| I'm not a fan of the LCBO's regulatory or wholesaling/importing arms, but. I grew up in Alberta. Privatization of liquor there happened just around when I turned 18. LCBO vs the typical Alberta "liquor barn" type operation is no contest: the LCBO wins. On selection, on service, on presentation. There are just a handful of decent wine shops in Edmonton when I visit. Their selection is meh. Almost every decent sized LCBO has a "Vintages" selection with a decently currated selection of wines. They are actually the superior retail experience, and they treat their employees far better on the whole. The LCBO is also the single biggest importer of liquor in North America last I looked. Many European producers actually produce special labels and product just for the LCBO, because it buys in quantity for all of Ontario. Politicians don't dare visit privatizing it not because of the suggestion it might make them look ineffective but because the LCBO brings in an obscene amount of revenue. (The wine industry in Ontario is actually something I know a lot about. The real problem here is the regulatory side of things, and also the regulatory capture that what I call the "Niagara VQA Mafia" has over the domestic wine market. Becoming a wine producer in this province is stupid, it's been locked down to the same handful of meh grapes in an essentially locked in set of growing regions with no room for innovation, and the gov't totally destroys you on excise taxes, etc. not to mention the cut the LCBO takes from you) |
Alberta has many kinds of liquor stores that optimize for different things, such as price, convenience or selection, all based on market demand. Last time I checked, they had far more SKUs overall (distribution is still centralized by the government for taxation and regulation).
Your experience at the LCBO might be great, but this is coming from less efficient operation. Would the private market support a “Vintages” section in every store and unionized cashiers at $30/hr? Probably not. Why should Ontario taxpayers be effectively subsidizing the alcohol retail experience in Ontario? It’s a ridiculous proposition.
The LCBO brings in a lot of revenue, but with a monopoly on most alcohol sales this is inevitable. Every privatization study (including the Liberals’ own study which they ignored) says that privatization would have no impact on revenues, which improving almost everything for the consumer (more convenience, more selection albeit via specialized stores, etc.)