Wine prices stay the same as province reverses decision to increase mark-up
Posted January 30, 2015 3:30 pm.
This article is more than 5 years old.
VANCOUVER (NEWS1130) – Expect wine prices to stay the same now that the province is reversing a decision to increase wholesale costs for retailers.
The move was prompted by concerns from the industry, particularly for wines priced at more than $20.
Worried retailers felt they would have to pass on their higher costs, to the consumer.
“So we have amended the wholesale mark-up for this category to better align the new wholesale prices with the prices the industry sees today,” explains Attorney General Suzanne Anton. “The goal is to keep the revenues roughly the same and our goal is to keep the prices roughly the same. Now of course prices change over time but on April 1st our goal is that they should be roughly what you’re seeing right now.”
Under the originally proposed model, a base mark-up of 89 per cent would have been applied to the first $11.75 per litre of wine. A second tier mark-up of 67 per cent would have been applied to the remainder. Now that 67 per cent is dropping to 27 per cent.
