Vancouver Council agrees to liquor sales in Groceries
The big news this week was Vancouver City Council agreeing to wine sales in Grocery Stores.
“Over the last few years, we have undertaken extensive public and stakeholder consultation regarding updates to the City’s liquor policies,” said Kaye Krishna, General Manager, Development, Buildings and Licensing¹. At a public hearing on April 17th, City Council voted to approve zoning bylaw amendments that will permit the sale of liquor in grocery stores. Highlights of the decision were:
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- A new retail definition, “Grocery Store with Liquor Store,” will replace the previous definition of a grocery store, which included drug stores.
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- Drug stores will not be permitted to sell liquor.
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- Qualifying grocery stores to sell liquor in their store via a store-within-a-store model.
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- Specific policies and guidelines will be reported to Council in early May.
- If approved, City staff anticipate accepting applications as of May 14.
History
The Vancouver City Council had previously decided on December 16, 2015 to temporarily hold off on grocery store wine sales until a larger review was conducted. This means Vancouverites had to be content with government liquor stores, private liquor stores, and a decreasing number of VQA wine stores, at least for the time being.
In other locations, the initial objection of grocery wine sales has been overcome with a number of municipalities leaving it up to the Provincial Government to make the rules on transfer of licenses to grocery stores (4)
I have posted many articles on the snail-like progress “BC Wine in Grocery stores” has made since the law was approved three years ago – here, here and here.
As expected the sales through Grocery stores are strong and fall in line with global standards, where eventually 65% + will eventually be sold through this channel.
In December 2015 BC Wine sales include²:
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- The 4 grocery stores accounted for 30% of total VQA license sales
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- The highest grossing non-grocery store was $218,000; highest grocery (Save-On-Foods South Point) was $264,000 (21% higher)
- Average non-grocery gross sales – $124,000; Average grocery store gross sales – $195,000 (57% higher)
By December 2017, BC VQA Wine sales showed a 27% year over year increase in sales through Grocery stores³.
Grocery Stores Selling BC Wine
Overwaitea Food Group (Save On Foods)
British Columbia Wine Institute communicated that an agreement was reached between the Wine Institute and Overwaitea Food Group (Save On Foods) that all VQA wine stores would be sold exclusively to the Overwaitea Food Group. The 16 store location currently selling wine are:
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- Abbotsford (Clearbrook)
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- Surrey (SouthPoint, Fleetwood and White Rock)
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- Tsawwassen
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- Maple Ridge (East)
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- Kelowna (Orchard Plaza, Lakeshore Centre and Westbank)
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- Langley (Downtown)
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- Parksville
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- Prince George (Spruceland)
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- Kamloops (Sahali)
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- North Vancouver
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- Penticton
- Richmond
Loblaw’s Awarded 6 VQA licenses for $6.9M
November 4, 2016, the BC Government announced that Loblaw’s was the successful bidder in the first round of special wine store licence auctions and has received approval in principle from the Liquor Control and Licensing Branch (LCLB) for six liquor licences that allow for the sale of 100% BC wine on grocery store shelves. The first six auctions are projected to raise $6,914,000 in revenue for the Province, which goes toward funding government programs.
Real Canadian Superstore operates grocery stores that sell wine in:
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- Langley
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- Langford
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- Kelowna
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- Vernon
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- Westbank and
- South Surrey.
Sources:
- Sale of liquor in grocery stores approved by City Council
- GROCERY WINE SALES: UPDATE ON THE ISSUES Vancouver, BC February 22, 2016, Vancouver International Wine Festival Seventh Annual Wine & Liquor Law Seminar by Al Hudec.
- BCWI FISCAL 2018: 3rd QUARTER REVIEW (October-December, 2017)
- . Vernon council won’t impose one-kilometre rule on grocery store wine sales