The definition of the word “innovation” in Larousse reads as follows: “A process of influence which leads to social change and whose effect consists of rejecting existing social norms and proposing new ones. »
This is precisely what is missing in the alcohol distribution and production regime in Quebec, including the maintenance of the SAQ’s monopoly, invariably protected by the governments in place regardless of their color or their electoral commitments. The government machine succeeds, mandate after mandate, in convincing the executive of the benefits of a public monopoly, the only justification of which today can be summed up in the sums of money it brings to the government.
This status quo, which perpetuates an archaic system created in 1921 in reaction to prohibition in the United States, which hinders the growth of local producers, distributors and restaurateurs, does not constitute the best profitable public policy for society.
The recent example of the Boire restaurant which was briefly closed solely due to a vague and useless rule (the proportion of food purchased per bottle of wine sold having been deemed too low) clearly demonstrates to what extent the current system slows down the innovation, business opportunities and the variety of offerings for customers.
A recent survey by the Canadian Federation of Independent Business (CFIB) shows that the majority of Quebec SME managers want options to open up the market to be evaluated. In fact, 72% of them believe that private retailers should be able to sell the same alcoholic products as the SAQ, 74% think that alcoholic beverages sold directly by producers should not be subject to SAQ taxes and surcharges. . Finally, 82% believe that the company should do more to promote local products in its branches.
Allow a parallel offer
The objective is not to privatize the SAQ or to abolish it, but simply to allow the development of an alternative parallel offer.
We are not talking here about the provision of services to citizens such as health or education, nor about a strategic market such as electricity production. It’s just a wine and alcohol seller! Is this really the role of the State?
It should be understood that alcohol – other than beer and cider – is taxed by four distinct taxes (GST, QST, federal excise tax, provincial alcohol tax), in addition to being subject to an increase of 145% on average (gross margin) by the SAQ. These high prices discourage quality consumption, inflate restaurant bills and hinder the development of products made in Quebec.
We can very well protect the public against the harm caused by alcohol and generate tax revenue without imposing a monopoly, as is the case for cigarettes or pollution for example.
The current regime disadvantages the production of Quebec winegrowers and distillers. What’s more, the outdated rules of the Régie des jeux et des alcools undermine the efficiency of their operations (including transportation), just as they hinder innovation among distillers.
However, all these local producers contribute greatly to the economic and agro-tourist vitality of the regions, generating spinoffs throughout Quebec and tax revenues for taxpayers.
The opening of stores specializing in wines and alcohol would expand the choice available to consumers (all these very numerous products that the SAQ does not want to sell), while offering more original, innovative and dynamic customer service. We could think of a store specializing in whiskeys or natural wines for example. This would also facilitate the visibility and distribution of products from here.
The growing success of restaurateurs who sell wine bears witness to this: if consumers favor them, it is because they find something there (product, service, discovery, advice) that the SAQ does not offer. We also see it in all these microbrewery and Quebec wine shops that have emerged throughout Quebec. Why not generalize this system to other products?
Such an opening would stimulate local commercial dynamism, again with fiscal benefits for governments. Without forgetting that this healthy competition would lead the SAQ to become much more efficient and reduce its production costs.
The art of eating well is booming in Quebec. We see this particularly in the field of wine and alcohol through the level of knowledge and the growing interest of consumers towards original and quality products.
We must therefore respond to this enthusiasm with a more adapted and flexible system, better corresponding to the diverse tastes and requirements of this Quebec clientele.
In summary, it is high time to seriously reassess the entire regime affecting the production and distribution of alcohol in Quebec, including the monopoly, rather than remaining on an old, outdated model that kills innovation.
What do you think ? Participate in the dialogue
reference: www.lapresse.ca