My Beer Store is a Rite Aid.

Like Many Americans, I enjoy a beer or two on Friday and Saturday nights, and often on other deserving evenings as well. When my supply is low, I hike down to the local party store and grab a cold six pack and take it right back home for my enjoyment. You would think it would be like that everywhere.

Think again. In places like Ontario, Canada, right across the border from where I now sit, you have to purchase your beer for your at-home use almost without exception from a place called The Beer Store. Even the bars must buy from them.

It is not exactly run by the government of the province, merely being a state sanctioned almost total monopoly conveniently owned to the tune of 98% by the proprietors of Labatt and Molson breweries (a sliver of ownership goes to the Japanese company that owns the Sleeman Canadian brand). Labatt and Molson, I'm sure not without coincidence, are the two largest breweries in Canada.

Why worry about this? For the simple reason that it gives a great example of what's wrong with monopolies, even ersatz 'private' ones such as this. Among other things, what they can do is block small competition from easy distribution by charging shelving fees to the tune of $45,000 per label. This is before we even mention the fact that competition is limited anyway by the force of how long the individual stores stay open (I can buy beer until 2AM here in Detroit, while most Beer Stores are closed by 11 at the latest) as well as, obviously, having no price competition.

I can buy a case of Labatt Blue at a local drug store typically for $14.99. At the Beer Store, it's over $30. Even factoring in monetary differences between US and Canadian currency, the difference is, shall we say, considerable. Beer Store representatives say they're treating everybody equally. I know of no one who likes the idea of equality meaning gouging everyone identically.

Such market limitations are likely contributors to arrogance on the part of the big brewers. Labatt is currently suing a small Ontario beer company for selling a brew whose label is too similar to that of a lesser known Labatt brand. Clearly, they want to keep their control of the market as tightly as they can, and apparently aren't too worried about who knows about it.

Sure, it's just beer. Yet it strikes me that the ones intoxicated are the companies. They hold the power to control the flow. The consumers ought to sober up to the reality that they're the ones forced to drink the swill.