Week 11

Question 1

1. What factors accounted for the rise of the “Big Three” and the emergence of the national brewing oligopoly in Canada after the Second World War?

Answer 1

With the large spending of the Canadian public, E.P taylor and a combination of new televisions allows brewers to easily advertise their products, allowing them to further invest in more and more breweries.

Question 2

2. Why did the “big three” expand via mergers and acquisitions rather than building new breweries across the nation or shipping their beer to distant
   regional markets from a central location, as was done by the “shipping brewers” in the United States?

Answer 2

Transpiration cost, quota systems, competition, tariffs all forced the big three to acquire and merge to reduce on cost. It also presented the illusion of competition to not provoke the government.

Question 3

3. What form did competition in the brewing industry take and how were the “big three” able to keep the domestic market to themselves during the 1950s, 60s and 70s?

Answer 3

They had the government save them through tariffs, and other trade barriers for the US, this was done so they could be competitive with the US brewing companies.

Question 4

White Paper on Employment and Income 1

Answer 4

Most people are fearful of post war Canada because of potential economic hardships, the governments blueprint for economic reconstruction, beer does very well from 1945, written my Dr. Macintosh who believes we are a exporting country, lended his mind for the government, goal was to boost economic activity

Question 5

Keynesianism 1

Answer 5

The dominant economic ideology, if businesses aren’t willing to invest get the government to invest.

Question 6

Family Allowance 1

Answer 6

Is one of the ways the government stimulates families spending, based on how many children you have and how old you are. This leads many families to buy homes.

Question 7

Economic boom of 1945-1957 1

Answer 7

With this boost in spending it causes a great economic boom

Question 8

Television 1

Answer 8

Its the primary tool for brewers to advertise their products, Molson becomes the official sponsor of hockey night in Canada,

Question 9

E.P. Taylor’s “merger for monopoly” strategy 2

Answer 9

The first brewery E.P Taylor buys outside of Ontario.

Question 10

National Breweries Ltd. 2

Answer 10

Comes into existence from consolidation 10 breweries in Quebec and E.P Taylor wants to buy it, because they are producing beers that no one wants.

Question 11

Leduc Oil Discovery 1

Answer 11

Oil in discovered growing Canada’s economy even further, E.P Taylor sees this and wants to take advantage.

Question 12

Western Canada Breweries Limited 2

Answer 12

The first brewery E.P Taylor buys in western Canada, it has a presence in every western province

Question 13

Combines Investigation Act 2

Answer 13

Its a permissive policy that allows anti-trust legislation, went after E.P Taylor for monopolizing the beer industry.

Question 14

Hugh Mackenzie 2

Answer 14

The guy in charge at Labatt, the first non-Labatt to be president for the company, is overlooking day to day operations and has a vision for the company. Realizes that they must follow E.P Tayler and they go public to get the cash they need.

Question 15

Shea’s Winnipeg Brewery’s 2

Answer 15

It owns breweries in all provinces instead of Western BC, a hospital is willing to sell its shares of Shea’s, so T.P looks buy and expand, he needed Shae’s so he could sell his beer in large quantities.

Question 16

Saturday Night 3

Answer 16

One of the national circulating magazines in which the brewers advertise, but provinces had restrictions on advertisements.

Question 17

Labatt 50 3

Answer 17

One of the two beers Labatt promotes from coast to coast, one of the first national beer brands,

Question 18

Barriers to Entry 3

Answer 18

The big three were able to keep the market for themselves through cannibalizations of our own products, had the government implement a tariff for imported liquor