The Alberta government won’t let grocers and corner stores sell liquor after a review concluded the move would “significantly harm” small businesses.
The decision, announced Wednesday, comes after a panel of government MLAs began looking into the possibility of expanding alcohol sales beyond Alberta’s 1,600 privately owned liquor stores earlier this year.
Lesser Slave Lake MLA Scott Sinclair, one of the politicians on the committee, said the review found that the change would “significantly harm small businesses and could ultimately lead to widespread closures, job losses and diminished selection for consumers.”
He told CBC News that the panel ultimately saw too much risk for unintended consequences.
“I think everybody already believes we have a province where [there is] accessibility and choice for liquor sales — I think we’re probably near the near the top of any province or any area,” he said.
“So there wasn’t, probably, enough potential on the positive side to outweigh what could be negatively adverse in the industry.”
Liquor store owners slammed the possibility of expansion, warning that adding even more competition would be “disastrous” in an already saturated market.
“To tell us that this is not going through, it’s just a huge relief, for sure,” Alberta Liquor Store Association president Ivonne Martinez said Wednesday.
“This was not a good idea. The thing is, there’s no lack of access to liquor here in Alberta.”
Alberta eyes Ontario’s approach
The Convenience Industry Council of Canada (CICC) is less pleased, calling the government’s decision “un-Albertan.”
Sara MacIntyre, Western Canada vice-president for the industry group, said broadly introducing liquor sales would help more Alberta convenience stores increase foot traffic and stay open.
“With this decision today, it’s really knocked off an option for innovation and growth for the convenience industry.”
Convenience stores across Ontario can now sell beer, wine and pre-mixed drinks as the province loosens alcohol sales restrictions. Hard liquor sales are still limited to LCBO locations and outlets.
A government representative said in the spring that the liquor sales review was “driven by media inquiries” about Ontario’s decision to allow grocery stores and convenience stores to stock alcoholic beverages — a significant change for that province, where the government-owned Liquor Control Board of Ontario handles the majority of retail alcohol sales.
Alberta, in comparison, privatized alcohol sales in 1993.
And some convenience stores are already allowed to sell beer, wine and coolers. As of October, 7-Eleven has 20 locations across the province that sell alcoholic beverages from a divided restaurant area of the store.
In Calgary, Metrovino Fine Wines owner Richard Harvey said he’s happy to let the possibility of further expansion die.
“When privatization in 1993 was announced, it was to create the opportunity for Alberta-based businesses, small businesses, to find their place,” he said.
“If you open it up to the big people of the world, the big giants of commerce, they will eradicate people like me, and the mom-and-pop liquor store.”
MLAs Andrew Boitchenko, Brandon Lunty and Chelsae Petrovic also sat on the panel. They consulted with provincial regulator Alberta Gaming, Liquor and Cannabis, liquor retailers, grocery and convenience operators, warehouses, and responsible-use advocacy groups Mothers Against Drunk Driving and the Canadian Mental Health Association.
Premier Danielle Smith added in a statement that she’s pleased to accept their conclusions.
“The idea of expanding liquor sales to grocery and convenience stores has been mused about for years,” Smith said.
“I’m grateful for the significant work done by MLAs to look into the feasibility and wisdom of such an expansion and the recommendations they’ve put forward.”
The press secretary for Service Alberta and Red Tape Reduction Minister Dale Nally said the panel’s report won’t be publicly released because it contains “commercially confidential information.”