Busier stores, but lost LCBO sales: Local distillers and brewers brace for impact of strike - Action News
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Kitchener-Waterloo

Busier stores, but lost LCBO sales: Local distillers and brewers brace for impact of strike

Distilleries can only sell hard alcoholic drinks like vodka, gin and whisky attheir retail stores, in bulk to a local restaurantor through the LCBO. Butbreweries or wineries sellingcider, wine and beer have theflexibility to also sell their productsat eligible grocery and big-box stores.

More than 9,000 LCBO store employees are on strike after bargaining talks broke down Thursday

In 2018, Dairy Distillery brought a vodka distilled from milk permeate to market.
Distilleries can only sell their hard alcoholic drinks like vodka, gin and whiskey through their retail store or the LCBO. (Stu Mills/CBC)

Some distillery owners around Waterloo region are worried about how the LCBO strike could impact business.

Distilleries can only sell their hard alcoholic drinks like vodka, gin and whisky attheir retail store, in bulk to a local restaurantor through the LCBO. Butbreweries or wineries sellingciders, wines and beers have theflexibility to also sell their productsat eligible grocery and big-box stores.

Now some distillery owners are feeling concerned after more than 9,000 Ontario liquor store employees declared they will be going on strike after bargaining talks broke downbetween their union and the LCBO on Thursday night.

JD Dixon, president of Dixon's Distilled Spirits, says customerswere lined up outside their store on the followingFriday morning.

"Our store is busier, which is great to see. But now we lose all the sales at the LCBO stores. So when we wereselling our gins down in Ottawa or Windsor or in Muskoka[through the LCBO], we're not getting those sales anymore."

He says if the strike goes on for 14 days, his business could lose about $30,000 to$40,000 in sales. But Dixon is hoping an uptick in revenue at their retail store will help offset that.

"In fact, we're going to bottle more whiskey because we just sold out of our inventory," he said after the Friday morning lineup outside his retail store.

Trying to stay optimistic

Cooper Sleeman, director of sales and marketing at the Spring Mill Distillery in Guelph, says they'retrying to stay optimistic and hoping the LCBO strike pushes more people to try local brands.

"We've got staff that are going to be at the store a little bit longer. We've opened the hours a little bit longer," he said. "Depending on how long this goes, you know, we might even open it up even earlier."

Sleemansays it's difficult to tell how the strike could cut their profits.

"There's still bars and restaurants that are going to be open and we're able to supply them. We just startedour e-commerce store online.We just actually launched that like threemonths ago. Maybe there'll be more traffic that way as well," he said.

Kitchener store owner stocks up on booze in reaction to LCBO strike

3 months ago
Duration 1:34
Jordan Dolson owns Legacy Greens, a grocery store that sells alcohol in downtown Kitchener. She spoke to CBC K-W's Karis Mapp about why she ordered more stock when she heard about the LCBO strike.

Michael Weber, who owns Neustadt Springs Brewery, is hoping the LCBO strike will boost their beer sales.

"We really rely on a lot of people coming in our door," he said, adding that they only sell a couple of their beers through the LCBO with a lot more variety in their retail store.

"We're in a stage of growth which is really exciting for us. We're hoping that we get a lot more online sales. We're really trying to push that. We have our full variety of beer available online and we deliver anywhere in Ontario."

Jordan Dolson owns Legacy Greens, a grocery store that sells alcoholin downtown Kitchener.

She saysshe ordered more stock when she heard about the LCBO strike.

"I hope that people feel kind of experimental and wantto try something local and new. We sell a variety of different local products from the area," she said.

"I hope that we meet some new customers." Dolson said.

With files from Karis Mapp