Anybody Can Open A Genuine 100% Beer Store In Quebec, Without (Almost) Any Food Offering!

You may have already dreamed of opening a beer store in Quebec that specializes ONLY in microbrewery beer and wine, WITHOUT any food.

As we all know, microbrewery beer is a rapidly growing category: the variety of quality products has become staggering over the years and it comes with higher profit margins (not to mention the undeniable advantage of being in a position to taste them once in a while).

But here it is: because of the famous 51% rule, you’re having second thoughts.  This is the rule in which a convenience or grocery store’s food inventory must equal 51% of more of the total store’s inventory for it to obtain the right to sell beer and wine in Quebec.

This is the same rule that prevents Walmart from selling beer in Quebec because its stores’ food product offering is less than 51% (see article here).

You think to yourself: “I would love to start such a business, but as I will be limited to only half of the inventory (because 51% must remain food product), I won’t be able to offer so much beer after all”.

And so, big mistake!

Like many retailers, you probably have not paid attention to the regulation fine print. But don’t worry, you are not alone.

Our mission at DepQuébec is precisely that: to unravel the regulatory mysteries that may have eluded you, by lack of time.

However, this key regulation is a perfect example of confusing rules, hence the need to pay attention!

Sell as many beers as you want … millions if you want, with only three food items in store to meet regulation requirements!

Here is what the regulation actually requires to obtain a valid RACJ alcohol license, allowing you to sell wine, beer and other alcoholic beverages:

  • 1) Minimum of food products: you must have at all times in store, on the shelves, for at least $ 3,000 of food products calculated at the retail price;
  • 2) Non-food product ceiling: The retail value of all other non-food items you offer (tobacco, lottery, magazines, fireworks, souvenirs, etc.) must not exceed 49% of your total inventory, EXCLUDING ALCOHOL (very important);
  • 3) Unlimited alcohol: Once these two previous conditions are met, you can sell as many kinds of beer as you want: 1 million brands if you wish at unlimited quantities! There is no limit.

In other words, if you place the following items in store and permanently, you will be 100% compliant with government regulation:

The two products shown above are currently available on Amazon.ca at the prices indicated (see here and here).

Therefore, you end up with $ 3,099.05 in permanent food offering in the store, because no one will ever be fool enough to spend that much money on these products (in fact, you may want to keep them for your retirement).

That being so, you will be 100% compliant! This is totally legal. There is no requirement indeed in the regulation about quantity or variety of food offering: only retail value is considered when filling the license form.

No government official can deny you a license and no inspector give you a fine if you comply strictly with the regulation.

If you are skeptical, take a look at the permit application by clicking here: it is clearly explained. All you have to provide is the retail value of the food and non-food products you offer. In addition, that has even been confirmed to us over the phone.

Thus, keeping these three items in a glass cabinet and locked up, all the rest of your store can be filled up with beer and wine without any restriction other than the usual ones, especially for wine (only certain types of wine can be sold in grocery stores).

Many retailers have figured this out, but not all

This clarification is important because several c-store owners that have specialized in microbrewery beers are not fully aware of the regulation true requirements.

Those who have opened “beer stores” know better: some offer lots of food and have no issue meeting the $3,000 minimum while others find creative ways to limit the shelf space occupied by food so to focus solely on their alcoholic beverage offering.

To comply with the $ 3000 floor of food offering, some opt for an impressive assortment of hot sauces.
Others will put emphasis on condiments and delicatessen, which goes well with craft beer.
Others will still rely a lot on food to complete their offering with cold cuts and fine cheeses. Tempting, isn’t it?

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