Achi news desk-
EDMONTON –
A distillery is halting production of discount four-litre jugs of vodka after the Alberta minister responsible for the province’s spirits industry called the product out for not being priced responsibly.
T-Rex Distillery says public reaction has been mixed since photos of the jugs began circulating on social media, with about half praising the jugs for “innovation and convenience.”
Others expressed concern, including Alberta Service Minister Dale Nally, who says the low price of $49.95 is “not very responsible” and is looking at intervening.
The Edmonton-area distillery says the jugs are a private label product being produced and bottled for a customer, Super Value Liquor, at the asking price.
Under current rules, Alberta Gaming, Liquor and Cannabis sets the wholesale price retailers must pay to buy products, but T-Rex says there are no rules or guidelines provided by the agency on how products should be priced on shelves.
Federal laws regulate the labeling and packaging of alcohol across Canada, and Nally says the jugs comply.
“What he doesn’t conform to is the spirit of Albertans,” he told reporters Monday.
“We believe in responsible pricing, and that’s where I think it goes wrong.”
Nally’s ministry did not immediately clarify what specific actions the government might take on pricing.
The plastic jugs, which resemble four liter milk containers, have plain labels with the words “value” and “vodka” over a yellow background.
Sunny Bhullar, manager of Edmonton Super Value Liquor, said his store has discounted the jugs down from $60.
“We make sure that we serve our customers in a responsible way,” said Bhullar in an interview.
He said the aim of the store is to provide quality products to consumers who want to buy in bulk and save money.
“Our marketing approach is that we sell at a fair price,” he said.
If Nally introduced minimum prices or a floor price, Bhullar said he would be concerned.
“In that scenario, it will be difficult for independent stores to compete with the larger chains,” he said.
T-Rex said in an email that its vodka jugs have been on sale for about a year. It also offers a T-Rex branded version of the jug, mainly for wholesale purposes, such as for bars and restaurants.
The company said the vodka jugs had been reviewed and approved by Alberta Gaming, Liquor and Cannabis and, as of Monday, T-Rex had not received any communications from the agency, the government or the minister.
“Albertan craft distilleries have long suffered from a lack of responsible pricing and, in fact, there are multiple distilleries out there that sell their spirits even cheaper than T-Rex,” the company said.
“We have often voiced our concerns with the current system to AGLC.”
Nally made his comments ahead of the introduction of an omnibus red tape reduction bill which he said would clarify he has the authority to set liquor prices.
Nally added, “If this bill passes, then this is exactly the kind of thing I will be looking into.
“I don’t think a four-litre plastic jug of vodka adds to the quality of the distillery industry we have in this province. I don’t think it’s responsible pricing.”
Nally said that with the bill, he hopes to ensure that the rules reflect what happens in practice, as the AGLC, which is responsible for overseeing the liquor industry across the province, is not increases prices without getting the minister’s approval.
T-Rex said an “era of unsustainable prices” began when AGLC removed a rule a few years ago that required craft distilleries to produce at least 80 percent of their spirits in-house, and allowed buy 20 percent or import in bulk.
That means anyone can blend and sell bulk-bought vodka without owning distilling equipment, T-Rex said. The company said it and other craft distilleries are being forced to lower their prices to stay in business, especially after investing in distillery equipment, something new companies don’t need to do.
The AGLC said it was unable to respond on Monday to questions about regulations for the four liter jugs of vodka. He did not immediately respond later in the day when he emailed questions about production rules for craft distilleries.
This report was first published by The Canadian Press on April 8, 2024.
