Quebec alcohol producers ready to tap into direct sales

Quebec is trying to break down barriers for local alcohol producers amid the trade war with the U.S.

Big changes are brewing in Quebec’s alcohol industry.

Legault tweeted last week that “Quebec is joining a group of provinces that will be working to authorize the direct sale of Canadian alcohol products to consumers.”

Montreal wine maker Daniel Gillis is excited to benefit.

“It would be a total gamechanger for the entire industry in the province. I mean, a total game changer,” says Gillis who co-owns Lieux Communs.

Looser laws mean alcohol businesses could skip crown corporations like the SAQ and sell straight to Canadians.

Right now, Lieux Communs sells their wine to importers in other provinces, but breaking into those markets means slashing their profit margins significantly.

For Gillis, direct sales would allow him to quit his part time job and focus on making wines.

For the industry, he says it would flourish.

“We could invest more into planting grapes. We can invest more into technology and manpower, to make better wine. Ultimately, everything’s connected.”

It’s not clear exactly how the new rules would work, but the move is a step towards modernizing the province’s alcohol market, says Vincent Lambert who heads the Quebec Union of Microdistilleries.

“Especially in Quebec, we’re really far behind, not only for other countries, but in all Canadian provinces,” says Lambert.

He adds that one of the biggest barriers most small distilling companies face, is a 50 per cent markup they pay the SAQ.

After taxes, distillers pocket just 25 per cent of their product’s price.

Lower markups for on-site or online sales would go a long way, Lambert says.

“That’s the first thing. Second thing is all products must be listed, selected and distributed by the SAQ, meaning that smaller brands often struggle to get shelf space.”

But he says there’s more room for local liquor to shine, with trade tensions taking U.S. alcohol off the shelves, and Quebec producers ready to uncork new possibilities.