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The Balvenie 17 Years Doublewood and A larger Discusssion

 
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Quaich1
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Joined: 21 Apr 2012
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Location: Ontario, Canada

PostPosted: Thu Feb 21, 2013 6:45 pm    Post subject: The Balvenie 17 Years Doublewood and A larger Discusssion Reply with quote

This Balvenie expression just became available at the LCBO in Ontario but for 40 pounds equivalent MORE than it is in Scotland or England. This is the differential that drives me mad. The fancier the expression of a distillery, the more the differential between Ontario and Europe with guess who on the bottom of the stick, i.e., the buyer who suffers price discrimination. This is a perfect example right here. Occasionally one catches a break here on price where the differential is more narrow but still higher here but this improvement does not happen very often. The question is: Is this bottle worth the equivalent of 108.8 pounds? I don't think many folks would pay that in England or Scotland, would they with so much competition from so many great distilleries and liquor stores with more reasonable prices on high age statement bottles. Food for thought....The cost of living in Canada is quite expensive in general so it's not like we're rolling in $$$$ here either. The average person probably wouldn't touch single malt in Ontario because they couldn't afford it. The majority here imbibe a wide variety of Canadian whiskies, beer and wine in particular, especially in Ontario where it is actually quite reasonable and the quality amazing. There are 80 actual reknown wineries in a 50 kilometer radius of where I live; many of whom have won international medals, including those for ice wine, one of the specialties here.
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Genuine Risk
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PostPosted: Thu Feb 21, 2013 11:26 pm    Post subject: Reply with quote

Yes it doesn't sound much fun to be a whisky drinker in Canada. I am a bit ignorant as to how things work does the money raised go to fund public services such as schools etc? how much does the LCBO bring in for the government? where would money come from if shops were run privately? If liquor shops went out of government control are there other sectors that would be shouting for it as well?.

Also if it was cheaper and everybody could afford to buy would the price just go up anyway?

Although admittedly not cheap (you would probably need 5 bottles to justify) Loch Fyne Whisky ship to Canada, I think the figure is about 80% of whisky get through untaxed. Would you be tempted to give that a punt ? They are nice folk give them an email to see what the story is.
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Quaich1
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Joined: 21 Apr 2012
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Location: Ontario, Canada

PostPosted: Thu Feb 21, 2013 11:40 pm    Post subject: Reply with quote

Genuine Risk wrote:
Yes it doesn't sound much fun to be a whisky drinker in Canada. I am a bit ignorant as to how things work does the money raised go to fund public services such as schools etc? how much does the LCBO bring in for the government? where would money come from if shops were run privately? If liquor shops went out of government control are there other sectors that would be shouting for it as well?.

Also if it was cheaper and everybody could afford to buy would the price just go up anyway?

Although admittedly not cheap (you would probably need 5 bottles to justify) Loch Fyne Whisky ship to Canada, I think the figure is about 80% of whisky get through untaxed. Would you be tempted to give that a punt ? They are nice folk give them an email to see what the story is.


Let me provide some facts from the LCBO that may answer some of your questions up front:

$4.7 billion LCBO's net sales and other income in 2011-12

$1.63 billion Dividend the LCBO transferred to the Government of Ontario for 2011-12 (excluding taxes)


$12.9 billion Amount the LCBO has transferred to the Ontario treasury during the last 10 fiscal years combined (excluding taxes) to 2011-12

50.2 LCBO's profit margin, expressed as a percentage

15.8 LCBO's operational expenses as a percentage of net sales, in 2011-12

$767 million LCBO transferred to the federal government in Harmonized Sales Tax*, excise taxes and customs duties, in 2011-12

* The Government of Canada keeps five per cent of HST and sends eight per cent to the Government of Ontario

$767 million LCBO transferred to the federal government in Harmonized Sales Tax*, excise taxes and customs duties, in 2011-12

* The Government of Canada keeps five per cent of HST and sends eight per cent to the Government of Ontario


The LCBO will not be going out of the spirit trade anytime soon, probably not in my life time and then some. In Montreal, Quebec for example, the SAQ is the equivalent to the LCBO but supermarkets, small convenience stores are allowed to sell only beer and wine which is not the case in Ontario.

Also, cheaper prices only come with competition. I will have a look at the site you mention.

Hope this information helps.
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Big Mac
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PostPosted: Fri Feb 22, 2013 2:21 am    Post subject: Reply with quote

I feel for you, i seems like a very expensive pastime to have in Ontario and it sounds like it is the government who is making the additional profits and not the whisky companies.

Alcohol will always be a easy target for a government to raise funds but you do seem to be hit harder than others for tax and what seems like goverment profiteering.

I have a bootle of the Balvenie 17 Doublewood, i had it brought over from Scotland at christmas but havent opened it yet.
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Genuine Risk
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PostPosted: Fri Feb 22, 2013 10:55 pm    Post subject: Reply with quote

That's a lot of money they are bring in, I don't see the LCBO ending and the tax getting spread across the rest of Canada, especially if Canadians or not particularly well off as you say.

Personally if whisky was that price in Scotland I would drink something else.

The only way I could see it coming to an end would be a legal challenge. I am sure Canadian farmers didn't expect to see the end of the Canadian Wheat Board.
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