BC Craft Brewers Guild Opposes Privatization of BC Liquor Warehouse

May 23, 2012 (Kelowna, BC) - In response to the governments recent announcement that they plan to privatize the BC Liquor Warehouse system, the BC Craft Brewers Guild is expressing its concern about the future of the provincial system, and are fully opposed to this initiative. The government has not consulted with the BC Craft Brewers Guild on this program, but rather they have talked to large producers who do not even use the system. says BC Craft Brewers Guild Chairman, Tod Melnyk. The Guild cannot support privatization of the BC Liquor Warehouse when this initiative is creating a private monopoly. We have spoken with industry constituents that will be directly impacted and they have provided overwhelming support to stop this initiative. The BC Craft Brewers Guild is concerned that this initiative appears to replicate the Alberta liquor distribution model where there have been signicant issues. The potential increase in pricing which will impact consumer spending, and therefore directly impact production in BC is also of utmost concern. The government seems to be rushing this through without any regards for small business in British Columbia. With over 50 breweries and brew pubs we provide real jobs in BC cities and towns, and this will have a direct effect on all of us, continues Melnyk. There has been no transparency or consultation with the Guild, and we have yet to see a business case that supports this initiative or demonstrate how this will benet the province. In February 2012, the government announced that it would conduct a Request for Proposal to approach the private sector with an opportunity to provide a more modernized and cost effective way to warehouse and distribute liquor in British Columbia. The RFP recently came out, and Proponents (bidders) are being asked to develop a proposal that would encompass warehousing of liquor products currently warehoused by the LDB (all spirits, all imported wine, a portion of beer, cider, coolers and BC wine), the warehouse replenishment

process, distribution of warehoused products to government liquor stores (GLS), and distribution of warehoused products to wholesale customers that are serviced out of the LDBs wholesale customer centres in Vancouver and Victoria. About The BC Craft Brewers Guild In 1997, a group of BC Craft Brewers got together for the purpose of establishing a non-prot, cooperative trade organization committed to the promotion of the Craft Brewing Industry through legislation, education, public awareness, and the responsible use of our products.

- 30 For more information, please contact: Betsy Cooper b*co communications T: 778-229-4947 E: cooper@b-co.ca