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Experts in liquor licensing for the success of your business

June 5, 2017 Delivered via email: [email protected]; [email protected]

His Worship Mayor Henry Braun and Members of the Executive Committee Council City of Abbotsford 32315 South Fraser Way Abbotsford BC V2T 1W7

Dear Mayor Braun and Members of the Executive Committee Council:

Re: Potential Sale of on Grocery Store Shelves

Thank you for the opportunity to meet with you and the Executive Committee to discuss the issue of BC wine potentially being sold on grocery store shelves.

I would strongly recommend that the City of Abbotsford not permit the possible retailing of wine in grocery stores in the municipality. While the initiative appears relatively straight forward at first blush, there is no question that it will result in an increase of social costs to the municipality and put the small and medium size wineries and the existing Abbotsford private liquor stores and government workers at severe risk.

The existing independent liquor stores contribute substantially to the community in the following ways:

• Payment of taxes and licence fees to the City of Abbotsford; • Employment of local residents to work in the stores whether as Employees or Management; • Support of other local businesses whether they are various trades or professionals; • Participation in community events and sponsorships as well as donations to local charities and organizations; • Provide a safe secure focused environment for the selling of alcoholic beverages for off­ site consumption.

On the other hand, a major grocery chain can add liquor products to their current store inventory similar to adding another product line without any benefits to the Abbotsford community.

While the Province has overall responsibility for regulating liquor through the Liquor Control and Licensing Act and Regulations there is clearly a Municipal responsibility for planning and regulatory land use within their Jurisdiction. They also have responsibility to ensure that liquor

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sales and service are not detrimental to the community in terms of land use, impact on community safety, policing and municipal costs such as policing and social costs. Further, shop lifting and accessibility of alcohol to minors via shop lifting and bootlegging will become drastically increased in a massive open grocery store compared to a controlled environment of an existing private or government liquor store.

Other Municipalities have moved forward to adopt zoning regulations to prohibit liquor and wine sales in grocery stores entirely or within 1 km of any existing liquor or wine store. This was done out of concern for the social community impact of Liquor sales. As an example I have attached to this letter the Liquor Store Guidelines for the City of Vancouver which restricts the size, type, location and number of stores in the community. It sets a policy that no liquor store (including wine stores) should be within 150 metres of a church, park, elementary or secondary school, community centre or Neighborhood House. It also restricts stores to be in identified local shopping areas and restricts the number of stores in each local shopping area. In the downtown commercial core and Broadway area proposed stores have to be 500 metres or more away from an existing liquor store.

Therefore these Municipalities do see the need to regulate the number, location, and proximity of liquor stores due to the social and community impacts a liquor store can have similar to a Liquor Primary establishment.

I am a former General Manager of the Liquor Control & Licensing Branch for the Province of . Prior to being the General Manager of the Liquor Branch I was Secretary to Cabinet under Premier Bill Bennett. Since my time of General Manager of the Liquor Branch and Government days I have been a consultant in the liquor hospitality industry for the past 28 years and I have closely watched the evolution of liquor policy in the Province of British Columbia. I have also been close by watching the new initiative for the proposed sale of BC wine on grocery store shelves.

In the early 80's the government decided to create a model of retailing called the Cold Beer & Wine store. At the time the only product that could be sold under that model was BC beer and BC wine. However in October of 1987 then Prime Minister Brian Mulroney and former President Ronald Reagan signed the /U.S. Free Trade Agreement. A result of this agreement was that Cold Beer and Wine Stores were then permitted to sell both imported beer and wine in order to be trade compliant. Other restrictive retail models such as the independent wine stores were also changed at that time to permit them to also sell imported product. There is a very strong opinion that the BC Government initiative that is currently underway to sell only BC wine in grocery stores is not compliant with our trading agreements with the United States and the European community.

I have attached to this letter a copy of a letter sent to Premier Clark on April29, 2016 from the Ambassadors and High Commissioners of seven countries which state the BC wine only on grocery store shelves discriminates against imported products. A meeting was held on July ?1h 2016 between BC, Canada and United States Trade official, at which the United States stressed their concern that the BC wine on grocery store shelves is a violation to multiple trade agreements. My reason for bringing this up is, like the cold beer and wine store model, if a trade challenge is successful, it will result in imported wine also being available in grocery

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stores. This in turn would be disastrous for the small and medium size wineries in BC, which cannot compete with Gallo, Constellation Brands and other major international wineries. The Gallo winery in California is larger than our entire British Columbia wine industry!

We also know the Craft Beer & Craft Distillery industries are lobbying the government to also have their products retailed in grocery stores alongside BC wine. Therefore from a municipal perspective the City of Abbotsford should consider the wine on grocery store shelf model as one that will expand to eventually include other alcohol products as well over time.

The retail sale of BC wine and potentially of imported wine products and other liquor products would be very destructive to the existing Private Liquor stores and Government Liquor Store workers in Abbotsford. There are currently seventeen Private Liquor Stores in Abbotsford which all employ residents of the City and contribute to the community in many ways. Apart from paying taxes, these stores provide employment, support local charities and community events. On the other hand, grocery chain stores can add liquor to their portfolio of products and either not hire any more employees or at the most one or two. It is akin to adding another water or cereal product.

Also in Abbotsford the Private Liquor Stores and two Government Liquor stores are located throughout the community and in close proximity to grocery stores. Therefore the community is already extremely well served to the point of Abbotsford being over saturated with liquor stores.

When I was General Manager of the Liquor Control & Licensing Branch in 1987 and 1988 we also did a Liquor Policy Review. This Policy Review examined the retailing options of alcohol products in the province. On the table during this Policy Review was whether or not we should permit wine to be sold on grocery store shelves, the future of the Cold Beer & Wine Store model and the future direction of the Liquor Distribution Branch Stores. As a result of extensive consultations the Liquor Policy Review committee, chaired by Mr. John Jensen an MLA and former Mayor of Chilliwack the conclusion was reached that we should maintain the existing mixed model retail system we had in the province which consisted of cold beer & wine stores (now called Licensee Retail Liquor Stores) and government liquor stores.

The expansion to permit any alcohol products into grocery stores was considered by our policy review in 1987 and based .on the social issues involved with the sale of liquor was strongly rejected. The reason for this is the fundamental principal that the more available alcohol is the greater the social challenges and costs to society. The social challenges around alcohol doesn't just show up in minors being able to purchase alcohol, intoxicated persons, drinking and driving but it also shows up in domestic violence, workplace violence, sexual abuse and other issues that have huge social costs that are often paid by the municipalities including ambulance; policing and fire costs. There is no question that the more available and the easier alcohol is accessible in our society the greater the problems. This was a compelling factor in 1987 and I submit to you that the same applies today. By placing BC wine on grocery store shelves will make it much easier for all segments of our society to access alcohol products. Our philosophy in 1987 was that if you are going to purchase alcohol products you should have to go to a separate and distinct store. In other words you make a conscious decision if you are going to cross threshold of a government liquor store or a private liquor store to purchase an alcohol product. By putting BC wine on a grocery store shelf right next to the pickles increases the

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possible social harms of alcohol especially as it would be visually exposed (unlike tobacco and pornography in grocery stores) to the most vulnerable groups of our society (ie. MINORS, alcoholics, and drug users).

I have attached to this letter an extract from the 1987 Liquor Policy Review Report dealing with privatization. It states in part the following:

"With the foregoing as background, we considered whether to allow beverage alcohol sales in food stores. After carefully considering the merits of the arguments, the committee is persuaded that such significant increases in availability would be unwise. We do not believe that privatization is strongly supported by the majority of British Columbians and we are concerned that such a move would lead to increased consumption and abuse, particularly among the "populations at risk" to which we referred earlier. Furthermore, upon inspection, it became clear the present system of retailing does or could produce quite acceptable levels of availability and customer convenience. For the same reasons we do not support the sale of beverage alcohol in drug, department or general merchandise stores.

RECOMMENDATION 15. The current system of liquor retailing, with modification, should be maintained. Beverage alcohol should not be retailed in food, drug, department or general merchandise stores beyond the existing rural agency store program."

Indeed Mr. John Yap in the current 2014 Liquor Policy Review Report for the Provincial Government stated that while he supports the model of a separate liquor store being located inside a grocery store (store within a store model) there should be a separation of grocery products from liquor. His recommendation is as follows:

"Recommendations: 19. The Province should develop and implement a retail model that meets consumer demands for more convenience by permitting the sale of liquor in grocery stores. Government should continue to restrict the total number of retail outlets and require separation of grocery products and liquor. This reflects the views of health and safety advocates and the acknowledged safety benefits of restricting minor's access to liquor." (emphasis mine)

Therefore; even the Provincial Liquor Policy Review Report does not recommend wine (or other liquor products) being sold on grocery store shelves but rather continue to have a separation of liquor from groceries.

On December 16, 2015 the City of Vancouver Council considered a staff recommendation to permit the sale of wine on grocery store shelves on a pilot basis for five locations. After hearing from representatives of Vancouver Coastal Health, Council decided not to approve the recommendation at this time and requested further analysis and review in the context of an overall Liquor Policy Review. Attached is a copy of the briefing note prepared by Vancouver Coastal Health, which recommends to the city not to proceed at this time with changes to their policy until a comprehensive policy is in place that address health and safety issue.

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Just recently the Municipality of North Cowichan, City of Pitt Meadows, City of Maple Ridge and the City of North Vancouver gave consideration to the proposal to sell wine in grocery stores. These municipalities after public hearings voted not to permit it. I have attached to this letter a copy of a letter and a press release submitted to the Mayor of Maple Ridge from Dr. Tim Stockwell, Director for the Centre for Addictions Research of BC at the University of Victoria. I would encourage you to read this and the press release also attached to this letter. He argues that a 1km separation would help minimize the social costs of alcohol.

In closing, when you think about it there are only two stores as a human being that we must go to in order to survive. One is a clothing store and the other one is a grocery store. All other stores are optional. Grocery stores have to cater to everyone. They attract youth, they attract alcoholics, recovering alcoholics, gang members, persons who are intoxicated (who may not be visibly displaying signs of intoxication) all because food is a necessity of life. However when a minor or criminal gang member or someone who is intoxicated enters a liquor store they are under a much higher level of scrutiny then they are in a grocery store. The moment they cross the threshold the staff are trained to assess the individual customer, and determine if they should be in the store or provided service. This test or assessment is not required in a grocery store.

There is no question that there will be social costs downloaded to the municipalities as a result of the increase of availability of alcohol in grocery stores if the City of Abbotsford decides to approve the sale of wine in grocery stores. This will show up in increased police, fire, ambulance, health care costs and greater public safety concerns. Also, in light of the uncertainty of how marijuana will be distributed and retailed in our Country and Province this further provides reason not to expand accessibility to alcohol thru new channels.

I would also point out that in Abbotsford the existing government and private liquor stores are very close to or in the same development as the major grocery stores in the community. There is no shortage of access to liquor in the City of Abbotsford and the stores are ALREADY conveniently located throughout your entire City.

In closing, I strongly encourage Council immediately do one of the following three options. This will ensure that wine on grocery store shelf initiative of the Provincial Government will NOT result in downloaded social costs to the City Of Abbotsford. If Abbotsford's Mayor and Council does not act immediately it dilute or lose its authority it has over this important issue. Please act now.

Option A (inline with North Cowichan) permanently and immediately restrict all alcoholic beverages for retail on grocery shelves;

Option B (similar to Maple Ridge, Kamloops, etc.) immediately pass a bylaw to ensure all new alcoholic retailer locations have to be at least 1km away from existing alcoholic retailers (as the crows flies from main customer front door to main customer front door); and

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Option C (similar to City of Vancouver) ensure Abbotsford Council has a voice and ultimate say whether or not to allow wine on grocery shelves. In order for this to occur Council must immediately restrict with wine on grocery shelves until the City completes a full review

President RISING TIDE CONSULTANTS LTD. cc Mr. Jake Rudolph, Acting City Manager

www.risingtideconsultants.ca 1620-1130 West Pender Street, Vancouver, BC, V6E 4A4 604-669-2928 $1: City of Vancouver Land Use a11dDevelop111e11t Policies and Guidelines Community Services, 453 W. 12th Ave Vancouver, BC VSY /V4 "ll' 604.873.7000 fax 604.873.7060 [email protected]

LIQUOR STORE GUIDELINES

Adopted by City Council on November 2, 2004 Amended January 18, 2007, June 6, 2007 and January 19, 2010

January 2010 Contents

Page

1 Application and Intent ...... 1

2 Types of Liquor Stores ...... 1 2.1 Categorization ...... I 2.2 Conversion Process ...... I

3 Location and Number of Stores ...... 1 3.1 Type I Stores ...... 1 3.2 Type 2 Stores ...... 2 3 .3 Type 3 Stores ...... 2 3 .4 General...... 2

4 Separation from Family oriented uses ...... 2

5 Liquor Store Operations ...... 2

6 Process and Administrative Considerations ...... 2

City of Vancouver January 2010 Liquor Store Guidelines Page I Map #1. Liquor Stora Locations in Selected Local Shopping Areas v ~ ) ·------{

"C ..... °'0 °' °' "'c: ·-(/) c: ~ 0 g m 16 ~ +:i <; g w CG ,, c ,, 0 ..e 0 ~~ co 0 ..5 J .J Cll Cll g ..c L.. ~ ~ (.) °' CJ) CJ) ,, 0 .!:: .s ..... a. a. ffl n n 0 0 Ol

City of Vancouver January 2010 Liquor Store Guidelines Page3 Description of Selected Local Shopping Area (LSA) Boundaries December 2006

LSA# Description I W. 10th : Tolmie to Discovery 2 W. 4th : Highbury to Collingwood 3 W. 16th N side, A Ima to Dunbar and south side opposite, Dunbar 17th - 19th 4 Dunbar: lane S of King Edward to W 30th 5 Dunbar: W 39th to lane S of W 41 st; W 4 lst: Dunbar to Collingwood 6 W 4th : W of Bayswater to Trafalgar 7 Broadway : Collingwood to Larch 8 4th Avenue: Burrard to Balsam 9 Broadway: Vine to Arbutus; Arbutus: Broadway to 12th 10 Arbutus Village Shopping Mall 11 W. Blvd: 37th to 49th ; E. Blvd: lane N of 4 lst to 49th; W. 41 st : Larch to Maple 12 Granville: 10th to 16th 13 Granville: W 64th to S of71st 14 Oak: W 21st to S of King Edward, King Edward Mall 15 Cambie: 12th to 16th , east side; w 16th to W 19th 16 Cambie: W 39th to W 43rd, Oakridge Centre 17 Main to Gore; Pender, Keefer 18 Main Street: 12th to 16th 19 Main Street: 16th to 33rd 20 Main Street: 48th to 51 st 21 Fraser: 23rd to 28th 22 Fraser: 41 st to 51 st 23 Kingsway: Inverness to Perry, Knight: lane N of Kingsway to King Edward 24 Commercial: Lane N of Venables to Grandview Highway North 25 Commercial: Grandview Hwy. S to 16th, Broadway: E and W of Commercial 26 Victoria: 37th to 44th, 47th to 50th 27 Hastings : Semlin to Renfrew 28 Kingsway: Earles to Nanaimo 29 Renfrew: Graveley to 3rd, I st Avenue: S side, Kaslo to Renfrew 30 Kingsway: Rupert to Boundary 31 Champlain Mall, 54th and Kerr 32 East Fraserlands A Denman: Nelson to Robson, Robson: Denman to Cardero B Denman: Nelson to Davie, Davie: Denman to Cardero c Davie: Jervis to Burrard D Robson: Bute - Burrard, Alberni: Bute - Burrard, Burrard: Smithe - Georgia E Bute: Robson to Coal Harbour F Davie: Burrard to Homer G Davie: Homer to False Creek & Marinaside Cres. H Abbott - Keefer - Pender Granville Island J I st /2nd Avenues, Main/ south of Terminal K Broadway/Main/Kingsway

City of Vancouver January 2010 Liquor Store Guidelines Page 4 1 Application and Intent These Guidelines are to be used in conjunction with those District Schedules of the Zoning and Development By-law and Official Development Plans which conditionally permit the liquor store use. The guidelines provide direction regarding a range of factors, including location and spacing as well as operational and administrative considerations. The applicant should consider all of these factors in the preparation of their development permit application. City staff will use the guidelines in the assessment of development permit applications for a liquor store, including redevelopment of existing liquor store premises. This assessment will be based on the characteristics of the site and surrounding area and the details of the development proposal. The permitted product range ofa liquor store is defined in the Development Permit.

The intent of these Guidelines is to provide reasonable access to liquor stores while minimizing impacts on neighbourhoods.

2 Types of Liquor Stores

2.1 Categorization There are 3 types of liquor stores, categorized as follows :

(a) Type I (i) A store 280m 2 (3000 sq.ft.) gross or less that sells any combination of beer and/or wine, including cider and coolers. (b) Type 2 (i) A store 280m 2 (3000 sq.ft.) gross or less that sells any combination of beer, wine and spirits. (c) Type 3 (i) A store over 280111 2 (3000 sq.ft.) that sells any combination of beer, wine and spirits. (ii) Type 3 stores may be a maximum of2300m 2 (25,000sq.ft.) gross in size.

2.2 Conversion Process (a) A Type I store may apply to become a Type 2.

3 Location and Number of Stores New locations for Liquor stores are focussed in cettain id_entifted Local Shopping Areas. These Local Shopping Areas come from adopted Community Visions, Local Area Plans, or Council Policy, and are intended to serve the daily needs of residents.

General commercial areas are commercially zoned areas that contain significant retail, but are not Local Shopping Areas because their focus is more on serving employees, tourists, or citywide/regional customers rather than nearby residents.

Local Shopping Areas are shown on the attached map# I, and their boundaries are described in the attached table. Also shown on map #I are the general boundaries for the Central Broadway and Downtown areas.

3.1 Type 1 Stores (a) A maximum of one Type I store may locate in any identified Local Shopping Area that: (i) does not have a liquor store of any type; or (ii) has an existing liquor store that is restricted by provincial legislation to the sale of wine only products . (b) In the Downtown and Central Broadway areas, where there are no identified Local Shopping Areas, additional Type I stores may be located, provided each is 500m or more from any liquor store. (c) An existing Type I store in a Local Shopping Area may relocate within its Local Shopping Area. An existing Type I store that is in a general commercial area may relocate within its general commercial area.

City of Vancouver January 2010 Liquor Store Guidelines Page 1 (d) Existing Type 1 stores may expand up to the 280111 2 (3000 sq.ft.) gross size limit.

3.2 Type 2 Stores (a) Existing Type 2 liquor stores may remain in their current locations, or relocate close by (i.e. within the same Local Shopping Area or general commercial area), provided that the new location meets the guidelines as well or better than the previous location. (b) Existing Type 2 stores may expand up to the 280m2 (3000 sq.ft.) gross size limit.

3.3 Type 3 Stores (a) Existing Type 3 liquor stores may remain in their current locations, or may relocate close by (i.e. within the same Local Shopping Area or general commercial area), provided that the new location meets the guidelines as well or better than the previous location.

3.4 General (a) One store only (of any Type) may locate in each of the two emerging neighbourhoods of Southeast False Creek and the East Fraserlands. The locations in these emerging neighbourhoods will not be considered until planning has proceeded to the point where commercial areas are identified and approved. (b) One store only·(of any Type) may be located in new Local Shopping Areas, identified through neighbourhood planning programs. Proposed locations in these emerging Local Shopping Areas will not be considered until these new Local Shopping Areas are defined and approved. (c) No liquor store of any Type should be located in the Downtown Eastside or Gastown areas where existing Council policy does not permit new liquor retail outlets (see attached Map #2).

4 Separation from Family oriented uses (a) No liquor store should be located within 150111 ofa church, park, elementary or secondary school, community centre or neighbourhood house.

5 Liquor Store Operations With regard for the primary focus of the business (range of liquor products sold), the following factors will be taken into consideration:

(a) Hours of operation (b) The manageability of the impacts related to: (i) traffic (ii) parking, with particular concern for short term parking (iii) loading, with an applicant provided loading operations plan detailing how and when loading will take place and how large delivery vehicles will be accommodated ( c) Handling of bottle returns (design and operation)

6 Process and Administrative Considerations The main process steps will be as follows:

(a) The Applicant submits a copy of the Liquor Control and Licensing Branch (LCLB) preliminary approval letter. (b) Staff conduct a neighbourhood notification of affected neighbours (size of notification area will be determined for each application). (c) The applicant posts signage on-site, advising of the liquor retail proposal; this signage should be in keeping with the City's normal sign preparation and installation procedures. (d) The Development Permit may be approved for a limited period of time subject to the discretion of the Director of Planning. (e) Applications deemed controversial by the Director of Planning may be referred to Council for advice.

City of Vancouver January 2010 Liquor Store Guidelines Page 2 Map #2. Downtown Eastside/Gastown Liquor Retail Restricted Area

Existing Type 2 (Boutique) Liquor Stores are located at: 375 Water Street

Existing Type 3 (Regular) Liquor Stores are located at: 555 West Hastings 769 East Hastings

City of Vancouver January 2010 Liquor Store Guidelines Page 5 29 April, 2016

The Honorable Christy Clark Premier of British Columbia Box 9041 Station PROV GOVT Victoria, BC V8W 9El

Dear Premier Clark:

As representatives of Argentina, Australia, Chile, Mexico, New Zealand, the United States, and the European Union, we would like to bring the following matter to your attention.

Access to the Canadian market for wine is a shared concern of the signatories of this letter. Canada is a top export market for wine. Canadian imports of wine are at or near $2 billion annually.

Last year, British Columbia implemented new wine sale regulations that only allow sales of British Columbia wine on groce1y store shelves. In contrast, non­ British Columbia wine, including imported wine, cannot be sold on regular store shelves, but only in a "store-within-a-store" with controlled access and with separate cash registers. The "store-within-a-store" is also limited by a one­ kilometer rule which severely restricts the number of groce1y stores that could qualify.

In that the regulations appear on their face to accord less favourable treatment to . impo1ted wine than they do to British Columbia wine, we question whether they are consistent with Canada's commitments as a member of the - specifically the national treatment obligations under Article III:4 of the General Agreement on Tariffs and Trade 1994. Accordingly, we request that British Columbia amend the relevant regulations in order to ensure that the sale of wine in grocery stores is permitted on a non-discriminatory basis.

Thank you for your attention to this matter.

Sincerely, (~?o \

/i(j~_/1-· ·His Ex ·cllency To~ William Negus High C >mmissioner of 1\ustralia lo Canada ..... ,' .

.~·. -.· .- ·~- ....

( . Her Excellency Norma Nascimbene de Dumont Ambassador of Argentina to Canada

Cc: The Honorable Chrystia Freeland, Minister of International Trade Centre for Addictions Research of BC PO Box 1700 STN CSC Victoria DC V6W 2Y2 Canada Tel (250) 472-5445 E·mall [email protected] Universit)l Web www.carbc.uvlc.ca ofVkto1'ia

June 17, 2016

Mayor Nicole Read City of Maple Ridge 11995 1-laney Place Maple Ridge BC V2X 6A9

Dear Mayor Read ancf fellow Councillors

Re: Proposed restrl ctlons on the sale of alcohol In Maple Ridge

I understand that the City Council of Maple Ridge has been conslderf ng whether or not to re qui re a 1 l

As I l

Firstly I would lil

Additionally, the Idea that low volumes of alcohol are good for health is coming under Intense scientific scrutiny and the evidence for this hypothesis Is looking Increasingly shalcy. This Is all to say, that along with the other well-known Impacts on risl

Turning to the specifics of whether restrictions on the placement of liquor outlets impact consumption and harm, I also provided copies of published research examining this question In the BC context. We were able to study changing densities of different types of llquor store (government and private) across the 89 loc~I health areas of the province and examh1ed how government suppllecl data 011 alcohol sales, hospital admissions and. deaths related to alcohol changed as densities changed. There were significant and measurable positive associations between increased local density of private liquor stores during a recent period of rapid privatization with each of the outcomes of per capita consumption, alcohol attributable hospital admissions and deaths. For example, after controlling for changes in alcohol prices we have estimated that a 10% increased density of private stores was associated with 1-2% Increases in alcohol attributable disease and Injury. None of this should be surprising as such associations have been observed with similar policy changes around the world where !hey have been obse1vecl ai1d sllldied l)y impa1i ial and independent scie11llsts. I would be l1appy to answe1· questions or provide more evidence shoulcl this be possible or l1 sef1.1I.

From the available evfdMce, I suggest that the ·1 km separation rule would l1elp minimise the higl1 levels of alcohol-related morbidity and m~rtalfty - not to mention associated healthcare and policing costs. I hope you wlll consider these Issues seriously when deciding how to balance the wish from some consumers to have more convenience and choice. In my experience, the strength of this desire for convenience Is often overstated by commercial vested Interest groups. Impartial surveys of public opinion usually find strong levels of support for restricting the number of llquor outlets, their hours of sale as well as for maintaining the government on alcohol sales. I also note that alcohol . consumption and related harms have been rising especially qulcl

There are special concerns regarding the availability of alcohol In grocery stores in addition to the above. Chains of groce1y stOres have Incredible economies of scale and they wlll be to undercut liquor prices In traditional liquor stores leading to Increased competition which wlll further drive up consumption and related harm. The experience. in the UI<, for example, has been the explosion of the. availablllty of extremely cheap alcohol alongside, In some cases, more expensive essential food items. Furthermore, the proposal to restrict grocery store sales to BC made products wlll be most certalnly challenged legally under International trade laws and Is unlikely to stand up. The Innocuous sounding proposal to mal

Sincerely ~- 1 ( /· ,.~ - -t' /07 ..1 , i:~,<~firfAi.f:k?/ Tim Stocl

December 17,2015

MEDIA TIPS AND LEADS

SHARP RISE IN BC DRINKING RATES:

BC has seen the largest annual jump in alcohol consumption in more than a decade, a rise equivalent to 15 bottles of beer per person per year. The average British Columbian now a volume of alcohol equivalent to 528 bottles of beer or 100 bottles of wine per year.

"This increase coincides with reforms to the BC liquor laws introduced in early 2014," says Tim Stockwell, director of University of Victoria's Centre for Addictions Research (CARBC).

In 2013, close to 24,500 hospital admissions and 1,281 deaths in BC were attributed to alcohol-related causes. According to analyses and modeling done by CARBC for the Ministry of Health, the impact of this 2.9 per cent uptick in consumption will increase that annual toll by an additional estimated 655 hospital admissions and 31 deaths.

Changes to policy include: the introduction of happy holll's; easing of restrictions on licence extensions (e.g. sid hill operators); increasing competition between private and government liquor stores; and the removal of numerous restrictions on where and when alcohol can be sold and consumed.

The rise in allllual consumption in the last fiscal year is the largest increase since CARBC started its Alcohol and Other Drug monitoring in 2005. Statistics Canada has not yet updated its data for 2014/15 but the ratt;is of alcohol consumption in BC are bucldng the national downward trend.

Year round and patiicularly during the holiday season, CARBC recommends people who plan to familiarize themselves with Canada's low-risk drinking guidelines: no more than two drinks a day or 10 per week for women, and three drinks a day or 15 per week for men, with an extra drink allowed on special occasions.

--30--

An info graphic is available for download here.

Media Contacts:

1/2 Dr. Tim Stockwell (UVics Centre for Addictions Research of BC) at 250-472-5445 or [email protected]/> Suzanne Aheame (University Communications+ Marketing) at 250-721-7636 or [email protected]

Follow us on Twitter: @uvicnews

UVio media relations />services: www.uvic.ca/communicationsmadceting/media

UVic media releases and ot11er resources for journalists are available on the Internet at "http://communications.uvic.ca/media".

212. APPENDIX B PAGE 1OF5

Appendix B: Briefing Note from Vancouver Coastal Health

BRIEFING NOTE Date: December 3, 2015 Prepared for: City of Vancouver Issue: Increases in alcohol accessibility in the City of Vancouver

Background

While alcohol enjoys widespread social and cultural appreciation, its recreational use comes at a price. Alcohol causes an estimated 7.1% of all premature deaths in Canada and 9.3% of 1 2 premature death and disability combined, well above the worldwide average of 4.6%. • Given the higher sales of alcohol within British Columbia than the Canadian average, the effects on our local population is likely even larger. 3

Alcohol's contribution to death and disability comes from a surprisingly broad number of diseases and_injuries. Most evident are harms related to impaired driving, alcohol-related violence, alcohol addiction, and alcohol poisoning. Many consequences are far more insidious. Alcohol increases self-inflicted injuries and falls, worsens a number of psychiatric and 1 4 neurological conditions, and contributes to poor health outcomes for mothers and babies. • Alcohol quietly increases the burden of a wide range of chronic diseases, ranging from many 1 4 different cancers to cardiovascular disease to gastrointestinal disease, among others. •

Additionally, alcohol's effects are not just the problem of heavy drinkers - its effects on 5 7 chronic disease) cancer and injuries are significant for moderate drinkers as we11. - Beyond the health outcomes, associated productivity losses and social disruption make this substance 51 8 highly costly to Canadians - a bill up to $600 for every single Canadian each year. • Yet demand for alcohol can be modified - it is driven by availability, price, marketing and varying social norms. Conversely, the best alcohol policies are strongly associated with reductions in alcohol consumption. 9

The current situation

The City of Vancouver is considering expanding accessibility to VQA wine in grocery stores. Given the evidence; we see a number of risks associated with sales of VO.A wine in grocery stores. While the literature on incremental introduction into grocery stores is limited, it 10 14 suggests increases in consumption. - In particular, this retail environment may facilitate longer hours of sale) larger display size and store space devoted to liquor, and easier underage purchases. Other jurisdictions have found that grocery stores are more likely to sell 15 16 to underage youth than full-service establishments. • These concerns may be addressed by strict.policies and vigorous enforcement. However, more difficult to address are other consequences: liquor advertising and promotion that are more visible to youth, increased retail competition resulting in reduced prices, and the potential to increase impulse purchases or trade-offs of alcohol for nutritious food.

5 Figure in 2015 dollars APPENDIX B PAGE 2 OF 5

Although the VOA wine proposal does limit alcohol available to wine, other jurisdictions have experienced this type of limited introduction as the "thin edge of the wedge." Retail outlets and trade groups have successfully challenged such limited implementations in other jurisdictions, resulting in further liberalization than was originally intended. 12 Nonetheless, if there are corresponding trade-offs in accessibHity the impact may be mitigated. For example, if there were to be no additional liquor licenses available for the City of Vancouver, transfer of a from a full-service liquor establishment to a grocery store with VOA wine would reduce the availability of cheaper, more potent liquor. Research evidence Therefore, while increasing access to alcohol can seem appealing because of increased convenience, we urge caution. There is strong scientific evidence that higher liquor outlet 17 21 density is associated with increasing harm from alcohol. • Consumption increases, along with injury, crime, violence, alcohol-related deaths, and other medical harms like sexually transmitted infections.

Independently of density, privatization of liquor outlets ls also associated with increased harm. 22 The reasons for this may include changes in hours and availability as well as changes in advertising, promotion, and degree of compliance with regulation, all of which are also 22 24 associated with increased alcohol-related harm. • Higher density of outlets also leads to greater competition, which can lead to lowering of prices - a potent driver of consumption.

British Columbia has already experienced substantial increases in alcohol consumption over the past 15 years, concurrent with increasing density of liquor outlets and privatization of liquor sales. 25126 Studies of the increase in private and total liquor stores in BC in the 2003· 2008 period demonstrated substantial increase in hospitalizations and alcohol-related death, 25 27 28 consistent with the evidence from other jurisdictions. • ' One study estimated conservatively that a 20% increase in private store density increased local alcohol related mortality by 3.25%, and this likely underestimated long-term effects. 28 Considerations

The City of Vancouver's submission to the Provincial Liquor Review in 2013 emphasized the City's understanding of these important issues and its desire to retain local government input into liquor licensing and land use decisions. 29 It specified the importance of municipal regulation of liquor establishment location and hours as well as retention of control over the number and location of liquor retail outlets in its municipality. It pointed out that there is already very easy access to retail liquor and expressed concerns about liquor sales in grocery stores. We agree with these thoughtful recommendations and their focus on health and safety. Unfortunately, together with the large number of other alcohol liberalization policies being implemented by the provincial government, we feel there will be a substantial aggregate increase in availability of alcohol in Vancouver. Given the piecemeal approach to releasing policy changes, it is very difficult for the City to assess the overall impact and develop an effective global policy. For example, Vancouver's maximum density standards in zoning for lfquor establishments are supported by solid evidence. However, the sum of the many recent APPENDIX B PAGE 3 OF 5

changes in liquor availability in a variety of licensed establishments may subvert the effectiveness of current zoning. Recommendations We strongly recommend the City develop a comprehensive Municipal Alcohol Policy3°-32 that reviews local alcohol-related health and safety issues and develops a global strategy within the City's jurisdiction to protect its residents. This strategy ideally would include a synthesis of all new availability measures resulting from the province's liquor review, a review of best practices for decreasing harms from alcohol, and examination of zoning by-laws and other municipal powers. Local alcoh.ol policies can be an important and effective way to promote moderate alcohol consumption, support community values, raise awareness of harms, influence 30 2 community social norms and promote healthier communities. (pg l

As highlighted above, policy areas with good evidence of reducing alcohol-related harm 4 33 include: •

o Minimum pricing indexed to inflation, differential pricing by alcohol content, both on and off-premise, including of discounting or loss-leading o Robust licensing requirements, including hours and days of sale, density limitations, specification/standardization of drink sizes, disallowing drink promotions o Enhanced enforcement and proactive policing directed at on and off-premise establishments o Limitations on drinking in public spaces and at public events o Local restrictions on marketing and promotional activities For example, the City could consider tightening hours of sale and earlier venue closures, implement continuous re-evaluation of existing and new liquor licenses for community impact and health/safety, and restriction of alcohol sponsorship for civic events. Other examples can be found in the Centre for Addictfons Research of BC's publication "Helping Municipal Governments Reduce Alcohol·Related Harms. "34 We strongly recommend that the City wait to implement changes to accessibility, even in pilot project form; until such a plan is in place. Once all the provincial changes are public, the City can respond With a comprehensive approach to implementation of changes and mitigation of harm. We would be happy to help the.City to develop such a strategy and are confident the City will continue to treat the health and well-being of its residents as paramount. APPENDIX B PAGE 4 OF 5

References

1. Rehm J, Mathers C, Popova S, Thavorncharoensap M, Teerawattananon Y, Patra J. Alcohol and Global Health 1: Global burden of disease and lnju'ry and economic cost attributable to alcohol use and alcohol-use disorders. Lancet. 2009;373(9682):2223-33. 2. Shield l

outlets: impacts on alcohol consumption and damage: a systematic review. Alcohol Alcohol [Internet]. 2009;44(5):500-16. Available from: http://alcalc.oxfordjournals.org/content/alcalc/44/5/500.full.pdf 19. Treno AJ, Gruenewald PJ, Johnson FW. Alcohol availability and injury: the role of local outlet densities. Alcohol Clin Exp Res [Internet]. 2001;25(10):1467-71. Available from: http://www.ncbi.nlm.nih.gov/pubmed/11696666 20. Livingston M. Alcohol outlet density and harm: Comparing the impacts on violence and chronic harms. Drug Alcohol Rev. 2011;30(5):515-23. 21. Livingston M, Chikritzhs T, Room R. Changing the density of alcohol outlets to reduce alcohol­ related problems. 22. Hahn RA, Middleton JC, Elder R, Brewer R, Fielding J, Naimi TS,et al. Effects of alcohol retail privatization on excessive alcohol consumption and related harms: A community guide systematic review. Am J Prev Med. 2012;42(4):418-27. 23. Hahn RA, l

I

Recommendations: 19. The Province should develop and Implement a retail model that meets consumer demands for more convenience by permitting the sale of liquor In grocery stores. Government should continue to restrict the total number of retail outlets and require separation of grocery products and liquor. This reflects the views of health and safety advocates and the acknowledged safety benefits of restricting minors' access to liquor. 20. Introducing liquor in grocery stores should be phased In, giving public and private liquor stores time to adjust to the new retail model. 21. In consultation with Industry, government should develop a policy that standardizes the types of non-liquor products that can be sold in liquor retail outlets. 22. As a grocery model Is developed, government should Joolc at consistency In operating hours for licensed, rural agency and manufacturer retail stores.

I believe thttt 1rlcohol sho11M be sold in grocery stores, much like tobttcco is (ttt customer service counters, behind the till tu here it's in11ccessible for minors to stettl). Adults should be 11ble to p11rch11se liquor the same way tue p11rch11se food 1111d tob11cco, it 11111kes sense. It ruill not incrmse the 11mo111tt th11t I drink, but m11ke i( more 11ccessiblefor me to pm'Chttse it tuithout httving to find the closest liquor store th11t htts restricted hours - ttJbich is another thing I think should ch1111ge. Sell liquorpttst 1J. Alber/it vendors can sell it until 2 am. If people coming home ji·om the ba1; 1vho want to st11y 11p 1011gC1; c11n purch11se liquor on the ftlay home or to the 11fterparty, it will reduce binge drinking mu! eliminate the mentality of 'get it tvhile )'Off. still can: C/11ire, Oct. 9

I tuill also 11tld my comment requesting grocery stores be allowed to sell beer mu/ 1vi11e. JtVhile I think everyone 11skingrecog11izes there are potential problems th11t need to be 11ddressetl 11.1e see thttt this is well 1111111aged in other countries. Even here in B. C., tobacco sales have similar ch11llenges. But controls are in pince to reduce the risks associated with h11ving tob11cco in groceJ')' stores. !~11 sure with 11!! the smart people looking 111 this ; 1011 can find a tvay to m1t11ttge the 1'isks 11Jith 11/cohol tts tvell. .Mm-k, Sept. 20 I ~

LIQUOR,POLICY REVffi.W

Licensees pick up nhnost all their products at LDD stores with the exception of D.C. beer. Most B.C. beer is shipped The DistiIIing Sector 'cJirectly to licensees by breweries and a'small amount of RRtionalization of production of distU!ed spirits across B.C. winery product is picked up by licensees at Industry Canada has largely res11lted in British. Columbia-licensed Agency Stores. · distillers becoming bottling plants for product imported in Licensee Retail Stores receive all their product directly bulk from central Canada or from foreign sources. The from B.C. breweries and wineries. Industry Agency Stores distilled spirits indt,tstry in British Columbia does not enjoy also receive !heir product directly from D.C. producers. marketing advantages over products from other provinces. Domestic spirits from all Canadian sources are marked up 5 percent less than Jmport~d spirits. Existing Marketing Treatment of the British Columbia 1.Jeverage Alcohol 2 . .PRIVATIZATION Industry One of the most important questions before this committee British Columbia-produced liquor products are given ls whether or not to encourage furthel' privatization of preferred treatment Jn the form of Liquor Distribution liquor retailing. Many people, firms and organizations Branch markup, listing practices, distribution channels, and addressed this topic, with the majority recommeading rctalllug outlets. We wlJl. examine i.11 tnrn !he preferential caution. · treatment extended to the wine grope growing and winery The Import Vintners and Spirits Associallon and a few sector, the brewing sector and the distilling sector. other groups and individuals called for complete privatization of the ref ail function, TJ1e Retail Wine Committee, composed of B.C. commercial wineries and 'fhe Wine Grape Growing and major food retailers, asked that B.C. wine be made available in food stores. They presented surveys of their Winery Sector Cllstomers which they felt indicated st1·011g support fol' their The elements that constitute the province's recognition of request. . the grape and winery sector in British Columbia form the The main British. Columbia brewers volced their support most complex regime and are collectlvely known as the for the present system of LDB and licensee retail stores. British Cohunbia Wine and Grape Policy. They arglled, howevel', that if wlne were made available in Contractual commitments exist between the commercial food stores, it would then be necessary to accorcJ the same wineries and grape growers lo accept the total wine .grape treatment to beer for competitive reasons. They were han•csl from the licensed growers al prlcc.1 set by the Grape concerned that privntization would significantly increase Marketing Board. distribution costs which wollld ultimately be passed along to the consume!'. Commercial wineries benefit from LDB policies that Hotel and pub operators, alcoholism treatment groups, pl'ovide: .unions, mosl" municipalities, some liquor agents and - a markup differential of 60 percent relative to imported suppliern as well as most private cililens recommended no (domestic 50 percent, impored 110 percent); further privatization or, indeed, a return to a govel'nrnenl· - restriction of imported wines to a maximum package operated absolute mo11opoly. size of 1.5 litres; and Many submissions indicated tl1at increased availability of - a guaranteed number of general listings to a maximum liquor is linked with increased consumption. We heard thls of 66, without quota requirements, for most domestic from professionals, police forces, mnny municipalities and commercial winel'ies; numerous individuals. Police forces felt that they \vould need increased resources and manpower if availability were - an allocation of approximately 25 percent of LDB store signlficantly increased. J,n other words, we were urged to shelf space. conclude that if there )Vere more liquor ontlets, alcohol· m LDB stores, estate wines are marked up nt 15 percent. related prnblems would increase. Both commercial and estate,.winel'ies are 11llowed to Research, for the most part, appeared to support this establish off-site winery stores. Licensee Retail Stores are conclusion. A study done by Brian Rush, et al., through also permitted to sell British Columbia wines. the Addiction Research Foundntlon, concluded that government policies restrktiug the retail availability of alcoholic lJeveragcs reduce the per capita rates of alcohol The Brewing Secto1· consumption. Similar research by Scott MacDonald reached In tile Province of British Columbia, breweries enjoy: the same conclusion. His data indicates that when alcohol - exclusive distribution of draught beer; is made more accessible, more alcoholic beverages are consumed. He also concludes that heavier drinkers nrc - exclusive distribution of packaged hcer through Licensee Retail Stores; likely to lie uffccted more by availability increases. For the most pa1·t lhe lilcrnture suggests there is u - a lnrge numher of listings (20 - 25 per major brewery). relatio11ship-bctwee11 1he increase in the number ol' retail A markup differential of 33 percenl, rdative to Jmporls, outlets and increased consumption. This rclaliomhip is b1 I (domestk' 50 percent, imported 83 percent) is designed to clear concerning the numhcr of licensee outlets. compensate the l.DB for its distribution costs on imported Afler carefully considering nil the s ubmi ssion~. we haw I beer and cost .~ of handling and dis'posiug of imported·lll'er concluded that there may be a rclntion~hip he111 cen the empty conlniners. Donw;tk brewers distribule lheir own availnbilily of nlcohol and the rare or l'OJl\Ulllplion . I produc1s. Acl·orcfingly, we arc rcr .~uadcd there ,houltl he rc11rkti1111' 37 I ,~;:QJJOR POLICY REVIEW

. . ~ 'I/ ; , ; upon the ease with which alcohol is a'(ailable in the re1·ail should be available for sale in licensee retail stores, It is recognized that the government must give carefnl ·. i market. I It was clear during the hearings ·and in the letters and consideration lo this and other recommendations in the . I submissions that the majority we're opposed to privatization report in light of the negotiations currently underway and its inherent Increase in availability of liquor. l.:...,---, between Canada and its trading partners. With the foregoing as background, we considered :-·"" \ 17. The discount on products to LRS operators shold be 10 whether to allow beverage alcohol sales in food stores, ' .I I percent. Adclitionnlly, all pl'oducts except domestic After carefully conslderlng the merits of the arguments, the commercial beer may be obtained by the LRS from a ! committee is persuaded that such significant increases in designated LDB liquor store. availability would be unwise. We do 1not believe thut privatizalion is strongly supported by the majority of These changes improve the LRS programs to the benefit British Columbians and we arc concerned that such a move of everyone concerned. would lead to increased consumption and abuse, The addition of imports provides equality of opportunity particularly among the "populations at risk" to which we between import and domestic beer and wine which will referred earlier. Furthermore, upon inspection, it became benefit the import producers anq agents, clear the present system of retailing does or could produce ,Domestic wineries are expected' to benefit because quite acceptable levels of nvailabilit.Yand customer broader assortment of wines should enable an LRS t convenience, For the same reasons we do not support the attract more wine customers. This is expected to inc1 sale of beverage alcohol in drug, department or general sales of domestic wine. Furthermore, domestic wine! merchandise stores. · benefit from the fact that their product will now be available to the LRS operator from his regular LDB thus relieving the wineries of onerous freight costs, JRJE

"' I City Establishment Address Type

Abbotsford Abbotsford Village GLS 117-2070 Sumas Way BC Liquor Store 189 Abbotsford Village GLS 40-32500 S. Fraser Way BC Liquor Store 149 College Park Liquor 104-1520 Mccallum Private Liquor Store Store Road Liquor for Less.com- 102-2618 McMillan Private Liquor Store Glenn Mountain Road Abbotsford Liquor Barn 2520 Montvue Avenue Private Liquor Store

Sumas Liquor Store 101-1201 Sumas Way Private Liquor Store

House of Liquors 36363 Augustan Pky 5 Private Liquor Store Abbotsford Highwayman Pub 32470 Simon Avenue Private Liquor Store

Character's Liquor Store 2509 Pauline Street Private Liquor Store

Clearbrook Liquor Barn 30-31940 South Fraser Private Liquor Store Way Fraser Valley Inn 33790 Essendene Private Liquor Store Avenue Liquor for Less.com - #1-31205 Maclure Road Private Liquor Store Ellwood Clayburn Liquor Store 150-3033 Immel Street Private Liquor Store

Mt. Lehman Liquor M115-3122 Mt. Lehman Private Liquor Store Store by Liquor for Road less.com Liquor Giant 32131 Marshall Road Private Liquor Store

Whatcom Wine & 100-1900 North Parallel Private Liquor Store Spirits Road Sevenoaks Liquor Store 401A 32900 South Private Liquor Store Fraser Way Liquor for Less.com 1-Marshall Road Private Liquor Store

Sumas Mountain Liquor 135-2362 Whatcom Private Liquor Store Store road