Liquor firms try to influence government

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This article was published 24/08/2023 (746 days ago), so information in it may no longer be current.

Massive, multinational alcohol beverage companies are trying to bend the ear of Manitoba’s Progressive Conservative government amid a bitter liquor workers strike that comes after repeated attempts by the Tories to expand private booze sales.

Lobbyists with Molson Canada, Labatt Brewing and Diageo Canada have all pursued meetings and correspondence with government officials, Tory cabinet ministers and Premier Heather Stefanson over the past 18 months to discuss liquor modernization and retail expansion, according to lobby registry records.

As recently as Aug. 1, Labatt Brewing Co. — which describes itself as Canada’s largest brewery — registered to lobby Tory MLA Andrew Smith, the minister responsible for Manitoba Liquor and Lotteries, and Justice Minister Kelvin Goertzen.

The purpose of the lobbying was to engage with government on “policies relevant to Labatt.” The company previously advocated against increased markups on liquor in Manitoba.

Meantime, both Diageo Canada — which owns Gimli-based distillery Crown Royal — and Molson Canada have active lobbying profiles with the stated intent to influence government policy and programs.

Manitoba Liberal Leader Dougald Lamont called potential lobbying by out-of-province booze companies while 1,400 Manitoba Liquor and Lotteries employees are striking for better wages “completely inappropriate.”

MLL employees first took job action on July 19 and after a series of single-day strikes, walkouts and lockouts, the labour dispute escalated to a full strike Aug. 6.

On Wednesday, the Manitoba Government and General Employees’ Union said it reached a tentative agreement with MLL that, if ratified, would end the five-week-long dispute.

Government representatives should not hold audiences with corporations with an interest in expanded private liquor retail sales while labour action is ongoing, Lamont said, arguing such lobbying could “undermine workers.”

“Ethical questions aside, none of those companies are Manitoba companies anymore,” he said.

“There are a lot of local manufacturers who are on the verge of bankruptcy and risk being driven out of business because of the PCs’ decision to force this strike.

“They’re caving in to international corporations that have no long-term interest in Manitoba, and they’re willing to put Manitoba businesses and Manitoba workers at risk to do that,” the St. Boniface MLA said.

Smith’s office declined an interview Wednesday. Instead, a written response attributed to a government spokesperson was provided.

“The minister has not, and will not meet with any of those organizations while the strike is ongoing,” the spokesperson said, referring to Diageo, Labatt and Molson.

The minister’s office also declined to discuss the companies’ efforts to influence the Tory government’s attempts to reform liquor laws since late 2020.

Proposed legislation that would have allowed existing beer vendors, private wine stores and other liquor retailers to carry the full range of Liquor Mart products — and created a pilot program for private retailers such as grocery and convenience stores to sell alcohol — was blocked from becoming law by the Opposition NDP in April.

Similar attempts by the Tories to change how and where booze is sold have faltered since the government first introduced Bill 40 (The Manitoba Liquor and Lotteries Corp. Amendment and Liquor, Gaming and Cannabis Control Amendment Act) in November 2020.

Since then, numerous entities involved in the production, distribution and sale of alcohol have lobbied the government, including 7-Eleven, Skip the Dishes, the Convenience Industry Council of Canada, the Canadian Federation of Independent Business and the Coalition of Canadian Independent Craft Brewers.

“All ministers and MLAs meet with stakeholders from their respective departments or ridings,” the government spokesperson said. “It is important for them to hear the concerns and recommendations from stakeholders that are directly impacted.”

If re-elected, the PCs have vowed to expand private retail liquor sales.

In a statement to the Free Press, a spokesperson for Labatt Breweries said the company continues “to have regular discussions with government officials in Manitoba as part of our day-to-day business.”

The brewery deferred questions about policy advocacy to Beer Canada, which did not immediately respond to a request for comment. Diageo Canada did not respond by deadline.

The NDP accused the government of putting the interests of out-of-province corporations above Manitobans in the pursuit of further privatization, which the party has opposed.

The New Democrats acknowledged the liquor retail system can be improved and said they are committed to working with all parties involved to offer better service to Manitobans. No one from the party was made available for an interview.

“It’s clear that (Premier) Heather Stefanson is in it for the people at the top, not for regular Manitobans,” the party’s MLL critic Lisa Naylor (Wolseley) said in a statement. “We should be working for working people and their families, not for big corporations.”

danielle.dasilva@freepress.mb.ca