Towards the end of wine merchants in Quebec?

The Régie des alcools won its case against the holder of a restaurant permit who, according to it, called into question the SAQ’s monopoly by putting more emphasis on wine than food, which it perceived as ” accessory “. However, establishments of this type, known as “wine merchants”, were multiplying.

Boires, a Montreal establishment opened two years ago, has just lost its restaurant permit. The reason: “it is not enough to add a small bag of popcorn to an order of 12 bottles to comply with the law”, invokes the Régie des alcools, des courses et des jeux (RACJ) in its judgment.

Such a decision could force other establishments of the type to close down, even if the demand is there and the business model is viable, underlines Frédéric Laurin, professor of economics at the University. from Quebec to Trois-Rivières (UQTR).

In a decision rendered on October 13, the RACJ ruled that Boires was not a business whose primary purpose was the preparation of meals, but rather the sale of wine, by the glass and also by the bottle, to take away. .

Regulars of the place will not be surprised: Charles Landreville is an importer of natural wine, made by artisan winegrowers. He was at the creation of the Boires wine import agency, 10 years ago. The pandemic turned the world of catering upside down and it was in this movement that he launched his restaurant project where small things to eat were served and where customers could get bottles of wine to take away, condition of also purchasing “prepared” food on site.

At Boires, we popped popcorn, roasted nuts and mixed olives. By purchasing a package of these snacks, the customer could also put good wine in their basket.

“We are criticized for putting wine before food,” explains Charles Landreville, in a room filled with empty bottles and non-alcoholic wine.

The RACJ judgment says that Boires, the restaurant, made 80% of its turnover from the sale of alcohol. However, according to the holder, no provision in the law indicates proportions to be respected in terms of income generated by sales of wine and those of food.

Charles Landreville maintains that his establishment respected the rules. And maybe he could be the first to fall.

In recent years, businesses that adopt this formula of refreshment bars, wine merchants or wine merchants have multiplied in Quebec, and particularly in Montreal. These are establishments that attract wine lovers. At Boires, customers could grab a board of charcuterie and a drink on site. This is the case in several establishments, where you can also simply pick up a bottle while purchasing food.

The advantage: you will find rare or privately imported vintages, which you can buy individually. If you order wine from an agency, you must purchase a full case. By going through a wine merchant, it is possible to pick up the bottles of your choice, one at a time. With a food.

A ploy?

The RACJ does not see things the same way. In its judgment against Boires, the administrative court even recalls the monopoly role played by the SAQ. “The impression that emerges is that the holder acts as a wine merchant who operates a wine boutique and not as a business carrying out primarily and habitually the preparation and sale of food on site. However, in Quebec, due to the monopoly held by the SAQ, this business model is not authorized for the holder of a restaurant license,” we can read in the judgment.

“The Court cannot see anything else in the holder’s actions than a ploy to allow it to sell non-compliant bottles of wine with a restaurant license,” we also write.

At UQTR, Frédéric Laurin questions the merits of this judgment. “Is it in the public interest to make such a decision? What is the government’s interest? Taxes are collected just as much,” he recalls.

Mr. Laurin also emphasizes that these places where you can taste while eating a piece of charcuterie are the very consecration of the pleasure of wine. “We are able to settle down, to taste. Wine is fun and it comes through eating and chatting. The waiter explains a lot of things to us. »

“The concept does not compete with the SAQ,” explains Charles Landreville, who explains that he sold his wine more expensively than at the SAQ, once all costs were added.

The RACJ refused to comment on its decision. This is also the case for a few other merchants who adopt a similar business model and who have preferred not to speak publicly for the moment. However, they question the motivations behind this revocation, while Quebec has allowed the proliferation of this type of establishment for three years.

Who will be the next one ?

In light of the judgment rendered, Professor Laurin would not be surprised if other establishments suffered the same fate. Opinion shared by Charles Landreville, who believes that the judgment could be used in the case of several other similar establishments, because the administrative court is against the wine merchant or wine merchant model. And there are now a lot of them.

“To the extent that the Régie is informed through its inspectors or a police force of breaches of the same nature with regard to an alcohol license holder, this holder would be likely to be summoned to the same way and to have such a sanction imposed on them,” RACJ spokesperson Joyce Tremblay mentioned by email.

Located a stone’s throw from Chez Boires, the Cave de Mamie also recently received a visit from RACJ inspectors who wanted to compare wine sales and food sales. The place offers sought-after bottles, which must be accompanied by food when checking out. However, explains Max Rosselin, co-owner of Mamie, the business model is different from that of Boires since the Cave was born after the neighboring Mamie restaurant. The food offering is exhaustive, customers who stop by the Cellar often do so after discovering an interesting vintage at the restaurant. And they take a charcuterie board, a specialty of the place, to take away.

At Boires, the revocation of the license is particularly hard to swallow in this fall when business is slow for the sale of wine, throughout Quebec. Restaurants are ordering fewer bottles from importers because their customers are drinking fewer of them in the dining room.

And the fall does not promise to be easy: Charles Landreville has decided to challenge the Régie’s decision. These days he is appealing to the industry and the public for crowdfunding of the legal costs that will be incurred by this battle which he would have done well without.