In a surprising twist within Alberta’s liquor market, the sight of 4L plastic jugs of vodka selling for under $50 has prompted a swift and controversial review by Service Alberta and Red Tape Reduction Minister Dale Nally. The value-priced vodka, which stirred attention on social media, has raised questions about responsible pricing, product quality in the distillery industry, and the implications of government intervention in retail alcohol pricing.
During a recent news conference, Minister Nally expressed his concerns, stating, “I don’t think a four-litre plastic jug of vodka adds to the quality of the distillery industry we have in this province,” and further commenting on the pricing, “I don’t think that it is responsible pricing to price it like that.” The minister highlighted that while the product complied with provincial rules and regulations, its presence on shelves at such a low price was unsettling.
Pictures of these jumbo jugs, labeled “Value Vodka,” and retailing at $49.95, became the subject of heated discussions, leading Nally to contemplate legislative steps. He has since tabled an omnibus bill, which if passed, would grant him authority to regulate liquor prices within the province. While the proposed legislation has the potential to allow swift action on these concerns, If the bill does not proceed as planned, he will ask Alberta Gaming, Liquor and Cannabis (AGLC) to look into the product and pricing, he said.
In a response to the public’s mixed feedback, T-Rex Distillery, responsible for producing the 4L vodka format, announced they would be halting production, although the product has been on the market for approximately a year. A statement from the distillery indicated that the AGLC had approved their pricing. T-Rex, alongside other craft distillers, has expressed suffering from a lack of responsible pricing, following a 2020 AGLC rule change that eliminated a requirement for distilleries to produce 80% of their spirits in-house, a decision that forced many distilleries to lower prices in order to remain competitive.
Minister Nally has clarified that the government is not planning to impose floor pricing for alcohol, emphasizing social responsibility and maintaining the province’s reputation for high-quality distillery products. His recent legislative efforts, encapsulated in the Red Tape Reduction Statutes Amendment Act, cover broader changes beyond the liquor industry, but the vodka pricing debate undeniably stands out as a contentious issue with far-reaching implications.
Retailers like Super Value Liquor have since ceased the promotional pricing in light of the minister’s perspective, though the regular price remains at $60. Meanwhile, T-Rex Distillery has signaled a return to production due to customer support, aiming to restock shelves with a new price.
Relevant articles:
– Service Alberta minister says either he or the provincial regulator will review how a large plastic jug of vodka landed on liquor store shelves selling for less than $50.
– Alberta cabinet minister says no floor prices coming in jumbo vodka jug controversy, St. Albert Gazette, Wed, 10 Apr 2024 00:43:51 GMT
– Service Alberta Minister takes aim at discounted 4-litre vodka jugs, Yahoo News UK, Sat, 13 Apr 2024 23:34:55 GMT
– Edmonton distillery behind jumbo vodka jugs wants apology, CityNews Calgary, Fri, 12 Apr 2024 23:37:30 GMT