A factory that makes alcohol is stopping making cheap big vodkas because the Alberta minister says they are not being sold at a fair price.
Some people like the new jugs from T-Rex Distillery, but some don’t. The jugs are getting mixed reviews on social media. About half of the people like them because they are new and easy to use.
Others are worried too, like Service Alberta Minister Dale Nally. He thinks the low $49. 95 price was not a good idea and he might step in to do something about it.
The distillery in Edmonton is making jugs of liquor for Super Value Liquor, and they are selling it at the price Super Value Liquor asked for.
Currently, Alberta Gaming, Liquor and Cannabis decides how much stores have to pay for products. However, T-Rex says that the agency doesn’t give any rules or instructions on how much the products should be sold for.
Laws in Canada control how alcohol is labelled and packaged, and Nally says the jugs follow these rules.
“He told reporters on Monday that it doesn’t match the values of the people in Alberta. ”
“We think the pricing is not fair. ”
Nally’s ministry didn’t quickly explain what the government might do about pricing.
The plastic jugs look like four-liter milk containers and have simple labels that say “value” and “vodka” on a yellow background.
Sunny Bhullar, who is the manager at Edmonton Super Value Liquor, said his store reduced the price of the jugs from $60.
“We make sure we are taking care of our customers in a good way,” said Bhullar in an interview.
He said the store wants to sell good products at low prices for people who want to buy a lot at once.
“We sell our products at a reasonable price,” he said.
Nally wants to set a minimum price for the products, but Bhullar is worried about it.
“It will be difficult for small shops to compete with the larger stores in that situation,” he said.
T-Rex sent an email saying that its vodka bottles have been available for about a year. It also sells a special T-Rex jug for businesses like bars and restaurants.
The company said that the vodka bottles were checked and given the okay by the Alberta Gaming, Liquor and Cannabis. As of Monday, T-Rex has not heard anything from the agency, the government, or the minister.
“Craft distilleries in Alberta have been struggling because their prices are not fair. Some distilleries are even selling their spirits for less than T-Rex,” said the company.
“We have told AGLC many times about our worries with the current system. ”
Nally said something before proposing a new law to reduce red tape. He wants to make it clear that he has the power to set liquor prices.
Nally said, “If this bill becomes a law, then I will definitely investigate it. ”
I don’t think a big plastic jug of vodka is good for our local distilleries. I don’t think the pricing is fair.
Nally wants to change the rules to match what really happens in the liquor industry. The AGLC, which watches over the industry, can’t raise prices without the minister’s approval.
T-Rex said that when AGLC removed a rule a few years ago that required craft distilleries to make most of their own spirits, it caused prices to become very high and not able to continue.
T-Rex said that anyone can mix and sell a lot of vodka they bought in bulk without having their own distilling equipment. The company and other small alcohol makers had to lower their prices to compete and stay in business. This was especially hard because they had already spent a lot of money on distillery equipment, while new companies didn’t have to.
The AGLC said they couldn’t answer questions on Monday about the rules for selling large vodka jugs. It didn’t answer right away when we asked about the rules for making liquor in small distilleries.
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