B.C. spirits: Less bang for your booze bucks

 

B.C. moves to raise the price of spirits

 
 
 

Drowning your sorrows during these tough economic times will soon be more expensive, as the B.C. government quietly moves to raise the price of spirits.

The liquor distribution branch is boosting its "minimum display price" for such items as vodka, rum and gin. That trickles onto the shelves of public and private liquor stores as an extra 50 cents per mickey (375 ml), $1 per 750 ml bottle and $2 per 1.75 litre bottle.

Private retailers say customers will notice the price increase on cheaper brands, which are already sold close to the minimum price.

"We'll get non-stop griping that the price has gone up," said Rod Phillips, director of buying and marketing at Liquor Plus, which has three stores in Victoria.

"As a consumer, I want to know what I'm getting for it. Why is the price going up? The product isn't changing. It's not as if you're getting a better bottle of Smirnoff now. What am I getting out of that? We will get non-stop complaints at the till."

The increase takes effect April 1. Wine and beer prices are unchanged.

Total liquor sales in B.C. last year were $2.7 billion, of which 26.3 per cent were spirits.

The government periodically raises its prices as it reviews other rates across Canada, said Rich Coleman, housing and social development minister, whose ministry controls the liquor branch.

This year's price increase amounts to $1.33 per litre of spirits. The province raised the rate $1 a litre in 2008 and $1.33 a litre in 2006.

The province expects to pocket $7 million from the increase. Last week's provincial budget projected the liquor distribution branch's net income will rise from $867 million this year to $896 million, $918 million and $938 million in the next three years -- mainly due to increased sales.

The Opposition said the forecast was overly optimistic.

NDP critic Mike Farnworth said the spirits price increase partly explains the rising revenue. "How very convenient. Let's just ignore that in the budget, let's not say a word, and let's just sneak in a tax increase for consumers who want to enjoy their favourite alcohol beverage," he said. "That's really a backdoor, sneaky way of doing it."

The price increase, about 4.5 per cent a bottle, is "not insignificant," said Kim Haakstad, executive director of the Alliance of Beverage Licensees of British Columbia, which represents private liquor stores.

"It's a price increase in a time when consumers are very careful about every dollar they are spending," she said.

rfshaw@tc.canwest.com

 
 
 
 
 
 
 
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