If you’re a brewer in Ontario you are probably weighing the changes that The Beer Store proposed yesterday. I’d like to review them for you.
First of all, there’s the concept of ownership. On The Beer Store’s conference call last night Ted Moroz made much of the idea that by offering ownership to Ontario Breweries, we would be going back to the way The Beer Store was intended to be; that we would be reclaiming its heritage.
The offer is a snare and a delusion. The Class E and Class F shares that are on offer do not buy you a stake in the company. You do not get a stake in the capital of the organization. They simply buy you the ability to vote for a representative on The Beer Store’s board. Now, it is worth pointing out that the three positions offered by The Beer Store on their board amount to 20% of the total board vote. There is no feasible situation in which Molson and Labatt will vote against their own interests in your favour. Your three board positions are therefore entirely meaningless. It is pointless busy work. Do not fall under the sway of the idea that your brewery’s President might gain status by being on the board. It’s an empty seat only a fool would covet.
Secondly, much was made of the idea that “owners” would be given five free store listings for two products. The initial product fee would be waved and also the listing fee for the five Beer Store locations nearest you. Let us do the math on this. The listing fee is something like $2650.00 and the per store fee is something like $230.00 per store. They are offering you a one time concession of something like $7600.00 in the hopes that you will stop pressing for reform.
Let me explain something about the changes they are proposing. They are founded in a deep arrogance. They believe that by giving you some crumbs that they will be able to keep the whole loaf. They think of you as dogs to be fobbed off with scraps.
The worst part of The Beer Store’s offer is that it is calculated to divide you. They believe that some one of you will want to claim the role of board member. They believe that you will turn on each other for $7600.00. That’s the amount of money The Beer Store believes will sway you. They want you to be so excited about their $7600.00 that you forget the following key detail.
You will still be in the thrall of a system that has disregarded you until this moment. The Beer Store offers you these scraps in order to prevent having to make any more concessions. They hope that it will be enough. They will not change. Your input will be disregarded. Your stock will not be displayed in the front of the store. You will not be treated equally. They have had thirty years to change the business model. They pretend to do so now only under duress.
We are at a crossroads. You have the opportunity to think of the future of your brewery. There is every possibility that you will have your own stores in the near future. That you will prosper in business and be a scion of your community. That you can build a system of your own and with it bolster the economy of a province that sorely needs the aid. That you can achieve your dream of building a business that might live on in your family.
The Beer Store would have you sell your dreams, would have you sell your future, for $7600.00
The Beer Store did not consult with the Ontario Craft Brewers about these changes. They did not consult with the Provincial Government. They believe that this will be enough compromise to bring you to heel. They believe it will stop you in your tracks.
Let me tell you something. It’s not the size of the dog in the fight. It’s the sheer bloody number of dogs in the fight. They are worried enough to offer these concessions unprompted and it’s because they fear there is worse coming. They know that the number of brewers that have been maltreated by The Beer Store has increased to the point where their very existence is in jeopardy.
This would be a good time to take advantage of your numeric superiority. Stand together. Make some noise with your Members of Provincial Parliament. Let them know that the time for change has come. Let The Beer Store know that your dignity, your integrity and your future are worth more than the pittance they offer.
Do not ask what they will give you. Ask what you can take from them. It may very well be everything.