A top Canadian wine and spirit importer and distributor has been fined for illegally paying retail stores to promote their products and influence alcohol sales, Ontario’s alcohol watchdog said.
The Alcohol and Gaming Commission of Ontario (AGCO) ordered a $40,000 penalty against alcohol manufacturer Mark Anthony Group Inc. after investigating concerns that Mark Anthony Wines had been unfairly promoting its products in the province.
Since November, the AGCO found that the company had paid more than 130 retailers up to $225 per store to display posters promoting their brands and were encouraged to buy and stock higher amounts of the products featured in the promotions.
Under the Liquor Licence and Control Act, licensees and their representatives are explicitly prohibited from offering financial benefits or inducements to retailers in an attempt to increase the sales or availability of a brand of alcohol.
“This practice creates an unfair advantage that disproportionately benefits large multinational corporations with greater financial resources at the expense of smaller local and independent companies,” the AGCO said in a news release. “More importantly, it unfairly influences what products are stocked and promoted, potentially limiting consumer choice and compromising the transparency essential for a healthy, competitive market. The AGCO is committed to ensuring that alcohol sales are conducted fairly and transparently for the benefit of all Ontarians.”
The Mark Anthony Group of Companies is connected to small batch Ontario distillers like Dillon’s and helped launch popular canned alcoholic drinks in Canada like White Claw and Mike’s Hard Lemonade.
