Evidence of meeting #73 for Agriculture and Agri-Food in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was different.
A recording is available from Parliament.
11:50 a.m.
President, Brewers Association of Canada
I don't have that statistic. I could follow up with you.
11:50 a.m.
Conservative
LaVar Payne Conservative Medicine Hat, AB
That would be interesting to know.
You did talk about the conditions and certainly the expense for farmers to get back into hops. Does any aspect of climate have an impact on this? Do they have to have a much warmer climate to grow the hops, or do hops have to be grown in a certain timeframe?
11:50 a.m.
President, Brewers Association of Canada
Climate is a big part of it. A lot of hops were grown in the Fraser Valley pre-1990. Some people are saying with Canada becoming a little warmer and drier we might make more land available to crops like hops, but I don't know if we can wait to see how that's going to unfold.
11:50 a.m.
Conservative
LaVar Payne Conservative Medicine Hat, AB
Are there a lot of requirements, say, for irrigation as well for the hops?
11:50 a.m.
Conservative
LaVar Payne Conservative Medicine Hat, AB
The other thing you and some of my colleagues talked about is the market. Obviously there are different standards within the provinces. For example, in Alberta you can buy beer at a beer store or you can buy it off-tap at the bar, and almost everything else is private in terms of market availability. I go to my local co-op when I buy it because they've got some great prices.
I'm wondering how that compares, say, to Ontario. I know they've got a beer store here, but I'm not sure if they sell through LCBO. And what about the other provinces? Are there some major differences there?
11:50 a.m.
President, Brewers Association of Canada
Every province is unique. Quebec and Alberta are probably the most open, if you will. In Quebec you've got convenience stores, 17,000 points of retail in Quebec, compared to a province like Ontario, which has a bigger population, where you've got 12,000 or 13,000. What we carry in a beer store or an LCBO is much different from what they can carry in a convenience store.
Alberta privatized in 1993, and I think they've enjoyed some success with that model, but it is a very different model. Like Quebec, the taxes are much lower, and that's because the province isn't involved with any aspect of distribution and all that cost is on the brewers or their distributors. In Alberta, for instance, I think when they first privatized one of the things they did over the course of a year was roll back the taxes several times, to deliver on not only the convenience issue but also the pricing issue, because the last thing the government would want to see is prices going up when they've privatized. When you do that it adds more cost to the system, and that had to roll out.
11:50 a.m.
Conservative
The Chair Conservative Merv Tweed
Thank you.
We are at the time limit, but I want to make sure there are no other lingering questions for our guest.
Madame Brosseau, you have the floor.
April 16th, 2013 / 11:50 a.m.
NDP
Ruth Ellen Brosseau NDP Berthier—Maskinongé, QC
Thank you for coming.
I have some experience. I was employed by this industry before being elected. Do you represent non-alcoholic breweries also, or is that completely...?
11:50 a.m.
President, Brewers Association of Canada
We represent companies that would make non-alcoholic beverages. Labatt produces their Labatt Blue, which is 5% alcohol. Molson produces Molson Excel, which is .5%. Those would be the biggest ones. They are treated like a non-alcoholic beverage, and they don't carry the same tax or the same distribution limitations.
11:55 a.m.
NDP
Ruth Ellen Brosseau NDP Berthier—Maskinongé, QC
What upcoming trends do you see in beer? I know I've gone to the LCBO and the SAQ in Quebec and there's been a mojito, and I think you brought up the lime. Do you see that continuing? You were also saying there's a beer for all occasions. Do you think that is trying to appeal to a younger generation, or maybe females who weren't interested in regular, standard beers or lagers? Is this something we're going to see more of?
11:55 a.m.
President, Brewers Association of Canada
I don't get to peer into the hearts and minds of the marketing people within the breweries, but I think there certainly is an effort going into broadening the appeal of beer to a larger audience, because per capita consumption has been very stable or flat for several years. So in trying to find new ways to give people a reason to try our products, I think you're going to continue to see that development and that experimentation going forward.
11:55 a.m.
NDP
Ruth Ellen Brosseau NDP Berthier—Maskinongé, QC
Do you have any other recommendations for the committee? I'll just give you a chance to maybe finish up with your conclusion.
11:55 a.m.
President, Brewers Association of Canada
No, I'm very grateful for the opportunity to come here and present, and I thank you for all the questions. At any time, if you want to stop by our office, we're right across the street at 45 O'Connor. You're more than welcome to come and have a beer with us.
11:55 a.m.
Conservative
The Chair Conservative Merv Tweed
If I may, I'm going to ask Chad to circulate the document that I need the committee to talk about.
Do beer sales change by who's marketing it? Obviously there are liquor commissions in some parts of the country, whereas in other parts it's the wide open market. Do you see a change when it's a different distributor of your product?
11:55 a.m.
President, Brewers Association of Canada
I think across the board all of the provincial liquor boards have done a fantastic job, not just on the responsible use programming but also on cultivating a real appreciation for food and for drinking in moderation, whether it be beer, wine, or spirts. I think we were very complimentary towards the efforts of the liquor boards regarding what they've done to expand people's interest in our products to accompany or complement food.
11:55 a.m.
Conservative
The Chair Conservative Merv Tweed
That kind of answers my question. I was more interested in the straight side on retail. I've read some stories about how the liquor commissions now are beefing up their beer sales because they find they're losing market to the beer stores. They're actually moving it onto shelves in more dominate places in their stores. Obviously, depending on how you view liquor commissions and government-run operations...I just wondered if you would have a better shot in Alberta with everybody having access to beer and a more open market, versus having a market controlled by a government agency.
11:55 a.m.
President, Brewers Association of Canada
Yes. Competition is good. I think here in Ontario there certainly is a lot of competition between The Beer Store and the LCBO, but I would say that the LCBO does a lot to complement the category.
11:55 a.m.
Conservative
The Chair Conservative Merv Tweed
In your last comment you mentioned something about a new definition for beer.
11:55 a.m.
Conservative
11:55 a.m.
Conservative
The Chair Conservative Merv Tweed
At any point in time you feel comfortable sharing it with the committee.... At the end of the day, we will be making recommendations.
11:55 a.m.
President, Brewers Association of Canada
I'd be happy to share that with the committee.