LCBO RESPONSE TO PRICING CLAIMS MADE BY SPIRITS CANADA
May 17, 2024 - LCBO is aware of Spirits Canada’s press release regarding select product pricing in Ontario. Claims made in this release are inaccurate and highly misleading to consumers.
In March 2024, LCBO posted the this statement regarding how we are working with a small number of suppliers to recover monies owed as a result of not complying with the LCBO’s Purchase Order Terms and Conditions. Those terms and conditions exist to protect consumers and to ensure LCBO can drive the lowest possible price for Ontarians.
Ontario consumers are being overcharged by some suppliers. Compared to other jurisdictions, Ontario consumers have paid up to $40 more on select brands of product. Ontarians should not be at an unfair disadvantage from suppliers selling beverage alcohol to other provinces at a lower price.
LCBO’s contract with suppliers is intended to help drive the lowest or most competitive prices for Ontario consumers. Ninety percent of our suppliers comply with our policies. It would not be fair to let a few suppliers gouge Ontario consumers. When suppliers do not honour our legal agreements on consumer protection, the only people that lose are Ontarians.
Facts
These are not a “retroactive tax bill,” nor are they fines or penalties, but rather pricing chargebacks in accordance with terms of our contracts that have long been in place.
As the largest purchaser of beverage alcohol in Canada, and one of the largest in the world, we take measures to ensure that we provide the most competitive price possible for our customers.
Our suppliers set their own pricing, as part of their marketing strategy and in response to external factors such as supply chain considerations, subject to minimum retail prices. The LCBO’s mark-up structure is transparent and a matter of public record. More information can be found here.
We cannot speak for individual suppliers, nor be held accountable for their business decisions resulting from not meeting the terms of their contract with LCBO.
Of the 10% of non-compliant suppliers, over 80% have since acknowledged breaching their contracts with LCBO and are working with us on payment terms and conditions.
LCBO is acting in the best interests of our customers to ensure that retail prices in Ontario remain competitive, and we have a duty to be fair and consistent with all suppliers who do business with LCBO.
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E-mail: PressOffice@lcbo.com
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