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BC Moves to Full Wholesale Pricing for Hospitality Industry

The BC Government announced a ground-breaking and positive change for the hospitality industry today by moving to a normal wholesale pricing model for alcohol sales to restaurants/bars/hotels (i.e. the hospitality industry). This change has been sought in BC for decades and was a recommendation of the Business Technical Advisory Panel Report. It will allow the industry to purchase alcohol at normal wholesale prices rather than full retail prices (as they have been required to do in the past). This change (from July 2020 at least until early 2021) will dramatically reduce the cost of alcohol purchases (likely about a 20% cost savings overall) for hospitality industry customers and place them on a level playing field with their competitors in other jurisdictions. The change will be incredibly important for the industry as it seeks to recover from the COVID shutdowns and to rebuild their businesses. Purchases under the new model become effective at the end of July (announced date is July 20th).

Major thanks to Minister David Eby, his ministerial staff, and all of those at the LCRB and LDB who worked incredibly hard to make this change happen. Kudos as well to the industry stakeholder members of the Business Technical Advisory Panel who have invested much time and energy on this. This is truly a landmark government policy shift which will provide vital economic help to the hospitality industry at a time of dire need.

Press Release and Details are here: Province Expands Measures to Support Restaurant, Tourism Industries

Of note to wineries and other manufacturers: direct delivery sales to hospitality customers should switch to your normal wholesale price (i.e. same price as for private retailers) as of the date that the new model becomes effective (land-based wineries may have been doing this earlier). This change will provide much-needed economic help to the hospitality sector (i.e. some of the industry\’s best customers).

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