Premier Doug Ford Announces Return of 'Buck-a-Beer' to Ontario

08 August, 2018, 03:07 | Author: Billie Castillo
  • Glasses of beer are seen in this undated

In keeping with his populist campaign promises, Premier Doug Ford joined by Minister of Finance, Vic Fedeli, and Minister of Government and Consumer Services, Todd Smith, made the announcement at a press conference held at Barley Days Brewery in Picton this morning.

Brewers are not required to charge the lower rate and few in the province sell at the current minimum.

The LCBO is offering incentives to breweries that participate in buck-and-beer come Labour Day.

The lower price, which is limited to beer with an alcohol volume of less than 5.6 per cent, will take effect on August 27 and is expected to be reflected on store shelves on Labour Day weekend.

"Nobody is being forced to lower their prices and there will be no subsidies or tax handouts", Ford said, calling the move a "win-win".

The minimum retail price for beer was $1 in Ontario between 2005 and 2008, before the government banned it in 2008.

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Effective Aug. 27, Ontario's government will lower the minimum price floor to $1 for any beer with an alcohol volume below 5.6%.

Ford says the buck a beer will allow for more competition in the market. The new price will not be indexed to inflation.

It will offer breweries who lower their prices promotional considerations like limited-time discounts, in-store displays or advertising in LCBO flyers and newspaper inserts. "And it won't affect the provincial treasury as beer is a volumetric tax".

"Essentially, if anyone does it, I predict that dollar beer is going to taste like it's worth about a dollar", Johnson said.

Ontario's New Democrats said Ford's efforts to reduce beer prices show his priorities are "completely mixed up", and suggested the plan effectively gives subsidies to beer companies.

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