A quiet maneuver is underway in Ontario, a deliberate attempt to raise the price of beer, wine, and spirits – and the government is working hard to keep it hidden.
The plan, initially proposed by the LCBO, would disproportionately impact bars, restaurants, and local convenience stores already navigating challenging economic times. But the story doesn’t end with the LCBO; it begins with a directive from the office of Finance Minister Peter Bethlenfalvy.
Despite a freedom of information request, the Minister’s office refused to release a letter outlining specific price increases for alcoholic beverages, citing potential harm to Ontario’s economic interests. This secrecy fuels the suspicion that the government knows exactly what’s happening – and doesn’t want the public to know.
The claim that increased prices wouldn’t harm the economy rings hollow when considering the impact on small businesses and consumers. Premier Ford has repeatedly stated he hasn’t raised taxes, but a price increase orchestrated by the government, regardless of what it’s called, functions precisely as one.
The directive wasn’t vague. Minister Bethlenfalvy’s letter to the LCBO chair detailed exact “wholesale mark-up rates” for each type of alcohol. This wasn’t a suggestion; it was a command.
The potential consequences are stark. A 24-pack of beer at your local convenience store could have risen by $4.52, and with HST, that figure jumps to around $5.11. Convenience stores, forced to absorb the increased cost, would inevitably pass it on to customers.
For those enjoying a pint at a bar or restaurant, the increase would be roughly 25 cents for standard beer and 30 cents for craft brews – a staggering 70% increase for smaller breweries. A busy establishment could send an extra $250 a day to the government solely on beer sales, potentially leading to price hikes or reduced staff hours.
That extra $250 represents the equivalent of two workers losing a full seven-hour shift at minimum wage. The impact extends beyond simple economics; it affects livelihoods and the vibrancy of Ontario’s hospitality scene.
When initial reports surfaced last fall, the government attempted to deflect blame, suggesting the LCBO was acting independently. However, once it became clear the directive originated with Minister Bethlenfalvy, he publicly dismissed the reporting as “misleading” and “dead wrong.”
Remarkably, neither the Minister nor his office ever requested a correction to the reporting, a telling silence that speaks volumes. The denial continued, with a firm assertion that there was “absolutely 100%” no plan to increase prices.
The proposed changes, initially slated for January 1st, have been temporarily paused until April 1st, a direct result of widespread outrage from every sector of the alcohol and hospitality industry. Brewers, wineries, distillers, retailers, and restaurant owners all united in opposition.
The government now claims the changes won’t impact prices, a claim few believe. The Finance Ministry has been deliberately opaque, actively fighting to withhold documents through freedom of information requests and imposing hefty search fees to maintain secrecy.
If the Ford government is determined to increase the cost of alcohol, the least they owe Ontarians is transparency and honesty. The current cloak of secrecy only deepens the suspicion that this is a hidden tax, levied under the guise of economic prudence.
The industry isn’t simply protesting a small price adjustment; they’re fighting against a lack of accountability and a government seemingly determined to operate in the shadows.
