Starting today, the Liquor Control and Licensing Branch will hold the first of six auctions for eligible grocery stores to bid on the opportunity to apply for a Special Wine Store licence to sell wine on shelves.

BC Auction will hold secure, private bidding opportunities on April 19, 21, 26, 28, May 3 and 5. The auctions will take place over 24 hours, beginning at noon and ending at noon the following business day, with one business day in between. The process is being coordinated independently through BC Auction. The Liquor Control and Licensing Branch has engaged a third-party auditor to ensure the auction process is fair and transparent and to audit the entire process once it is complete.

Initially, there will be six auctions to determine eligibility for six licences. Up to 12 additional auctions will be conducted at a future date. The highest bid in each auction is the winner once the final audit confirms these results. The minimum bid in each auction is $125,000. All bidders are required to submit a $25,000 deposit in advance for each auction.

Eligibility

Participation is restricted to pre-screened grocery store owners who have, or will have, a minimum 929 square-metre (10,000 square-foot) store that primarily sells food. Applicants have been pre-screened, and those meeting the eligibility criteria were invited to register with BC Auction.

The proposed grocery store site may be located anywhere in the province; there are no geographic restrictions on the location or the proximity of the proposed site to other liquor retailers.

Bidding

The successful bidder’s deposit will be subtracted from the bid amount if the licence is approved. The Liquor Control and Licencing Branch will maintain a record of unsuccessful bidders, ranked according to the value of their bids. Should an applicant fail to successfully complete the application process, the branch will notify the second-highest bidder that they may apply. This process will continue until all the licences have been issued.

Unsuccessful bidders will be refunded their deposit and can participate in future auctions, should they choose.

Process

Successful bidders will have 60 days to apply to the branch for their licence. Each application will follow the pre-determined process, which includes zoning approval from their local government or First Nation. Additionally, applicants must submit a security and staff training plan outlining how they will guard against shoplifting and ensure minors and intoxicated customers do not access the product. The licence must be held by the same legal entity as the grocery store.

Quick Facts:

• Special Wine Store licences enable the licensee to sell 100% B.C. wine, sake and cider off grocery store shelves.
• All fees are paid into government’s general revenue fund, and go toward important health and social programs.
• Government will disclose which grocery stores have received a licence as a result of the auction once the licences are issued.
• There are currently seven grocery stores through the province selling 100% BC VQA wine off their shelves under the authority of VQA wine store licences.

Links:

• Learn more about BC Auction: https://www.bcauction.ca/open.dll/welcome
• For further information on the auctions and who is eligible, visit: www.pssg.gov.bc.ca/lclb/docs-forms/auction-sws-information-interested-parties.pdf
• Read the full list of Liquor Policy Review recommendations:  www2.gov.bc.ca/local/haveyoursay/Docs/liquor_policy_review_report.pdf
• View the list of recommendations that have been implemented to date: http://www.pssg.gov.bc.ca/lclb/docs-forms/lpr-implementation-table.pdf