{"id":111278,"date":"2018-02-15T09:15:27","date_gmt":"2018-02-15T14:15:27","guid":{"rendered":"https:\/\/depquebec.com\/?p=111278"},"modified":"2018-02-16T07:28:09","modified_gmt":"2018-02-16T12:28:09","slug":"exclusive-are-beer-stores-allowed-in-quebec-depquebec-the-regie-at-war-on-the-word-assortment","status":"publish","type":"post","link":"https:\/\/depquebec.com\/en\/exclusive-are-beer-stores-allowed-in-quebec-depquebec-the-regie-at-war-on-the-word-assortment\/","title":{"rendered":"EXCLUSIVE – Are Beer Stores Allowed In Quebec? DepQu\u00e9bec & The R\u00e9gie At War On The Word “Assortment”"},"content":{"rendered":"

An epic confrontation currently rages on between DepQu\u00e9bec,\u00a0<\/strong>a web portal dedicated to Qu\u00e9bec d\u00e9panneurs, and the legal authorities of the R\u00e9gie des alcools, des courses et des jeux (RACJ)<\/a>\u00a0\u2014 Quebec’s regulatory body granting liquor licenses to c-stores \u2014 regarding the meaning of the word “assortment” (“vari\u00e9t\u00e9” in French).<\/p>\n

Yes, you read correctly.<\/p>\n

The stakes are not trivial though: it is nothing less than figuring out if yes or no, one can legally open and operate a genuine “beer store” in Quebec.<\/p>\n

Indeed, last week DepQu\u00e9bec<\/strong>\u00a0published a rather shocking article<\/a> on the existing regulation and conditions required to obtain a liquor license for convenience and grocery stores.<\/p>\n

The portal explained, based on rigorous research, that the famous “51% food product” provision – which is very poorly understood in general – actually allows retailers to sell beer and wine without having (almost) any in-store food offering.<\/p>\n

Since the minimum of food offering required is $3,000, one only needs to keep a can of caviar at $2,500 and two bags of expensive coffee at $ 300 apiece (these products do actually exist and are on sale on Amazon.ca – see\u00a0here<\/a>) and there you go. One can sell all the beer and wine in the world without worrying for a second about ordering bananas, cheeses, bread or anything to eat.<\/p>\n

As expected, the RACJ<\/a> did not share our interpretation at all.<\/p>\n

\"\"<\/a>
DepQu\u00e9bec<\/strong> claims that current regulation allows for the opening of beer stores in Quebec as in Ontario (see photo) because a retailer only needs to hold three food items worth $3,000 to be compliant. The R\u00e9gie is fiercely opposed to this interpretation and is committed to providing us with some proof, which has yet to come.<\/figcaption><\/figure>\n

In the wake of the article, the R\u00e9gie<\/a> received “lots of inquiries” from industry people asking to confirm our well founded claims (a reaction that, you may note, reflects the undeniable impact of this portal).<\/p>\n

Last Monday, one of R\u00e9gie<\/a>‘s executives (whose name we won’t reveal) contacted DepQu\u00e9bec<\/strong> asking us to reestablish the facts.<\/p>\n

After having assured him that this would be the case if such thing was justified, an intense discussion then ensued which we will briefly summarize here.<\/p>\n

The R\u00e9gie<\/a>: There is not a chance in a thousand that we approve a liquor license for a convenience store that would only sell a can of caviar and two bags of coffee!<\/p><\/blockquote>\n

DepQu\u00e9bec: And why not? The total exceeds $3,000 in retail value. It’s the only thing that matters, retail value.<\/p><\/blockquote>\n

The R\u00e9gie<\/a>: No: it takes “an assortment of foods having a value of at least $3,000”.<\/p><\/blockquote>\n

DepQu\u00e9bec: Really? An assortment? And how many different kinds of products does “an assortment” means? Do you have a number?<\/p><\/blockquote>\n

The R\u00e9gie<\/a>: Uh … an expert will get back to you on that.<\/p><\/blockquote>\n

End of conversation. This was three days ago.<\/p>\n

So as you can see, their whole case now depends on one single vague word, “assortment”! This remains the only element that could justify a denial.<\/p>\n

Now, here is the official definition of the word “assortment” in the dictionary:<\/p>\n

Assortment: a collection of assorted things or persons. – Merriam-Webster Dictionary<\/p><\/blockquote>\n

“A\u00a0collection of assorted things or persons”. Nowhere it says a lot<\/em> of things: just a collection of\u00a0<\/em>things. In a food offering made of a can of caviar and two bags of coffee, there are three different items separated into two different categories. Technically speaking, we are indeed in the presence of a collection of food products, because there are more than one.<\/p>\n

Now let’s suppose that the RACJ<\/a> denies a liquor license application to a c-store owner that has followed our advice and that he decided to go to court to reverse this decision.<\/p>\n

The R\u00e9gie<\/a>: Your Honor, “an assortment of food products” means a display of multiple food items, not just a few. This application can’t be approved even if the total retail value actually exceeds $3,000.<\/p><\/blockquote>\n

The Defense: Your honor: this is totally ridiculous. Imagine. We all agree that 300 different sauces at $10 is indeed an assortment, don’t we? And a 100 sauces at $30… it’s quite an assortment too. Now, 50 sauces at $60, that still qualifies. 25 sauces at $120 each: it’s less of an assortment but still is. What about 10 sauces at $300? There is a certain degree of assortment in there, don’t you think? So what is the magic number below which the word “assortment” no longer applies? 9? 8? 5? 3 and a half? And for God’s sake, who is smart enough on earth to determine this number once for all? Your honor, this one is really easy: from the moment there is a plurality of products and kinds, there is indeed an assortment, period. Please reverse this misguided decision and grant the license to my client, as it should.<\/p><\/blockquote>\n

Verdict? What do you think?<\/p>\n

To us, it is quite evident that there is a gaping loophole in the current regulation. To fix it, the regulation must be revised, something that could take at least a few years, if not more.<\/p>\n

The R\u00e9gie<\/a> has of course the power to modify certain regulations by itself, without the approval of the National Assembly, but this power is circumscribed in a very precise list (see here<\/a>) which, at first glance, does not seem to include the conditions under which a permit may or may not be issued to a grocery store. But of course, if it wanted to, the R\u00e9gie<\/a> could decide to act anyway and defend itself right until the Supreme Court. Except that it will have to justify its decisions convincingly to the public.<\/p>\n

So to all our entrepreneur friends, here lies a fantastic opportunity. Those who have a permit already may get rid of most of their food offering to keep just a few expensive items to reach the minimum required. And those who will have obtained a license and taken advantage of it may obtain a vested right once the regulation is revised, should it be the case.<\/p>\n

In the meantime, and three days later, the so-called RACJ<\/a> expert is nowhere to be seen… to be continued.<\/p>\n

\"\"<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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