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(Toronto) Media reports today indicate that a plan to allow the sale of beer and wine exclusively in “large supermarkets” is being seriously considered by some in the Ontario government. Independent grocers applaud the government for moving towards liberalizing sales of beer and wine, according to Tom Barlow, the President and CEO of the Canadian Federation of Independent Grocers (CFIG). But he added that “any measure that through arbitrary size restrictions or prohibitive licensing fees, would in reality exclude smaller size grocery stores from having an equal opportunity to sell beer and wine.” Such an approach, “would put the government in the position of picking winners and losers in the grocery industry. That is not the role for government’ Barlow said.
The CEO of the independent grocery association added that what the government also has to understand, is that retail grocery consolidation in Canada has been escalating, and large scale acquisitions, have increased the leverage of large supermarkets, which impacts the ability of independent retail grocers to compete.
Barlow said that the government should accept that there is already an accepted definition of grocery stores as outlined by the North American Industry Classification System (NAICS) which states:
“44511- Supermarkets and other grocery (except convenience) stores: This industry comprises establishments, known as supermarkets and grocery stores, primarily engaged in retailing a general line of food, such as canned, dry and frozen foods; fresh fruits and vegetables; fresh and prepared mats, fish, poultry, dairy products, baked products and snack foods. These establishments also typically retail a range of non-food household products, such as household paper products, toiletries and non-prescription drugs.”
The head of the independent grocers federation, pointed out that independent retail grocers cannot compete on price alone with large chain supermarkets. To maintain their competitive viability, with margins of between 1.5% to 2%, independent grocers must offer an enhanced shopping experience, a strong offering of local products and be closely integrated with the communities they serve across the province.
Making beer and wine available in grocery stores provides consumer convenience and in an independent retail scenario, compliments the food shopping experience and greatly enhances the opportunity of purchasing products from local craft brewers.
Mr. Barlow said that “CFIG accepts that the government has not yet made a decision with respect to this issue. That being said, it is extremely important that they know in advance of this issue coming before Cabinet and caucus for review, that we cannot accept the government altering the competitive landscape for retail grocery in Ontario.”
Independent retail grocers are an important part of the infrastructure of a myriad of communities across this province. Putting those independent businesses at a distinct competitive disadvantage, “could push some off the playing field completely” Barlow stated, pointing out that “once they are gone from the communities they serve—they are gone forever and taking part of the fabric of the community with them.”
CFIG will be meeting with Ed Clark and the Premiers Advisory Council on March 24th, and will convey the perspective of independent grocers to the panel members.
