Barley Mowat 

What’s In The Box?

with 3 comments

Let me help you out. You’re reading the Sun, and you find an article about privatizing some aspect of the LDB, so you decide to send it over to your favourite beer blogger.

Please don’t. I’ve read it already (thanks to the eagle-eyed Sharon, who beat everyone else by a solid day).

If you have no idea what I’m talking about here, this is the article in question.

Now you know why I hadn’t mentioned this before now. They aren’t talking about privatizing anything of note, just the warehouse. The LDB will still select what beer to carry, order it, give it to the new warehouse operator, and pick it up when it’s time to ship it to retail.

Yeah, that’s right. They’re outsourcing the box they store the beer in before they sell it.


I mean, I’m intrigued by the box and all, but it’s not really what we want, is it?

Yes, this is a step in the right direction, in that the government is giving up some minor aspect of their near-complete control over liquor distribution. However, don’t expect this to change, well, anything really.

In theory, it might make the storage cost a bit cheaper, but I wouldn’t bet on it. Along with the warehouse will come all sorts of longterm union contracts and a virtual guarantee of business from the LDB for the foreseeable future. High costs and a complete lack of competition usually don’t spell discounts.

Even assuming a miracle DID happen, and the warehouse found some corners to cut, what do you think the odds are the LDB would look at those savings and elect to pass them along? It’s not like they have to worry about their competition doing it. And there’s the problem.

If anything, prices might go up as new owners and management struggle to learn and adjust to the existing business. And that change I guarantee you we’ll see at retail.

Written by chuck

February 23rd, 2012 at 6:21 pm

Posted in Beer and You

3 Responses to 'What’s In The Box?'

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  1. Hey Chuck, it’s been a while. Finally catching up.

    We’re very worried that companies like Molson and Labbatts will purchase these warehouses. The price is going to be so high that only people like them will be able to buy it. But we’re not concerned as much about them controlling distribution. Our biggest concern is that once they own these warehouses, it probably won’t be long until they own all the liquor stores. Kind of like Ontario.

    Leo

    23 Feb 12 at 18:35

  2. Bah. That worked out well for Ontario… oh wait. Yeah, good point.

    chuck

    23 Feb 12 at 18:40

  3. I think it would be awesome if some honest people who couldn’t be bought out or bribed where to get the warehouses but we’re just worried that Molson, Labbatts, etc are gonna get it and find their way into the whole system. In a perfect world where that couldn’t happen, it would be better than dealing with the #$@% LDB. Cheers!

    Leo

    23 Feb 12 at 18:54

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