The successful bidder in the first round of special wine store licence auctions has received approval in principle from the Liquor Control and Licensing Branch (LCLB) for six liquor licences that allow for the sale of 100% British Columbia wine on grocery store shelves.

In six auctions between April 19 and May 5, 2016, Loblaw Companies Limited bid successfully for the right to apply for six special wine store licences. The auction process was coordinated independently through BC Auction, and evaluated by a third-party auditing firm to ensure the process was fair and transparent.

The approval in principle for each of the six licences is subject to confirmation of zoning requirements and a final inspection. Once these requirements have been met, Loblaw will be in a position to begin selling wine-on-shelves.

The first six auctions are projected to raise $6,914,000 in revenue for the Province, which goes toward funding government programs. The final amount will be confirmed once all six licences are approved.

Next round of auctions

BC Auction will allow eligible grocery stores to bid on six opportunities to apply for a special wine store licence to sell wine on shelves on Dec. 6, 8, 13, 15, 20 and 21, 2016. The secure, private 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. Applications to participate in the auction must be submitted to the LCLB by Nov. 24, 2016.

The LCLB has engaged a third-party auditor to ensure the auction process is fair and transparent, and audit the entire process once it is complete.

The highest bid in each auction is the winner. The minimum bid in each is $125,000; all bidders are required to submit a $25,000 deposit in advance. Up to six additional auctions will be conducted at a future date.

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 will be pre-screened, and those meeting the eligibility criteria will be 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 LCLB 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 11 grocery stores through the province selling 100% B.C. VQA wine on their shelves under the authority of VQA wine store licences.

Learn More:

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