Premier Doug Ford announces buck-a-beer launching in Ontario this month

Premier Doug Ford announces buck-a-beer launching in Ontario this month

"We were elected on a promise to reduce red tape and put the people first", said Premier Doug Ford, who made the announcement while visiting the Barley Days Brewery."This included a promise to bring "Buck-a-Beer" back to Ontario".

The minimum price - which was hiked from $1 to C$1.25 by the previous Liberal government in 2008 - will apply to beers that have less than 5.6% alcohol content. It will go into effect on Monday August 27, 2018.

"We're going to do this smartly and responsibly", said Ford.

"We're bringing back a buck-a-beer to Ontario".

The minimum price of a bottle or can of beer is to be lowered to $1 from $1.25. "I don't know if his plan was to make the breweries look greedy or just to underscore his populist direction, but it is ridiculous", he said, adding the move ignores the shift towards more complex and well-crafted beer.

Eric Portelance, who co-owned Halo Brewery in Toronto until earlier this year, said the buck-a-beer challenge is "insulting" to brewers and distorts the market by devaluing their product. The LCBO says up to 214 of its 660 outlets could host an identical end of aisle display for roughly one month or one "promotional turn" as they call it, at a cost of $36,000 to $46,000.

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"Nobody is being forced to lower their prices and there will be no subsidies or tax handouts", Ford said, calling the move a "win-win". "The premier is asking beer producers to lower their prices down to a dollar". However, brewers are not required to charge less, and the lower minimum price is expected to exclude draft beer and excludes the bottle deposit.

"There's definitely no money in it", said Big Rig's Ladell. "The margins are so tight".

"These are normal business expenses for our stores and no costs will be incurred to either LCBO consumers or Ontario taxpayers", it said. Many Ontarians took to Twitter Tuesday to voice their discontent with the "buck-a-beer" announcement, particularly in light of the government's recent cancellation of a Basic Income Pilot project. Once upon a time, you could buy a beer for $1 a bottle.

Muskoka Brewery was one of the companies that declined to participate today.

"We are not reducing the tax level", says Vic Fedeli... which essentially says "we are encouraging breweries to eat the cost to participate in the "challenge". But, I think the first place we need to start is looking at the provincial tax structure which would be the highest component of the retail price we pay".

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