Beer Price Hike in Ontario

Reason? Liquor is too cheap for your own good, you damn alcoholics.

The Ontario government last month quietly hiked the minimum price that can be charged for beer, to $25.60 from $24 for a case of 24 bottles.

That 6.7 per cent increase in the floor price of a case, bottle deposit excluded, has nothing to do with supply-and-demand, production costs, overhead or distribution expenses.

Instead, the Liquor Control Board of Ontario sets minimum prices as part of its œsocial responsibility” mandate established in 1993. Translation: If alcohol is too cheap, you may abuse it.

But documents obtained under Ontario's freedom-of-information law show that the Ministry of Finance, not the LCBO, pressed for higher beer prices ” raising questions about the arm's-length relationship between the two bodies.

œThe Ministry of Finance recommends an increase to the minimum retail price for beer effective November 24, 2008,” says a memo distributed to board members for their Oct. 15 meeting in Toronto.

œLCBO does not issue news releases for price increases,” said Ms. Hapak.

This is the reason why a government mandated monopoly on the sale of any product is bad news. Governments are tempted in times of financial hardship to increase revenue in any way they can. Not only that, they pass it off under the guise of "social responsibility" which is completely laughable when the LCBO's main marketing expense is creating glossy product guides to get consumers to drink as much alcohol as possible. Witness the "Holiday Food and Drink" guide in LCBO stores and on the website now.