Private wine stores will benefit Ontario

This isn't going to be a call to privatize the LCBO.

But it is a call to diversify the marketplace by allowing the creation of privately-owned stores that specialize in wine to run alongside the government-owned LCBO.

The government holds a near monopoly on liquor and wine sales in this province, and has proven reluctant to relinquish its grip.

But expanding wine sales beyond the public sector will benefit both Ontario consumers and an important domestic industry.

Ontario has a growing wine industry that is hampered by limited access to the marketplace.

Allowing private wine stores will open avenues for Ontario's small-and medium-sized wineries, while providing some much needed competition that will provide alternatives for consumers.

The LCBO has vastly improved its marketing of Ontario wines, and is doing much better in offering a variety of Ontario wines on its shelves.

Over the past year, the number of Ontario wineries selling in the LCBO has jumped from about 40 to 63.

But that increase is largely because of a provincial program that offers rebates to offset the LCBO markup for Ontario wineries.

That program expires next year.

As well as the LCBO has been doing of late, there is still much room for improvement.

While the LCBO can be proud of offering more space to Ontario wineries than it did a year ago, the fact remains that wines from 73 Ontario wineries cannot be found on the shelves of the LCBO.

It's disturbing that a winery like Vineland Estates has only four wines on the list at the LCBO, but can offer all 19 of its labels at private wine stores in Alberta.

To keep up and allow the Ontario wine industry to continue to grow, the retail and distribution channels have to be opened up.

There are several models that can be adopted, whether it be a co-operative type of chain store -- not unlike The Beer Store -- something opened to the free market, a select number of licences handed out to individual wineries that meet a certain criteria or something else entirely.

But at this stage, the model isn't the biggest concern.

Before even considering the model for private wine stores, the province has to agree it will move in this direction; that is going to be the greatest challenge.

Successive provincial governments of all partisan stripes have been incredibly reluctant to make any significant changes to the alcohol sale and distribution system in Ontario.

The NDP has little interest in private liquor sales and the Progressive Conservatives balked at privatizing the LCBO. The Liberals commissioned a review of the beverage alcohol retail system shortly after taking office, but promptly shelved the report upon receiving it.

More recently, Premier Dalton McGuinty was receptive to the idea of private wine stores, if that is what the industry wants.

But those are only words. He still has to prove if he has the political will to take this incredibly difficult, but proper, step.