B.C. reduces licensee wine markup
The B.C. government has changed its proposed wine wholesale price formula, to take effect April 1. The markup remains at 89 per cent for the first $11.75, and drops from 67 to 27 per cent on the rest. This change considerably cuts the markup on wines priced over $20.
- Under the wholesale model released this fall, a base mark-up of 89% would have been applied to the first $11.75 per litre of wine and a second tier mark-up of 67% would have been applied to the remainder.
- The change will decrease the second tier mark-up from 67% to 27% - adjusting wholesale prices so they are more consistent with what industry sees today.
- Revenue from liquor sales in B.C. contributes more than $1.2 billion towards the Province’s important health and social programs.
The Liquor Distribution Branch (LDB) will announce its new retail prices for licensees on March 20. It has promised to keep them in line with current retail prices.