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Blow
out time at the LCBO
Michael
Vaughan • Wine & Spirits Columnist
National Post • Saturday, February 24, 2001
Every month a few hundred cases of discounted (mostly 25% with some
50% off) wines and spirits mysteriously appear at various LCBO stores. There’s no hoopla or trumpet blowing. They usually end up sitting on the
store floor in a happenstance pile waiting to be gobbled up by bargain hunters.
They are the unsold remnants of the LCBO’s “consignment” program or private orders orphans. You see, some agents (not all) have the privilege of
bringing in special products they can sell directly to consumers, or more likely to restaurants. Indeed, many upscale Toronto restaurants insist on
consignment wines in order to provide them with an air of exclusivity. The
fact that the customer doesn’t know what they cost means mark-ups can increase substantially without any anxiety.
Agents keep them in an LCBO-controlled warehouse for up 240 days at a small monthly charge (the first 120 days are free). I am told that the LCBO
has carefully rationed out these warehousing rights in order to ensure that
there isn’t too much competition. Many agents complain about the very restrictive nature of this policy, arguing that, after all, the LCBO is still taking
its pound of flesh (i.e. mark-ups) without having to do any of the merchandising, delivery, etc. Moreover, they say it’s discriminatory because
Ontario producers can sell directly to restaurants with a much lower LCBO mark-up.
What happens is that if an agent fails to move the product, the LCBO will seize it and offer it through its stores at the discounted price. The
still-to-be-paid producer will now be penalized by 25% of the invoiced price. Meanwhile, the customer may well find a bargain on her or her hands.
Of course, the operative word is “may” because there’s a network of restaurateurs and agents who cruise the stores looking for such bargains.
Hopefully LCBO staffers resist the temptation to notify those clients who provide their store with lots of business. In fact, hiding special items in the
backroom for VIP customers is a well-known “no-no” at the LCBO.
It’s mostly a matter of being in the right place at the right time. You have to
know which stores to cruise. Unfortunately, my favourite haunt Queens Quay no longer has the floor space to bring them in. Best bets are
Crossroads (Weston Road and the 401) or Bayview Village. For those of us on the outside, striking gold isn’t all that likely.
This week, for instance, 25 cases of Adelsheim 1998 Chardonnay Reserve blew through the LCBO at an incredible $6.80 per bottle
(normally about $20). Don’t ask me how they got this price. I do know, however, that one lucky licensee picked up some ten cases which will likely
appear on the wine list at eight times its cost.
Getting the scoop on what’s coming is practically impossible. These items
don’t have a regular product code and can’t be looked up. The last thing the
LCBO wants is to have this discounted stock scooped up by its agent.
This is especially true of private stock orders where an $8 per case deposit
(or 67 cents a bottle) is required. In this situation, if the product isn’t picked
up within 60 days, it’s seized by the LCBO and goes through the same clearance procedure. If the wine happens to be a dog, then the licensee’s
loss is quite insignificant. While some wines may be “dumped” in this manner,
it’s the high failure of the restaurant business itself that significantly
contributes to this flow.
As for slow moving Vintages items, there are the two annual “Bin End” sales
- one of which starts next Monday. Of the 142 items listed, I am reluctant to
make recommendations because most were evaluated 12 to 24 months ago and a lot can happen in this time. Delicate whites can collapse, while some
reds can improve significantly.
In other words, an old tasting note can be a very treacherous thing. I always
get chuckle seeing the LCBO using outdated recommendations that have little, if any, relevance to how the wine tastes today! It also seems that
Robert Parker is finally getting tired of having his scores bastardized by some
who would make used car salesmen appear virtuous. Lawsuits are
apparently afoot.
As for next Monday if I have one recommendation it would be the well-textured, toasty
Lanson 1993 Gold Label Brut Champagne reduced from $49.85 to $37.85.
Finally, for those of you who don’t care about discount deals, there’s the
Winter Classics Catalogue featuring 420 items. Fax and mail orders set to begin on February 28 (phone ordering commencing on March 9th). For
what’s hot, check my website for specific recommendations of wines recently assessed.
Copyright
Food & Beverage Testing Institute of Canada 2004
Prior written permission is required for any form of reproduction
(electronic or other wise) and or quotation.
Contact Michael Vaughan at
mbv@total.net