Earlier this month, it was announced that Ontario’s biggest beer seller, The Beer Store (TBS), is losing money hand over fist. In 2020 – taking the pandemic into account – their loss was $50.7 million. As much as the pandemic has played a role in profit loss for the industry across the board, The Beer Store actually hasn’t turned a profit since 2017.

The question has now risen, why does this privately owned sector run most of the market and is it time for a change? The original erection of TBS was in 1927 and its purpose was to create a strict access points for beer retail, appeasing prohibitionists by supposedly protecting society from alcohol consumption.

The Beer Store stands behind its protection law stating that being in business allows the preservation of jobs for its employees, keeps prices low and brings in revenue for the province.

TBS president, Ted Moroz, stated that liberating alcohol in 2019 would put 7,000 jobs at risk. However, research from the Retail Council of Canada shows that expanding retail sales would  create 9,500 new jobs in Ontario and boost GDP by $3.5 billion a year.

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Photo courtesy of The Beer Store