Liquor Control and Licensing Branch POLICY DIRECTIVE No: 16-04 Date: February 23, 2016 To: All LCLB Staff All LRS and Wine Stores All Manufacturer Associations Liquor Distribution Branch All Local Government, First Nations and Police Agencies Re: Minimum Liquor Pricing in Liquor Stores Introduction Effective May 1, 2016 a new policy will come into effect imposing new minimum liquor prices in Licensee Retail Stores (LRS), Wine Stores and manufacturer on-site stores. The same policies will apply to BC Liquor Stores (i.e. LDB stores) and Rural Agency Stores. New Policy The following policy has been introduced to set the following minimum retail prices in LRSs, Wine Stores and manufacturer on-site stores. A licensee may not sell liquor for less than either of the following prices: 1) The price that the licensee paid for the liquor; or 2) The price set out in the table below. Liquor Category Wine Spirits Liqueurs Packaged Beer (bottles and tins) Draught Beer (kegs 18 litres or greater) Cider and Coolers Minimum Price Per Litre (not including all sales taxes) $6.44 $27.88 $20.39 $3.19 $1.97 $3.75 Requirement (1) above, is the continuation of a longstanding LCLB policy. Requirement (2) above is to help ensure that liquor with very low wholesale prices is not retailed at prices that may encourage abuse or overconsumption. The Appendix contains examples of minimum prices for common package sizes. In addition, an interactive Excel spreadsheet is available on our website allowing you to enter different product sizes to determine the minimum price. Follow the link here: Page 1 of 3 http://www.pssg.gov.bc.ca/lclb/docs-forms/minimum-price-calculator.xls Under the Liquor Control and Licensing Act, the LCLB can apply this policy only to LRSs, Wine Stores and manufacturer on-site stores. However, LDB will impose the same pricing policies on their stores and they will also require Rural Agency Stores to follow the same rules. To provide liquor stores with sufficient time to review and adjust their retail pricing and advertising, the new policy will not come into effect until May 1, 2016. In the interim, the existing policy prohibiting licensees from selling liquor below its purchase price remains in effect. Further Information Further information regarding liquor control and licensing in British Columbia is available on the Liquor Control and Licensing Branch website at http://www.pssg.gov.bc.ca/lclb/. If you have any questions regarding these changes, please contact the Liquor Control and Licensing Branch toll free in Canada at 1-866-209-2111 or 250 952-5787 if calling from the Victoria area. Original signed by Douglas Scott Assistant Deputy Minister and General Manager Page 2 of 3 APPENDIX MINIMUM RETAIL PRICES BY PRODUCT CATEGORY AND SIZE Product Type Product Size BEER - Packaged 650 ml 6 x 341 ml 12 x 341 ml 6 x 355 ml 12 x 355 ml 500 ml Minimum Retail Price (excluding all sales taxes) $2.07 $6.53 $13.05 $6.79 $13.59 $1.60 BEER – Kegs 18 litres or more 20 litres $39.40 30 litres 50 litres 58.7 litres $59.10 $98.50 $115.64 WINE 375 ml 750 ml 1.5 litres 2 litres 4 litres 16 litres $2.42 $4.83 $9.66 $12.88 $25.76 $103.04 SPIRITS 375 ml 750 ml 1.14 litres 1.75 litres $10.46 $20.91 $31.78 $48.79 LIQUEURS 375 ml 750 ml 1.14 litres $7.65 $15.29 $23.24 CIDER AND COOLERS 473 ml 473 ml x 4 355 ml x 4 330 ml x 6 355 ml x 6 2 litres $1.77 $7.10 $5.33 $7.43 $7.99 $7.50 Page 3 of 3