FFWD Weekly
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Booze by Brian Read The Ship and Anchor Pub recently posted a notice explaining why it will not serve products manufactured by either Labatt or Molson, and Ship owner James Ballantyne is investigating the possibility of criminal charges against these breweries. It all stems from a recent crackdown by the Alberta Gaming and Liquor Commission (AGLC) on contraventions to the Gaming and Liquor Act. These regulations govern the way alcoholic beverages are marketed in Alberta. Section 63(2) prohibits retailers from entering into agreements to receive merchandise for selling liquor from suppliers. It's designed to promote consumer choice by preventing breweries from offering incentives to a pub in return for carrying their beers. The Ship and Anchor is charged with making such agreements with both Labatt's and Molson's – at the same time. "I just assumed it was a mistake," says Ballantyne, "since we've always based our beer selection on customer demand. We contacted both sales representatives, Greg Paulgaard from Labatt's and Sean Blix from Molson's, and they assured us that no such agreements with The Ship ever existed." Upon contacting the AGLC, however, The Ship was informed that the information leading to these charges came from the breweries themselves. "What makes the whole thing particularly ironic," says Ballantyne, "is that we have consistently resisted such agreements. For example, we decided a while ago to carry some Belgian beers distributed by Olands, a sister company to Labatt's. The Olands representative informed us that we would first need to satisfy some conditions. We were given a list of certain beers we could not carry and certain other ones (which included Labatt's products) that we must carry. When we refused to accede to these demands, they eventually said they'd supply the beers anyway, but later reneged on the deal, stating that they already had an exclusive contract with Melrose. In protest, we took all Labatt's products off draught for about six months." The AGLC agreed to reconsider the present charges if The Ship obtained letters from Labatt's and Molson's rescinding the accusations. Sean Blix, from Molson's, provided a letter immediately. "Greg Paulgaard, the Labatt's sales representative, also acknowledged that no agreement existed between us to carry their beer in exchange for promotional merchandise," says Ballantine. "In fact, he stated this in front of three witnesses, but now Labatt's claim they did have an agreement with us, even though the only person from that company we've ever dealt with has denied it. Molson's have also backed away from Sean's letter, saying it was ‘unauthorized.’" No one at Molson's could be reached for comment. Greg Paulgaard, from Labatt's, would not confirm or deny for Fast Forward that he had provided merchandise to The Ship in return for them carrying Labatt's beer, but rather referred me to Cal Bricker, the director of public affairs. "Labatt's never said this type of agreement existed," says Bricker. "We just provided information regarding what we gave to The Ship and what we received. The linkage was presumed by the AGLC, not by us." When asked why the letter could not then be provided, Bricker said: "We've already agreed to the charges and paid a fine. We can't amend the information we gave to the AGLC now. Besides, whether we thought there was an agreement or not is irrelevant, since it was the AGLC who made this assumption." Ballantyne feels the AGLC may have cut a deal with the breweries, offering reduced penalties in return for information about agreements with licensees, but Dave Henning in the AGLC communications department denies this. "No incentive was offered to the breweries," says Hennig. "Their right to carry on business in Alberta is governed by these regulations, and therefore it's their duty to cooperate with the AGLC when asked." The Ship and Anchor is appealing the charge with the AGLC. In the mean time, none of its 48 beer taps are carrying Molson or Labatt beers. Approximately 500 licensees have been fined for violations of the Gaming and Liquor Act. In addition, Molson's was fined over $700,000, and Labatt's over $500,000. Details are posted on the AGLC website, at: http://www.aglc.gov.ab.ca/board/index.html.

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