{"id":104666,"date":"2017-08-30T11:45:56","date_gmt":"2017-08-30T15:45:56","guid":{"rendered":"https:\/\/depquebec.com\/?p=104666\/"},"modified":"2017-08-30T11:59:28","modified_gmt":"2017-08-30T15:59:28","slug":"wine-depanneurs-sell-25-of-the-volume-for-15-of-revenue","status":"publish","type":"post","link":"https:\/\/depquebec.com\/en\/wine-depanneurs-sell-25-of-the-volume-for-15-of-revenue\/","title":{"rendered":"Wine: Depanneurs Sell 25% Of The Volume For 15% Of Revenue"},"content":{"rendered":"<p>The state monopoly on the sale of wines and spirits in Quebec is increasingly questioned and more frequently criticized.<\/p>\n<p>Recommendations of the <a href=\"http:\/\/clubdgv.blogspot.ca\/2016\/05\/la-section-du-rapport-2016-de-la.html\">Auditor General<\/a>, the <a href=\"http:\/\/www.lapresse.ca\/actualites\/national\/201508\/31\/01-4896640-commission-robillard-la-saq-et-revenu-quebec-dans-le-collimateur.php\">Robillard commission<\/a>\u00a0and independent studies such as <a href=\"http:\/\/clubdgv.blogspot.ca\/2016\/05\/monopole-inc-pour-une-ouverture-du.html\">Monopole Inc.<\/a> all point to the need of real reforms, something that many provinces like Alberta have already done.<\/p>\n<p>Why should the government take over the sale of alcohol? Isn&#8217;t enough for the state to (badly) manage education, health, road infrastructure, justice, social services and others?<\/p>\n<p>And then, why just selling alcohol? Why not food? Clothing? Sports articles? Pharmacy? The list goes on and on.<\/p>\n<p>The very existence of the SAQ, the current state monopoly, no longer has any consistency or relevance: it is purely an anachronism.<\/p>\n<p>It is still there simply because dismantling it would cause so much troubles, hence the inertia of successive governments that have other more urgent priorities to pursue.<\/p>\n<p>The resistance would likely come from the main stakeholders that are benefitting from the current system:<\/p>\n<ul>\n<li>SAQ&#8217;s management and senior management;<\/li>\n<li>SAQ&#8217;s unionized staff which enjoys much better pay and working conditions than industry standards;<\/li>\n<li>Wine agencies that do good business with the SAQ;<\/li>\n<li>SAQ partners such as \u00c9duc&#8217;alcool;<\/li>\n<li>SAQ&#8217;s suppliers (services, real estate, etc.).<\/li>\n<\/ul>\n<p>Convenience stores, on the other hand, have a tiny portion of the market of the kind that requires hard work for low profits.<\/p>\n<p>Indeed, apart from a few exceptions, they can only sell products bottled here and whose name is specifically created and exist only within their network.<\/p>\n<figure id=\"attachment_104675\" aria-describedby=\"caption-attachment-104675\" style=\"width: 894px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/depquebec.com\/wp-content\/uploads\/2017\/08\/tableauventessaq-epicerie-1.jpg\"><img decoding=\"async\" class=\"wp-image-104675 size-full\" src=\"https:\/\/depquebec.com\/wp-content\/uploads\/2017\/08\/tableauventessaq-epicerie-1.jpg\" alt=\"\" width=\"894\" height=\"207\" srcset=\"https:\/\/depquebec.com\/wp-content\/uploads\/2017\/08\/tableauventessaq-epicerie-1.jpg 894w, https:\/\/depquebec.com\/wp-content\/uploads\/2017\/08\/tableauventessaq-epicerie-1-600x139.jpg 600w, https:\/\/depquebec.com\/wp-content\/uploads\/2017\/08\/tableauventessaq-epicerie-1-400x93.jpg 400w, https:\/\/depquebec.com\/wp-content\/uploads\/2017\/08\/tableauventessaq-epicerie-1-768x178.jpg 768w\" sizes=\"(max-width: 894px) 100vw, 894px\" \/><\/a><figcaption id=\"caption-attachment-104675\" class=\"wp-caption-text\">Revenues from wine sales in convenience stores and grocery stores grew by 4.7% in the last five years, while wine sales in the rest of the network (SAQ stores, restaurants, agencies and others) increased by 8.7%, almost double (source: <a href=\"http:\/\/s7d9.scene7.com\/is\/content\/SAQ\/rapport-annuel-2015-16-fr\">SAQ<\/a>)<\/figcaption><\/figure>\n<p>In other words, the &#8220;depanneur&#8221; wine, as it is called, is this low-priced, artificially created product designed to not compete with the SAQ, which sells real labels, names and regions at any prices it wants.<\/p>\n<p>In addition, this low-level wine category requires much more handling efforts and costs for much less profits.<\/p>\n<p>According to the SAQ&#8217;s latest <a href=\"http:\/\/s7d9.scene7.com\/is\/content\/SAQ\/Communications\/la-saq\/acces-information\/documents-disponibles\/publications\/rapports-trimestriels\/SAQ_T1_2017_2018_VF.pdf\">quarterly report<\/a>, the depanneur and grocery channel sold <strong>$ 83 million<\/strong> worth of wines, compared to <strong>$ 490 million<\/strong> by SAQ branches, or <strong>15.5%<\/strong> of revenues over a period of three months, from March to June 2017.<\/p>\n<p>But in terms of volume, depanneurs and groceries sold <strong>10 M<\/strong> of liters out of <strong>40 M<\/strong>, or\u00a0<strong>a quarter of the volume<\/strong> of all the wine sold to consumers!<\/p>\n<p>In other words, convenience stores carry <strong>a quarter of the volume<\/strong> for <strong>one-sixth of revenue<\/strong>! And this, for margins much less interesting in the order of 16.5% versus the SAQ with its 135% margins and more.<\/p>\n<p>Indeed, it is high time that things change for real in Quebec. What an excellent issue for the next election!<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The state monopoly on the sale of wines and spirits in Quebec is increasingly questioned and more frequently criticized. 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