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Wednesday, July 30, 2008

LCBO Blamed for Factory Closing

Did you read the news yesterday? A glass factory in Toronto was forced to shut down due to a number of financial reasons, resulting in 430 people without employment. The company issued an international press release listing the reasons for the closure and one of those reasons focused on the LCBO.

The company stated that the LCBO has been focusing on tetra-packs and non-glass containers as part of their 'green' recycling program. Because of this, the glass company felt that the LCBO was partly to blame as the manufacturing of glass for alcoholic beverages continued to decline to the point of the company losing significant amounts of money. They figure the LCBO is encouraging alcohol suppliers to switch from glass containers to either plastic or the aforementioned tetra-pack.

The LCBO issued a statement that only 4.5% of sales account for non-glass containers, which is relatively low when you factor in the fact that the LCBO grossed over $4 billion dollars last year. What wasn't released in the LCBO's statement, but was relayed to me from someone inside the government owned retail chain, is that 74% of the 4.5% of non-glass containers sold in LCBO stores belongs to the aluminum beer can category.

Just an interesting take on the story.

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