In response to Bill 11, which amends various provisions primarily for the purpose of reducing regulatory and administrative burdens, representatives of the spirits industry and the food retail sector welcomed the government’s willingness to simplify the regulatory framework, but deplored the fact that their request to expand the sale of ready-to-drink (RTD) spirits in supermarkets and convenience stores was not accepted.
Currently, spirit-based RTD beverages must be sold at the SAQ, while malt, wine and cider-based beverages, despite having comparable alcohol content, are available in grocery stores and convenience stores.
This arbitrary distinction, based solely on the manufacturing process, deprives consumers of fair access and creates a major competitive distortion at the expense of spirits producers. Therefore, Spirits Canada, the Union québécoise des microdistilleries (UQMD), the Association des détaillants en alimentation du Québec (ADA), and the Retail Council of Canada – Quebec are asking the Quebec government to promptly rectify this situation.
Clear support from Quebecers
A recent Léger poll conducted on behalf of Spirits Canada revealed overwhelming support among Quebecers for the sale of RTD spirit-based beverages in grocery stores, supermarkets and convenience stores. Among consumers of these products, 91 per cent of regular consumers and 77 per cent of occasional consumers say they are in favour of this change.
“The message from Quebecers is very clear: they want choice, consistency and fairness,” said Cedric Salibi, senior vice president, policy and analytics at Spirits Canada. The alcohol content of RTD spirit-based beverages is comparable to that of other alcohol-based beverages and offers unparalleled diversity. It is time to modernize outdated regulations and allow the sale of RTD spirit-based beverages in grocery stores and convenience stores in Quebec.”
A fair measure to support local producers
The UQMD supports this reform, which would strengthen Quebec’s domestic spirits sector and contribute directly to the economic vitality of the regions. “According to a study conducted earlier this year by the UQMD, the sale of RTD beverages in grocery stores and convenience stores would generate $15.1 million in additional revenue for our members,” said its president, Nicolas Bériault.
“However, at present, RTD beverages with the same alcohol content are sold through two different sales channels simply because some are spirit-based and others are malt- or wine-based. It makes no sense. Consumers buy a container and an alcohol content, not a list of ingredients. This kind of regulatory easing would offer a great opportunity to modernize an outdated law in our sector.”
Strong support from the distribution sector
In addition to the UQMD, the two main retail trade associations have expressed their support for expanding their offerings to include RTD spirit-based beverages in the same way as other categories of RTD beverages. “Quebecers’ shopping habits have changed over the past few years; this is the natural evolution of a vibrant market,” said Michel Rochette, president of the Retail Council of Canada – Quebec.
The spirits segment has grown significantly, both in terms of quality and reputation, in Quebec and elsewhere in the country. In this context, it is only natural that grocery store offerings should adapt as well. The arrival of RTD spirit-based beverages would be a logical extension of the current offering and would help to rectify a situation that has become difficult to justify.
Pierre-Alexandre Blouin, president and CEO of the ADA, says he is delighted that Quebecers are open to expanding the sales networks for these products. “If there is one type of business that listens to its customers’ needs, it is grocery stores. The survey conducted for Spirits Canada confirms that consumers want greater and more convenient access to these RTD beverages, and as local stores, grocery stores are ideally suited to meet this demand,” said Blouin.
