The cabinet minister responsible for Alberta’s liquor industry is calling out a four-litre plastic jug of vodka being sold for under $50, and says he is looking at intervening in prices. THE CANADIAN PRESS/Jason Franson
An Edmonton-based distillery has decided to halt the production of its four-litre vodka jugs after concerns were raised by Alberta's Service Minister regarding their pricing. T-Rex Distillery stated that the public's response to the jugs has been mixed since images of them surfaced on social media, with approximately half of the reactions praising the jugs for their "innovation and convenience."
However, others, including Alberta's Service Minister Dale Nally, have expressed reservations about the low price of $49.95, deeming it irresponsible. Nally indicated that he was considering intervening in the matter.
T-Rex Distillery clarified that the four-litre vodka jugs were a private-label product manufactured and bottled for Super Value Liquor, as per the customer's requested price. Although Alberta Gaming, Liquor, and Cannabis (AGLC) stipulate the wholesale prices for retailers, there are no guidelines provided by the agency regarding pricing on store shelves.
Federal regulations govern alcohol labeling and packaging across Canada, and Nally assured that the jugs comply with these regulations. However, he emphasized that they do not align with the values of Albertans, stressing the importance of responsible pricing.
The Ministry of Service did not immediately elaborate on the specific actions the government might take regarding pricing. The plastic jugs, resembling four-litre milk containers, sport plain labels with the words "value" and "vodka" against a yellow background.
Sunny Bhullar, the manager at Edmonton Super Value Liquor, disclosed that the store had reduced the price of the jugs from $60. Bhullar emphasized the store's commitment to serving customers responsibly and providing quality products at fair prices. He expressed concern about the potential introduction of minimum prices or a floor price, fearing it would disadvantage independent stores compared to larger chains.
T-Rex Distillery revealed that its vodka jugs had been available for sale for approximately a year and emphasized that they had been reviewed and approved by AGLC. As of the announcement, the company had not received any communication from AGLC, the government, or the minister.
The distillery asserted that Alberta's craft distilleries had been grappling with unsustainable pricing practices since AGLC removed the requirement for distilleries to produce at least 80% of their own spirits in-house a few years ago. This rule change enabled anyone to blend and sell bulk-purchased vodka without needing distilling equipment, leading to a decline in prices.
AGLC did not respond immediately to inquiries about regulations concerning the production of four-litre vodka jugs or the rules governing craft distilleries.
Nally introduced an omnibus red-tape reduction bill, aiming to clarify his authority to set liquor prices. He expressed his intent to scrutinize such matters if the bill is enacted, as he believes that a four-litre plastic jug of vodka does not contribute to the quality of Alberta's distillery industry and constitutes irresponsible pricing.
T-Rex Distillery highlighted the challenges faced by craft distilleries due to the absence of pricing regulations, which resulted in unsustainable pricing practices. They emphasized the need for regulatory adjustments to ensure fair competition and sustainability in the industry.
The AGLC's response to questions about the regulations surrounding four-litre vodka jugs and craft distilleries is pending.
