The Evolution of BC Liquor Laws - Home - Fortify Conference
Transcript of The Evolution of BC Liquor Laws - Home - Fortify Conference
Legal Issues Affecting the BC Wine Industry Mark Hicken, Vintage Law Group
November 2018. Penticton, BC
The Evolution of BC Liquor Laws
Introduction
✤ Liquor Regulation in BC -
Have to Trace Back to
Prohibition
✤ Uniquely North American
Approach. Very Different
from Europe.
Introduction
✤ BC Prohibition – reaction
to “Wild West” situation –
lasted from 1917 to 1921
✤ October 21, 1920: BC
voted to repeal
Prohibition.
✤ June 15, 2021: Repeal of
Prohibition and Beginning
of Government Control
System
Post-Prohibition Legacy
of Regulation
✤ No alcohol vs. tightly controlled
alcohol
✤ Morality based - starting
mentality was significant control
✤ No distinction for wine
✤ Wine = Alcohol
Alcohol = Danger
Danger = Strict Regulation
Effects:
Retail Distribution
✤ Tightly restricted retail system
✤ Limited access to other
Canadian markets
(interprovincial shipping)
✤ No conventional wholesale
discount system
Effects:
Hospitality Industry
✤ Restaurants/Bars
✤ Strange rules over the
decades
✤ Food/liquor
✤ Entertainment
✤ Operations
✤ Zero wholesale discount
Effects: Manufacturers
✤ Operations as “agent” of the
LDB
✤ Land Based vs. Commercial
Wineries
✤ Restrictions on LBW
✤ Regulation through LDB
manufacturer agreements
✤ VQA, GIs, Packaging
✤ Winery Terms of License
Effects:
Wine Culture
✤ Tasting Event Rules
✤ Off-Site Tasting Rooms
✤ Farmers Market Tastings
✤ Picnics
✤ Special Occasion Permits
✤ Caterers
Structure of BC Wine
Regulation
Statutes: Liquor Control and
Licensing Act, Liquor Distribution
Act, Food & Ag. Products
Classification Act
Regulations
“Policy”: e.g. LCLB Manuals
Terms and Conditions of License
Other: LDB Manufacturer
Agreements
Modernization: Provincial
Griffiths Report, 1929. Brewery
cartel and political influence.
Stevens Commission, 1952. Lack
of enforcement, trade practices
issues, monopolies.
Morrow Commission, 1970.
Liberalize liquor policy, allow
advertising, trade practices.
1975. Separation of licensing
and distribution in regulatory
structure.
Modernization: Provincial
✤ 1978. Promotion of BC Wine – policies
introduced.
✤ Jansen Policy Review, 1987. Sampling,
sponsorship, advertising. Responsible
Service.
✤ Surich Policy Review, 1999. Support for
hospitality industry, licensing reform –
focus on public safety.
✤ Privatization, 2002.
✤ Retail & Hospitality changes, 2010.
✤ Yap Policy Review, 2013-14. 74
recommendations.
Modernization: Federal
✤ Interprovincial Shipping
✤ Comeau
✤ Steam Whistle
✤ Federal labeling laws
✤ Trade issues
Benefits for BC Wineries
✤ Tremendous growth in BC wine
industry
✤ Regulatory exemptions:
✤ Direct delivery system
✤ Preferential treatment on LDB
markup
✤ BC-only retail stores
✤ Trade issues, consumer issues
✤ USMCA - Wine in Grocery
✤ USMCA – Alcohol Annex
✤ WTO Challenges
BTAP Review/Report
✤ Business Technical Advisory
Panel and “Hicken Report”,
2018-19.
✤ 24 Recommendations.
✤ Process:
✤ Initial Engagement (22 stakeholder groups, 4 health
orgs., 2 labour orgs., 1 indigenous winery)
✤ Panel Meetings
✤ Report with Recommendations (available on LCLB web site)
BTAP Review/Report
✤ Recommendations:
✤ LDB Distribution
✤ LDB Data Sharing
✤ LDB Governance
✤ LDB Retail Mandate
BTAP Review/Report
✤ Recommendations (cont’d):
✤ Hospitality Price/Discount
✤ Licensee-Licensee Sales
✤ Health & Social Resp.
✤ Manufacturing & Licensing
✤ LCLB Fees
Regulatory Focus
✤ No longer a moral issue
✤ Focus on public safety and
health
✤ Current regulatory directions:
✤ Government revenue
✤ Encourage economic activity
✤ Consider business effects
✤ Address problem consumption
and behaviours
✤ Avoid influence issues
Conclusion
✤ Post-prohibition restrictions were
extensive.
✤ We have come along way. BC
producers obtained exemptions
from regulation.
✤ Plenty of potential changes
ahead.
✤ Further growth of BC food and
wine culture.
Thank You! Questions?
✤ Mark Hicken
✤ Vintage Law Group
✤ @markhicken
✤ T 604 868 1375
W www.winelaw.ca