Tim Hudak wants Ontario distillers treated the same as wineries, breweries

The former leader of the Progressive Conservatives wantsto change Ontario's"antiquated" liquor laws so smalldistillers are treated the same as craft brewers and wineries.

Tim Hudak says there aredozens of wineries in his Niagara-area riding that can sell a glassof VQA wine to people who visit for a tour, and craft breweries havethe same option for their customers.

But Ontario's "backwards and outdated" liquor laws prohibitdistillers from selling customers a drink on site, even though theycan sell them bottles of their alcoholic products at the on-sitestore, said Hudak.

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"You can pull off the highway and buy some of the products, butif you want to get a Manhattan with one of those local ryes, theyare prohibited by law from doing so," he said in an interview.

"When it comes to brew pubs and wineries, of course you can buy aglass."

Hudak said he was surprised to learn distillers can't sellcustomers a mixed drink.

"They can add in some local products to make it a veryinteresting experience for the guest, and spin off sales for localfarmers through the mixed drinks," he said.

Hudak said Canadian distillers are the third-largest purchasersof food-quality grain, buying 225,000 tones a year, along with 105million bushels of corn about 2.2 per cent of Canada's totalannual output for the production of distilled spirits.

Provincial law also forces small distillers to ship theirproducts to the Liquor Control Board of Ontario for distribution tobars and restaurants, but wineries and breweries can deliver directlyto bars without going through the LCBO.

Hudak said a friend with a restaurant about five minutes' drivefrom the Dillon's Distillery in his riding can't get direct deliveryof their products for his customers.

"They have to ship it to Toronto to the LCBO warehouse whichthen delivers it to the restaurant, and that's an anachronism," hesaid.

A distiller keeps about $10 from a bottle of gin that retails for$33.50 at the LCBO, and Hudak said there should be a "stepped"taxation system that lowers what he calls the "punishing governmentmark ups" for the smaller distillers.

A 'punishing tax'

There's been an explosion of small distillers in the UnitedStates, and Hudak is worried Ontario's liquor laws are discouraginga similar growth in the sector here.

"It's a punishing tax and the result is small ones won't growand hire more people, and other start-ups will never happen," hesaid. "We made changes that allowed direct delivery of wine torestaurants. Why can't we do the same fordistillers?"

The LCBO said it expects the "emerging trend of craftdistillers" to attract more consumer interest and sales oflocalOntario products, and is looking for opportunities to highlighttheir products.

"We are also working on enhancing the on-shelf presentation and visibility for Ontario craft spirits in addition to incorporating education on this emerging industry to our staff and customers,said LCBO spokeswoman Christine Bujold.

"The LCBO further supportslocal craft distilleries through programs designed to help smallOntario distillers sell theirproducts to bars and restaurants."

The Ministry of Finance declined comment on Hudak's proposedchanges because of an ongoing court case involving a Torontodistiller and the LCBO.