Beer Store claims beer prices will jump with expanded sales

beer2

For years, the Beer Store has had a virtual monopoly on the sale of brews in Ontario.

But the provincial government is promising to expand the sale of beer into corner stores in this province, which would serve as competition for the Beer Store.

That study claims the price of beer pre-tax, is actually lower in Ontario, than in Quebec or Alberta.

Based on their analysis, Ontario taxes are 50% higher on beer than in Quebec, and 29% higher than in Alberta. And it's because of those higher taxes, that consumers in Ontario are paying more for beer in this province, according to the study.

"In a pre-tax basis, prices in Ontario are 13% lower than prices in Quebec and 23% lower than prices in Alberta," says study author Dr. Debra Aron.

The study is attached to a letter sent to finance minister Vic Fedeli, from the Chair of the Beer Store's Board of Directors.

In that letter, Charlie Angelakos says changing the way beer is sold in this province will affect their "efficient, low-cost distrobution system" and would result in significantly higher costs for beer. He also claims it would put the 7,000 jobs at the Beer Store, at risk.

This after the Retail Council of Canada released a study showing the sale of beer in corner stores could boost the number of jobs in this province by more than 9,000.

Newstalk1010 did a little research and found a case of 24 Bud Light cans selling at the Beer Store for $45.00. In Quebec, the same case sells for $28-31.

The Beer Store does have a 10-year agreement in place with the province, that was signed in 2015. Some reports have suggested, breaking that deal could cost the province as much as $1 billion.