Attorney General and Minister of Justice Suzanne Anton announce positive changes to the wholesale pricing structure for wines over $20 a bottle. The government is reducing the mark-up for this category – leveling out the wholesale price for wines that would have been impacted.
Minister Anton stated: “government is not putting inadvertent pressure on industry to raise liquor prices when they sell their products to British Columbians. Our wholesale pricing model is not intended to increase government revenue or retail prices.”
Under the wholesale model previously released, a base mark-up of 89% would have been applied to the first $11.75 per litre of wine and a second tier mark-up of 67% would have been applied to the remainder.
The update announced today will significantly decrease the second tier mark-up from 67% to 27% – adjusting wholesale prices so they are more consistent with what industry sees today.
- We are pleased about the government’s announcement to reduce the wholesale mark-up for this wine category.
- ABLE BC joined a chorus of groups in the industry advocating for changes to the wholesale pricing model, and we are happy to see the government accept our recommendations.
- While ABLE BC’s Staff continues to “crunch the numbers”, overall wholesale prices will see little or no change on April 1, 2015.
- On February 1st, the LDB will release a new wholesale pricing calculator and vendor-specific price list. Following this release, ABLE BC will provide a more detailed analysis of the new wholesale pricing model.
- On March 6th, the LDB will publish Period I (April 1, 2015) wholesale prices; and on March 20th, BC Liquor Stores will publish Period I (April 1, 2015) retail prices for vendor-specific SKUs (hospitality sales).
If you have any questions or concerns, please don’t hesitate to contact the ABLE BC office.