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Local liquor retailers see upside to privatization

On July 24, Competition, Science and Enterprise Minister Rick Thorpe set the wheels in motion for a government plan to privatize liquor outlets in the province, stating at a televised cabinet meeting that, "The government brings no special talen

On July 24, Competition, Science and Enterprise Minister Rick Thorpe set the wheels in motion for a government plan to privatize liquor outlets in the province, stating at a televised cabinet meeting that, "The government brings no special talents or purpose to retailing, warehousing or distributing alcohol."

Instead, he announced that the government would shift its focus from sales to regulation and public safety.

No schedule or plan for privatization has been announced. And there haven’t been any details about how the government expects to liquidate 224 liquor stores and two warehouses. While taxes and costs will remain the same for buyers, the government maintains that privatization will result in improved services, more consumer choice and access, and better use of Liquor Distribution Branch resources.

In Whistler, local liquor distributors outside of the government stores believe that the change will be positive in the long run.

Kirk Shaw, sommelier for the Bearfoot Bistro, said the restaurant has a good relationship with the local liquor stores but the current system is far from ideal.

"The liquor store is actually pretty good up here, the managers are fantastic," said Shaw. "But they’re under the gun from the people above them as far as all the little irritating things that drive you nuts."

Shaw believes private stores will become more service-oriented, and will treat customers like the Bearfoot Bistro, which boasts one of the largest wine cellars of any restaurant in the province, with more respect.

"You’re a customer who burns through a million dollars worth of project and they’re yapping at your heels over a six pack that’s sitting there," said Shaw.

Private agents are already picking up the slack for restaurants like the Bearfoot Bistro in ensuring that the restaurant can acquire rare or seasonal products without having to drive to the city and line up at the government stores with other restaurants and members of the public.

"It has gotten better, and our agents are pretty good at getting what we want, but there are so many weird things that can happen in the system just because it’s the government," Shaw said.

As recently as last year the restaurant lost its entire allocation of a rare wine without any explanation.

"There’s no accountability in that system right now because it’s a government monopoly. It’s not going to change dramatically because at the top the government is not going to let go of distribution, but a private company has more incentive to make sure things flow as smoothly as possible," he said.

Shaw also noticed that the staff at government liquor stores in other locations are not as helpful or knowledgeable as in Whistler.

"You go to Squamish and try to get an inter-store transfer and it’s impossible," he said. "They say you have to have a meeting with the liquor inspector to get a transfer even though it’s a fairly routine, legal, process – for two bottles of champagne.

"It’s too bad for some of the good people in the system who will lose their jobs when the liquor stores become private, but I shed not a tear for a lot of them. It’s a service industry but a lot of employees acted like that was the last thing on their minds."

Shaw believes that privatization won’t affect availability, although places like Whistler will likely benefit from a wider selection that smaller towns where the tastes are less varied and the customers less discriminating.

"If you live in Prince George and you’re into more exotic wines, for example, I think you’re going to be out of luck."

Dale Schweighardt, the manager of Buffalo Bill’s and a member of the municipal Liquor Advisory Committee, said privatization won’t have a huge impact on the way that the nightclub buys liquor.

"My understanding is that it will always be warehouse delivery, whether that’s government or privatized, and the prices will probably be about the same" he said.

"We may choose to go private, because we would choose facilities based on service. We don’t have horror stories about the current service levels, or local liquor stores especially, but one private store may be better than another and that’s where license holders will go."

While the warehouse deliveries do come to the door, Schweighardt says they have to deal with local stores from time to time to stock up on items.

"Anything we buy locally we have to pick up ourselves," he said. "That’s understandable, they’re not in the business of delivering small orders at this point, but private stores may decide to do it. That’s what we’ve seen in other provinces that are privatized.

"We don’t see anything improving substantially, just minor things like delivery."

As for the three independently-owned cold beer and wine stores in the community, privatization is welcomed because they’ve discovered that it is impossible to compete with the province.

"Things have gotten better, the (Liquor Distribution Branch) has given us little advantages now and then, but we’re still not on an even playing field with them," said Bonnie Casavant, owner and operator of the Blackcomb Cold Beer and Wine Store.

"Privatization could be good for us in the long run if the private retailers have to pay the same prices that we do. Right now we pay more because the government is also the distributor, even after our discount. If we’re paying the same price, we can charge similar prices as well."

However, she isn’t expecting changes to the system any time soon.

"It’s going to be a long process, and there are a lot of blanks the government needs to fill in before we can know how this is going to affect us."