Temporary Wholesale Pricing Model for Liquor Licensees Announced
The provincial government has approved a temporary wholesale pricing model that will allow liquor licensees to purchase beer, wine and spirits at reduced cost. This measure will provide financial support for businesses like restaurants, bars and tourism operators with liquor licences. It will be in place from the end of July 2020 until March 31, 2021, when the program will be reviewed.
Currently, hospitality licensees, including restaurants, bars and pubs pay full retail price – wholesale price, plus a retail markup set by the Liquor Distribution Branch (LDB) – on all liquor purchases. The new model will have licensees pay only the wholesale price of the products they order. This will increase the margins on liquor sales and provide valuable cash flow into the business during the COVID-19 pandemic and recovery.
The Burnaby Board of Trade applauds the provincial government on making this move to support the bottom-lines of our restaurant and hospitality sector.