The Beer Store reveals it's losing tons of money after sales expanded to supermarkets
The retail market opening up is being blamed for a "cash flow shortfall" of over $13 million for The Beer Store, according to a letter sent to The Beer Store owners by president Ted Moroz.
In addition to beer sales opening in 450 grocery stores in Ontario, a 10-year agreement between the Province and The Beer Store was also put in jeopardy last year. The Province even created a website with the sole purpose of promoting beer sales in corner stores.
It's been reported that the percentage of beer sold in Ontario at The Beer Store dropped from 90 per cent to 63 per cent in 2019, with beer drinkers now able to pick up their favourite suds at grocery stores as well as the LCBO.
The LCBO is also the sole supplier of beer to grocery stores in Toronto.
In order to make up for the shortfall, apparently The Beer Store may be pulling out of the retail market, and plans to close 10 stores including five in Toronto.
It’s normal that there should be closures as new retail outlets take sales. I haven’t bought beer at TBS in years—my LCBO & local microbreweries have all I need & are more convenient, even without beer on grocery stores. https://t.co/DIuX68GPpx— Jeff Brown (@djbip1986) February 20, 2020
While some call both the LCBO and The Beer Store "sacred cows limping to slaughter," others say that the LCBO and local microbreweries have all they need even without beer being sold in supermarkets.
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