Local distilleries, businesses prepping for possible LCBO strike
Posted Jul 4, 2024 08:27:36 AM.
Last Updated Jul 4, 2024 03:57:12 PM.
Some local businesses and distilleries are preparing for a possible surge in customers and potential impacts to their bottom line, as bargaining talks continue between the LCBO and the union representing its employees ahead of a Friday strike deadline.
The owner of Dixon’s Distilled Spirits in Guelph, Jeremy Dixon, told CityNews Kitchener they are ready, and happy, to step in if a strike occurs. Dixon added that their storefront will not be short of vodka, gin and whisky.
He said they are noticing a small ramp up already in customers coming in on weekdays; it is likely the possible strike will affect the company’s bottom line in the short term.
“As long as we have and keep our inventories up and meet the demands, our store will be fine. We’re happy to see more people in the door.”
Meanwhile, one of the owners of Murphy’s Law in Elmira, Ben Murphy, spoke with CityNews about the impacts an LCBO strike would have on them.
“We hope that they don’t go on strike, just so we can keep servicing the LCBOs and putting our products into the LCBO, they account for about 60 percent of our sales,” he said. “In the event that the LCBO does close, our sales will likely go down because the LCBO buys such large volumes from us already, so we’ll just basically transfer what’s in our warehouse out to our storefront.”
Murphy said a prolonged strike would impact and hurt their business. He said the LCBO is the only real avenue distillers like them are able to sell their products throughout Ontario other than through their own retail locations and nearby farmers markets.
“The strike does impact the distilling industry the hardest, and then within that component there is also the taxation we face within our retail location, so when we sell to the LCBO we actually make more money then when we sell through the retail store.”
To deal with a possible LCBO strike, Murphy said they will likely extend store hours, increase availability of products and make themselves more available for bars or licensee accounts looking to sell their products.
Another distiller nearby, Willibald Farm Distillery & Brewery in Ayr said they plan to extend home delivery if a strike happens.
The co-founder, Cam Formica, said the distillery won’t have a shortage of products available and will be open for the community.
“Our products will still be available online and through our retail shop, so although consumers may not be able to shop our products in store at the LCBO, they will still be able to access them directly through us,” Formica said in an email. “Despite having province-wide delivery, we will likely see a decrease in sales outside of Southwestern Ontario. The LCBO is our primary point of purchase in these areas but that might change in the event of a strike.”
A business in downtown Kitchener that just hit their first year in operation, Odd Duck Wine and Provisions, told CityNews they are also keeping track of the LCBO labour dispute.
“I don’t have the luxury to just stockpile a whole bunch of stuff in case, just because we’re tiny, we’re a 30-seat restaurant,” Wes Klassen said. “Worst comes to worst, I might do what I always do: support incredible Ontario wineries and we will just shift the wine list to 100 per cent Ontario till things open.”
They are also ready for a surge in customers if a strike does occur.
“We work against relying on the LCBO anyway because we’re trying to provide a really exclusive experience of coming and finding wines, spirits and things you can’t find anywhere else,” said Klassen. “When you come into the store you get to support a business that pays a living wage at a champion level, so come in to Odd Duck.”
In a statement, The Beer Store said they will continue “to operate routinely if there is a labour disruption at the LCBO.”
