Ontario to offer incentives to brewers in buck-a-beer plan

Ontario to offer incentives to brewers in buck-a-beer plan

Ontario to offer incentives to brewers in buck-a-beer plan

Ontario Premier Doug Ford's government is lowering the price floor for beer and will be offering brewers incentives to reduce their prices in time for Labour Day weekend. "Instead we're going to do what we said we would do and put Ontario consumers first". "It's a buck-a-beer challenge - they'll have end of aisle when it comes to the LCBO, they might have those shelf extenders, they might be able to go into the LCBO, but it's costing the taxpayers zero", Ford told reporters Tuesday.

His thoughts are shared by Lon Ladell, brewmaster at Big Rig Brewery.

Last week, the Ford government reversed its promise to keep Ontario's basic income pilot going. "You couldn't be more tone deaf on this subject".

Baldwin says Ford's campaign promise inspired his brewery to look into making its own buck-a-beer.

The move will have no effect on the province's $589-million in revenue from beer and alcohol taxes, Finance Minister Vic Fedeli said.

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The $1 price is for 341 ml bottles only.

The current minimum price will drop from $1.25 to $1, according to the Premier.

"Selling it for a $1 for us, that just wouldn't be possible", he said. Despite coming in a small container (76 ml less than a regular-sized beer bottle), it still costs 20 cents more than the current provincial minimum. Carling lager sells for about $1.60 a can (or $38.95 for a 24-pack) at the Beer Store, Maclays and Laker for just $1.70 and $1.65 a can, respectively.

Annual indexing for all packaged beer will be suspended to maintain the $1.00 minimum floor price over time. "It doesn't include anything else like, you know, our rent, paying our staff, insurance - all the other costs of running a brewery", Appeldoorn said. "Nobody even jumps into that (price) from a promotional standpoint".

Paul Meek with Kitchesippi Beer Company isn't on board with the idea.

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"I don't see it being a thing. I think it's a great deal", said Mr. Ford in an appeal to brewers. "I don't see any benefit to this at all".

For comparison, $1 in 2008 is equal to $1.16 in today's money, once inflation has been accounted for.

"Give the tax payers a break and let them have 24 cans of beer for 24 bucks".

"Nobody can make beer at $1 a bottle with the Ontario and federal taxes as they are".

Even consumers don't seem to be overwhelmingly in support of the government's announcement. And he doubts many other brewers will take the premier's bait.

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The People's Pint, a brewery based in Toronto, said it would not be joining what it called a "race to the bottom" on Twitter.

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