Month: December 2012

Prince Edward Island has acted to free the grapes (at least partly) by quietly amending its Liquor Control Act (s.33) to allow PEI residents to possess up up to 9 litres of wine per person that has been imported from other provinces. PEI\’s liquor board (PEILCC) says that this only applies to \”in person\” transport of wine, not direct shipment. PEILCC and I disagree on this point because the law uses the word \”import\” and, in my view, the use of the word \”import\” can only be reasonably interpreted to include both \”in person\” transport and direct to consumer shipments. The language used applies to all wine, not just domestic … and there is no restriction to winery purchases so retail purchases would also be okay. On the down side, the section is poorly worded because it creates a cumulative personal exemption … PEI residents are only allowed to possess up to 9 litres of wine that has been imported at any given time (in other words, if you already have 1 case, you will have to drink it before you can order another one) … a restriction which is both impractical and unenforceable. 

For a complete review of provincial law on wine shipment within Canada, see this page: Shipping Laws on Wine within Canada.

Modernization of Ontario\’s wine distribution and regulatory system has hit the news today as Ontario PC leader, Tim Hudak, has come out publicly in favour of at least some degree of privatization (see: PC Leader Hudak Urges Sale of Alcohol in Ontario Grocery, Convenience Stores). In addition, many Ontario wine producers are mounting a campaign to allow private wine stores within the province in order to increase their distribution and reach new markets. This campaign also received coverage in today\’s Globe from Beppi Crosariol: Wine Producers Lobby for Private Stores in Ontario. Beppi\’s article included a good analysis of the government revenue issue … which usually pops up as soon as anyone mentions privatization. Those who believe that privatization will reduce government revenue simply do not understand the economics of liquor in Canada. For a primer, see my earlier article Canadian Liquor Economics 101 which explains why privatized or partly privatized systems make more money for government than systems with government retail. But for more recent numbers, see Beppi\’s article where he reinforces the point by noting that Alberta\’s privatized system makes more money for government than Ontario\’s state retail system.