Posted on 11/06/2008 7:53:31 PM PST by DeaconBenjamin
OTTAWA - The insatiable demand for scotch whisky in China, India and Russia has tipped three popular brands from the shelves of Ontario liquor stores, and likely will drive up the prices of popular single-malts in several provinces.
Johnnie Walker Green Label, Black & White Blended Scotch Whisky and Bell's Scotch Whisky will no longer be available in Liquor Control Board of Ontario (LCBO) outlets once current supplies are gone, probably by year end, a spokesman confirmed Wednesday.
The sobering news comes after liquor distributor Diageo Canada, a branch of the world's largest alcohol group, told the LCBO that if it wanted to continue to sell many of its products it would have to pay more to compete with growing markets abroad.
The LCBO agreed to meet Diageo's demands in some cases, but apparently balked when it came to the three brands to be discontinued.
That also means the Diageo-distributed products the LCBO will continue to sell likely will go up in price by amounts that will vary, depending on the brand. Some of those brands include high-end single malt scotches such as Glenkinchie, Dalwhinnie, Oban, Talisker, Lagavulin, Gragganmore and Brora, as well as Johnnie Walker's Red, Blue, Gold and Black labels.
Some of the more expensive brands are made by small distilleries that can only produce limited quantities, which drives up demand and prices.
"Essentially it was out of our control," LCBO spokesman Chris Layton said Wednesday. "Diageo came to us and said the demand from places like China, India and Russia was outstripping its ability to supply them."
He said Diageo is simply selling to the buyers willing to pay the most.
It could be worse. In several other provinces, including New Brunswick, Prince Edward Island and Nova Scotia, even more brands no longer will be available. New Brunswick is losing 11 brands, for instance.
The move comes as burgeoning middle classes in China, India, Russia, South Korea and Vietnam look for new ways to spend their money.
According to a British economic analysis published in March, China's spirits market alone is expected to be worth $50 billion US by 2011. India's market is growing by more than 15 per cent a year, and could exceed $35 billion by the end of next year.
The sheer size of those markets can make it difficult for Canadian liquor buyers and sellers - even those as large as the LCBO, whose total alcohol sales are worth more than $3.5 billion annually - to stay in the game.
"It's the bad side of success," Frank Scott, owner of an award-winning whisky bar in Fredericton, told New Brunswick's Telegraph-Journal newspaper. "Scotch has always been seen as a success product and with incomes growing, people want the American dream."
Scott believes that London-based Diageo, which has been focusing on Asia-Pacific markets for the past few years, eventually will re-offer some of its products in Canada. But he thinks drinkers might have moved along to new brands.
Layton said that even with the cutbacks, the LCBO will continue to sell more than 200 varieties of scotch, the largest selection in Canada.
As a stockholder in Diageo, at least there is some good news this week...thanks for posting..
I’m partial to J&B, and never need an excuse to stock up!
However, it also will make for good barter when the bottom inevitably drops out of our economy due to 0bamanomics.
Oh my, we’re at Peak Scotch are we?
Distill here! Distill now!
Are there some kind of price controls in Canada on scotch?
Oh well, at least we are likely to be buying Havana Club Rum soon enough.
Liquors sales are socialized in Ontario, with the predictable high prices and poor selection. Alcoholic products are 1/2 price over the border in NY State.
The Liquor Control Board of Ontario (LCBO) is a provincial Crown corporation established in 1927 to sell liquor, wine, and beer in Ontario through a chain of retail stores. Such sales had been banned outright in 1916 thus, the creation of the LCBO marked an easing of the province’s temperance regime.
LCBO stores are generally the only stores allowed to sell hard liquor in Ontario. Currently, the LCBO is one of the world’s largest single purchasers of beverage alcohol products.
I predict a resurgance in moonshine production
I think the embargo comes down with Castro is dead or sooner. Maybe go back to the good old day of the 50’s before the revolution.
Well, perhaps the Kennedy family is celebrating. As I understand, they own the U.S. distribution rights to Cutty Sark - which isn’t a great brand, but it does sell well.
Again, just from what Im told, they have the same rights for Bacardi.
LOL :) :)
I blame my uncle. He saw a sign that said “Drink Canada Dry” and he said he’d be willing to give it a try.
> Are there some kind of price controls in Canada on scotch?
Yes. As a former Canuckistani, the liquor in Canada is probably the most regulated in the world. To add to the nightmare of being a socialist country, the govt controls the distribution of liquor as it seems fit and just to let you know how draconian it is over there, especially in my province of BC.You cannot buy liquor anywhere or any store like in America. You have to purchase them at govt-owned “distribution branches” with fully-unionized workers. Want a 6 pack of Budweiser? Try $14....don’t ask me about the prices, who do you think has to pay for the unions? Plus, they close at 9 pm.
Someone please find and post the link but an industry study last year showed that India alone sold 150% of the ENTIRE supply of Scotch made in Scotland....
(for those of you that went to Texas A&M, this means, that India is selling fake Scotch)
Dear Canuckistani,
You have it EASY compared to Texas where we have to drive to poorly lit stores in Ghettos to buy liquor because the darn liquor lobby here in Texas wont let us buy liquor in grocery stores.
I would prefer to fight my way in Compton that pay $14 for a six pack...
that’s $14 PLUS 14.5% TAX (GST AND PST..P stands for provincial). Here in L.A. it’s $5 for a six shot. What a great country..
Besides, I thought Texans are armed to the teeth?
Yes, we Texans are armed to the teeth, but it does me no good to save $5 on booze when I have to spend $20 on ammo to kill the thugs
Good point. Now with Obama in charge, save the ammo and get ready for 4 years of your freedom slowly getting peeled away.
Good Grief . Budweiser .
Come to Ontario and try a Lakeport (Lakeport Brewery) or a Laker (Brick Brewery) @ $7.95/6pac . LCBO offers 340 different beers from 40 countries . In Quebec you can go to a Government store or any convenience / grocery store and get your booze.
the liquor in Canada is probably the most regulated in the world add to the nightmare of being a socialist country
I doubt it . The USA has several Liquor control boards all doing the same sales and exercising the same control. What passes for Canada socialism is alive and long established in the USA . Just because you don't know about it doesn't mean it doesn't exist.
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