Canada’s Alcohol Laws Are Stuck in the Past
If there is one thing that the never-ending lockdowns have taught us, it’s that Canadians LOVE to drink. This has become especially clear during the pandemic. Unfortunately, Ontario residents are hampered in our beveraging hobby by the Liquor Control Board of Ontario (LCBO). The LCBO is a relic of a bygone age of prohibition. Like every government-controlled entity, the LCBO is a nightmare for consumers and producers to navigate: it uses red tape and bureaucracy to destroy market mechanisms and is enough to drive any person to drink. Instead of acting as a distributor for breweries, distilleries, and vineyards to get products to market, the LCBO partakes in price setting that limits competition and puts small businesses at a disadvantage against large corporations.
The LCBO’s single and most glaring problem is that when a producer wants to sell their product, the LCBO sets the price. That is the minimum sale price anywhere in Ontario, be it at a restaurant, brewery, grocery store, or any other place one can buy alcohol. Usually, this price is higher than the what producer initially sold the product for, thus driving potential consumers from the mar
Article from Mises Wire