Ontario government promotes “buck a beer”

Ontario’s Premier Doug Ford announced on 7 August 2018 that his government would lower the minimum price of a 355 ml bottle or can of beer with an alcohol content below 5.6 percent ABV to CAD 1.00 (USD 0.76) from CAD 1.25.

As part of its election promises, Ontario’s new Conservative government will introduce legislation to roll back the minimum price of a bottle or can of beer in Canada’s most populous province by the end of August.

It was the previous Liberal government that hiked the minimum price from CAD 1.00 to CAD 1.25 in 2008.

The province’s 260 brewers will need to decide whether they want to drop their prices, prompting some to question whether the legislation will actually result in “buck a beer” as promised.

After all, the government will only offer a number of non-financial incentives, like prime spots in Liquor Control Board of Ontario stores and advertising in flyers or inserts.

Media say a number of craft brewers have already decried the policy, saying they could not afford to lower their prices at a time when the rising cost of cans – thanks to US President Trump’s trade war – forces them to hike their prices instead.

Brewers in Canada package half of their beers in cans. In fact, the vast majority of craft brewers in Ontario rely on cans to get their beers into the hands of consumers.

Besides, none of the craft brewers were selling beer at the price floor when it was CAD 1.25. On average, the price of a can of craft beer is between CAD 3 and CAD 4 (USD 2.30-USD 3.00) right now.

As far as we can tell, there are no beers on the market that consistently retail for CAD 1.25 per can.