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The Evolution of BC Liquor Laws Legal Issues Affecting the BC Wine Industry Mark Hicken, Vintage Law Group November 2018. Penticton, BC Introduction Liquor Regulation in BC - Have to Trace Back to Prohibition Uniquely North
Mark Hicken, Vintage Law Group November 2018. Penticton, BC
✤ Liquor Regulation in BC -
Have to Trace Back to Prohibition
✤ Uniquely North American
from Europe.
✤ BC Prohibition – reaction
to “Wild West” situation – lasted from 1917 to 1921
✤ October 21, 1920: BC
voted to repeal Prohibition.
✤ June 15, 2021: Repeal of
Prohibition and Beginning
System
✤ No alcohol vs. tightly controlled
alcohol
✤ Morality based - starting
mentality was significant control
✤ No distinction for wine ✤ Wine = Alcohol
Alcohol = Danger Danger = Strict Regulation
✤ Tightly restricted retail system ✤ Limited access to other
Canadian markets (interprovincial shipping)
✤ No conventional wholesale
discount system
✤ Restaurants/Bars ✤ Strange rules over the
decades
✤ Food/liquor ✤ Entertainment ✤ Operations
✤ Zero wholesale discount
✤ Operations as “agent” of the
LDB
✤ Land Based vs. Commercial
Wineries
✤ Restrictions on LBW ✤ Regulation through LDB
manufacturer agreements
✤ VQA, GIs, Packaging ✤ Winery Terms of License
✤ Pricing & Inducements ✤ Tied House Rules ✤ Advertising & Promotions
✤ Tasting Event Rules ✤ Off-Site Tasting Rooms ✤ Farmers Market Tastings ✤ Picnics ✤ Special Occasion Permits ✤ Caterers
Statutes: Liquor Control and
Licensing Act, Liquor Distribution Act, Food & Ag. Products Classification Act
Regulations “Policy”: e.g. LCLB Manuals Terms and Conditions of License Other: LDB Manufacturer
Agreements
Griffiths Report, 1929. Brewery
cartel and political influence.
Stevens Commission, 1952. Lack
issues, monopolies.
Morrow Commission, 1970.
Liberalize liquor policy, allow advertising, trade practices.
1975. Separation of licensing
and distribution in regulatory structure.
✤ 1978. Promotion of BC Wine – policies
introduced.
✤ Jansen Policy Review, 1987. Sampling,
sponsorship, advertising. Responsible Service.
✤ Surich Policy Review, 1999. Support for
hospitality industry, licensing reform – focus on public safety.
✤ Privatization, 2002. ✤ Retail & Hospitality changes, 2010. ✤ Yap Policy Review, 2013-14. 74
recommendations.
✤ Interprovincial Shipping
✤ Comeau ✤ Steam Whistle
✤ Federal labeling laws ✤ Trade issues
✤ Tremendous growth in BC wine
industry
✤ Regulatory exemptions:
✤ Direct delivery system ✤ Preferential treatment on LDB
markup
✤ BC-only retail stores
✤ Trade issues, consumer issues
✤ USMCA - Wine in Grocery ✤ USMCA – Alcohol Annex ✤ WTO Challenges
✤ Business Technical Advisory
Panel and “Hicken Report”, 2018-19.
✤ 24 Recommendations. ✤ Process:
✤ Initial Engagement (22
stakeholder groups, 4 health
winery)
✤ Panel Meetings ✤ Report with Recommendations
(available on LCLB web site)
✤ Recommendations:
✤ LDB Distribution ✤ LDB Data Sharing ✤ LDB Governance ✤ LDB Retail Mandate
✤ Recommendations (cont’d):
✤ Hospitality Price/Discount ✤ Licensee-Licensee Sales ✤ Health & Social Resp. ✤ Manufacturing & Licensing ✤ LCLB Fees
✤ No longer a moral issue ✤ Focus on public safety and
health
✤ Current regulatory directions:
✤ Government revenue ✤ Encourage economic activity ✤ Consider business effects ✤ Address problem consumption
and behaviours
✤ Avoid influence issues
✤ Post-prohibition restrictions were
extensive.
✤ We have come along way. BC
producers obtained exemptions from regulation.
✤ Plenty of potential changes
ahead.
✤ Further growth of BC food and
wine culture.
✤ Mark Hicken ✤ Vintage Law Group ✤ @markhicken ✤ T 604 868 1375
E mark@winelaw.ca W www.winelaw.ca