Week 7 Presentations Flashcards
What were the economic contexts of Alberta in 1993 and Ontario in 1996?
Alberta had a $2.3 billion provincial deficit and an unemployment rate of ~10%. Ontario faced a $9 billion provincial deficit with an unemployment rate of 8.9%.
What were the annual capital spending figures for LCBO before and after modernization?
From 1993–94 to 1997–98, annual capital spending averaged $22.92 million. From 1998–99 onwards, it exceeded $50 million.
What was the liquor market composition in Ontario in 2007–08?
The Ontario market value was over $9 billion, with LCBO holding 50.8% market share (604 stores), The Beer Store 29.5% (440 stores), and Wine Stores 2.7% (429 stores).
How many liquor retail points were there in Alberta and Ontario in 2006?
Alberta had over 1,100 liquor retail points, while Ontario had 1,745 outlets (604 LCBO, 440 Beer Store, 429 wine stores, others).
What structural changes occurred in Alberta’s privatization model?
Alberta replaced 200 ALCB-owned stores with ~500 private stores by 1994, introduced a flat alcohol tax, and required stores to be ‘free-standing’.
What was the impact of Alberta’s privatization on the workforce?
1,800 unionized ALCB employees were laid off and replaced by private-sector workers.
What market characteristics emerged in Alberta post-privatization?
There was uniform wholesale pricing, increased liquor store density and hours, and intense price competition among retailers.
What were the pre-modernization issues faced by Ontario’s LCBO?
The LCBO was under-capitalized, had outdated operations, slow decision-making, and poor customer experience.
What reforms were implemented in Ontario’s LCBO post-modernization?
Store upgrades, staff training, expansion of high-margin product sales, and the launch of Food and Drink magazine.
What political and cultural factors influenced Alberta’s liquor model?
Alberta had a populist political culture favoring small businesses and skepticism toward government intervention.
What political and cultural factors influenced Ontario’s liquor model?
Ontario had a history of state intervention and socially conservative views on alcohol access.
How do prices compare between Alberta and Ontario’s liquor markets?
There is no significant price difference; differences are largely due to taxation. Premium products may be cheaper in Alberta.
What are the customer experience differences between Alberta and Ontario?
Alberta offers a wide variety of stores with extended hours but lower service quality, while Ontario has fewer stores but higher customer satisfaction (~80% approval rate).
What stakeholder influences were present in Ontario’s LCBO reforms?
Large brewers and spirits manufacturers opposed reforms, while public health advocates supported the LCBO as a regulatory mechanism.
What stakeholder influences were present in Alberta’s privatization?
Hotel and restaurant associations supported privatization with minimal opposition from unions or suppliers.
How did customer adaptation differ between Ontario and Alberta?
Ontario reshaped alcohol’s image as a premium product, while Alberta increased consumer convenience through competition.
What were the estimated societal costs of alcohol use in Canada in 1992?
Estimated at $7.5 billion.
What role did neoliberalism play in Alberta’s privatization?
Alberta’s privatization aligned with neoliberal ideals but favored local businesses over free-market giants.
What was the Scotch Whisky Association’s purpose?
To protect the Scotch Whisky brand globally, ensuring authenticity and maintaining quality.
What historical acts defined and protected Scotch Whisky?
The 1933 Act defined Scotch Whisky, and the 1969 Act strengthened legal definitions and protections.
What key issues were raised regarding Scotch Whisky?
Lack of legal definition led to misrepresentation and challenges in maintaining its global image.
What are the economic implications of preserving Scotch Whisky’s global image?
Lower quality imitations hurt sales and profitability, and reputational damage from inferior products undermines the brand.
How does the Scotch Whisky Association’s situation compare to Parmigiano Reggiano?
Both face challenges with imitation products and rely on geographical indication laws for protection.
What modern challenges do products like Scotch Whisky face?
Balancing tradition with industrial efficiency and addressing consumer demand while maintaining product integrity.
