Ontario will see the return of buck a beer by Labour Day weekend, The Canadian Press has learned, though some in the industry predict few brewers will embrace the new, lower minimum price.
A source with knowledge of the plan says the Progressive Conservative government is expected to announce Tuesday that it will lower the minimum price of a bottle or can of beer to $1 from $1.25 by the September holiday weekend.
Brewers would not be required to charge less, however, and the lower minimum price would not apply to draft beer, nor would it include the bottle deposit.
The government is hoping to get brewers on board by launching what it calls a 鈥渂uck-a-beer challenge鈥 with incentives for those who cut prices to $1, the source said.
The move was one of Premier Doug Ford鈥檚 promises during the spring election campaign, and Ford suggested in a video released Friday that he would be making good on it soon. He has also vowed to broaden the sale of beer and wine to corner and box stores.
Happy International Beer Day! As promised, buck-a-beer is coming soon to Ontario, which will be great for beer fans and breweries across our province. I hope everyone enjoys the long weekend responsibly with your beverage of choice.
鈥 Doug Ford (@fordnation)
The Tories have said bringing back buck a beer would allow more competition in the beer market without affecting the province鈥檚 revenues from beer and wine taxes, which brought in roughly $589 million in 2016-2017, according to government documents.
Ontario previously had buck-a-bottle beer but the Liberal government quietly hiked the minimum price in 2008, citing its 鈥渟ocial responsibility鈥 mandate.
In its heyday, buck a beer was a successful marketing campaign and seized a significant share of the market, said Scott Simmons, president of Ontario Craft Brewers, who was an executive at The Beer Store at the time.
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Several brewers adopted it, including Lakeport, which 鈥渞eally took it to town,鈥 said Simmons, who spent a year at the company.
But the costs of making beer have gone up, as have the provincial and federal taxes, making it less feasible for brewers to sell their product at the $1 minimum price now, he said.
鈥淚 don鈥檛 see many, if any, heading to that price simply from a profitability point of view,鈥 he said.
鈥淚 don鈥檛 think it can be done in 2018 but some brewers may think it can be done and I鈥檇 be interested to see what鈥檚 actually in the product that they鈥檙e selling at that price,鈥 he said. 鈥淚t can鈥檛 be very good, let me put it that way.鈥
Few brewers sell at the current minimum price unless they鈥檙e having a sale, Simmons said, noting that an additional $6 drop for a case of 24 would likely wipe out any profits.
Still, the move will appeal to value-conscious consumers, though it probably won鈥檛 affect the craft beer market, which attracts a demographic that is willing to pay more, he said.
Paola Loriggio, The Canadian Press
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