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BC Modernizes to Permit Licensee to Licensee Alcohol Sales

BC’s hospitality industry and private liquor retailers will be celebrating today as a result of an immediate change in liquor policy relating to distribution. Effective today, BC’s private liquor retailers are permitted to sell directly to licensees in the hospitality industry (i.e. restaurants, bars, hotels). Previously, hospitality licensees could only purchase from LDB wholesale, designated government stores, or direct from BC manufacturers. 

The restricted distribution system prevented licensees from sourcing product from private stores whenever there were issues with the government distribution system (e.g. strikes) or simply to replenish stock more easily when something ran out. The ability to buy from private retail also enables smaller purchases of a wider variety of product since ordering through LDB wholesale generally requires purchase by the case. 

It is expected that this will be particularly beneficial to smaller restaurants who typically like to source lower volume, hard-to-find wines or spirits and who will now be able to buy directly from private retailers who often stock many such products that are not easily available through government channels. Larger volume purchases will likely continue to be made through LDB wholesale where licensees can purchase at the registered wholesale price.

This change has been sought by industry for many years (actually decades) and was also included as Recommendation 11 in the BTAP report which I authored on behalf of industry in 2018. The news release stated that this change is designed so as to “help B.C.’s bars and restaurants respond quickly to customer demand, especially during major special events”. Technically, the change is described as ‘temporary’, starting May 29 2026 (today) and going until June 1 2029, although it is hard to see this being reversed. Retailers cannot sell below the wholesale price at which they purchased the products and must sell directly to the licensee (i.e. not through third party delivery services).

This change is excellent news for the continuing modernization of BC’s liquor distribution and regulatory system. For food and wine enthusiasts, the reform will make it much easier for licensees to increase selection and to maintain stock of products. While the catalyst appears to have been the World Cup, many stakeholder groups and businesses have worked on this issue for a long time. Kudos to the BCLDB and Minister of Agriculture, Lana Popham, for implementing the reform.