Economy

Ford plans to deliver on buck-a-beer promise

Ford plans to deliver on buck-a-beer promise

Andrea Horwath, the leader of Ontario's New Democratic Party, slammed Ford for keeping his promises regarding beer while turning his back on the 4,000 residents who were relying on the unconditional payments to buy healthier food, access childcare or go back to school.

The program will see the government-set minimum price of beer drop from $1.25 to $1.00 before tax and deposit.

The Progressive Conservative plan will lower the minimum price of a bottle or can of beer with an alcohol volume below 5.6 per cent to $1 from $1.25 starting August 27 - a few days before the Labour Day weekend. The minimum wage hike to $14 per hour has also played a role in pushing up beer prices, as has increased prices on the ingredients needed to brew.

To encourage the province's breweries to lower their prices, Ford launched the 'Buck-a-Beer Challenge'.

The PC government is calling the move the "buck-a-beer challenge" and said the move is aimed at creating more competition in the market among brewers.

Ontario Premier Doug Ford is expected to roll out the provincial government's buck a beer plan when he visits a brewery early today in Picton, Ont. "Does he think reducing the beer price floor from $1.25 to $1 will solve real problems?" Mothers Against Drunk Driving worries lower prices may lead to increased consumption. "I'd be shocked if you saw a lot of breweries jump on this buck-a-beer thing".

"If the government wants to help society", he says, "they could start by putting a minimum price on other things that are more important to people who could use a helping hand".

The LCBO said in a statement Tuesday night it will work on in-store displays, limited time offers and advertising with any beer supplier who agrees to meet Ford's challenge to reduce the price of beer.

The People's Pint, a brewery based in Toronto, said it would not be joining what it called a "race to the bottom" on Twitter. I can confidently say that a buck-a-beer won't deliver that.

A partial or year-round promotional arrangement for even one brewer selling buck-a-beer in the province could easily represent more than $100,000 in lost revenue to the LCBO.

It is unknown if any additional Ontario craft breweries will participate. This typically tends to cost more, but it allows us to make the best beer possible, instead of making the cheapest. Ford would not confirm or deny the reports, saying only that an announcement would come later.


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