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| Formerly | Alberta Gaming and Liquor Commission (1996–2018) |
|---|---|
| Company type | Crown corporation |
| Predecessors |
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| Founded | 1996 |
| Headquarters | 50 Corriveau Avenue, |
Area served | Alberta |
Key people | Kandice Machado(CEO)[1] |
| Owner | Government of Alberta |
| Website | aglc |
TheAlberta Gaming, Liquor and Cannabis Commission[2][3] (AGLC) is an agency of thegovernment of theCanadian province ofAlberta, and regulatesalcoholic beverages,recreational cannabis, andgaming-related activities. References to cannabis were added to AGLC's name and governing legislation (without adding an extra "C" to the organization's long-standing initials) ascannabis in Canada moved towards legalization in 2018.[citation needed] AGLC was created in 1996 as theAlberta Gaming and Liquor Commission by combining the responsibilities and operations of the Alberta Liquor Control Board (ALCB), Alberta Lotteries, the Alberta Gaming Commission, Alberta Lotteries and Gaming and the Gaming Control Branch.[citation needed] The currentchief executive officer as of 2020[update] is Kandice Machado.[1][4]
In 2023, the AGLC made $618.9 million in revenue from cannabis sales, $1.9 billion in sales from gaming (slots, VLTs, online gambling, bingo, lottery tickets, raffles, and pull tickets), and $850.4 million in revenue from alcohol and liquor.[5] Combined with the AGLC's other income streams, in 2023 their net income was $2.42 billion, up from $2.09 billion in 2022.[5] The vast majority of this income went into the Alberta government's General Revenue Fund.
AGLC operates in accordance with:
Alberta Gaming, Liquor and Cannabis also enforces certain aspects of theTobacco Tax Act[7] under a memorandum of understanding with Alberta Finance which administers the act, and licenses all racing entertainment centres at racetracks under the authority of theHorse Racing Alberta Act.[8]
Alberta is currently the only Canadian province to have completelyprivatized its liquor retailing.[citation needed] All other provinces maintain government ownership and control over much of the liquor industry, especially with respect todistilled spirits.[citation needed] Alberta's privatization was carried out in late 1993 and early 1994 under the auspices of one of AGLC's predecessors, the ALCB.[9]: ii-1
Following cannabis legalization in October 2018, the AGLC was the sole entity permitted to retail cannabis online within the province and the only legal wholesale distributor of cannabis to private brick-and-mortar retailers. As of March 8, 2022, private retailers became permitted to retail cannabis online and the province has since exited the retail business. However, the AGLC remains the only legal wholesale distributor of Cannabis to private retailers.[10]
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The sale and distribution of beverage alcohol in Alberta had been conducted privately, underlicence until 1916 when, during the height ofCanada's Prohibition during the First World War, theLiberal government called areferendum in which Albertans voted in favour of theLiquor Act, which closed private liquor stores and the sale of alcohol beverage other than weak beer in privately owned bars.[citation needed] (Alcohol was still available from willing pharmacists.)[citation needed]
Prohibition achieved the result that family savings doubled within a short time, and the use of mental asylums and prisons dropped.[citation needed] The policy of prohibition was affirmed in a 1920 referendum.[citation needed] Meanwhile, theRoyal North-West Mounted Police (RNWMP) passed over enforcement to the newly createdAlberta Provincial Police (APP).[citation needed] However, there grew a hard-core of bootleggers who used guns against police enforcing the law – resulting in the death of two policemen, George Osgoode and Stephen O. Lawson, in Alberta.[citation needed] TheUnited Farmers government that replaced the Liberals in 1921 called a referendum to allow voters to show their determination to continue with prohibition, bring back the pre-war wild times or establish government-owned stores and allow increased sales through tightly regulated taverns.[citation needed] The referendum was conducted in November 1923 and Albertans chose a government-controlled system.[9]: 1 The Liquor Act was replaced by theLiquor Control Act and the Alberta Liquor Control Board (ALCB) was created.[citation needed] The firsthotels to be relicensed were thePalliser Hotel inCalgary and theHotel Macdonald inEdmonton.[citation needed]
The ALCB maintained tight control over the Alberta liquor industry for the next seven decades.[citation needed] Hotels that met the strict requirements for a liquor licence had to adhere to strict rules regarding the décor, cleanliness and aura of the establishment.[citation needed] According to historian David Leonard, the idea was to makedrinking establishments as sparse as possible.[citation needed] Patrons were not allowed to stand up with their drinks in hand, andentertainment in a licensed beverage room was prohibited.[citation needed] Although women were allowed to drink alongside their male counterparts at first, "mixed" drinking was later blamed for riotous behaviour, and in 1928 the Liquor Control Act was amended so that special rooms had to be created for "ladies and escorts".[citation needed] In the 1930s, the ALCB hired armed officers to enforce the Liquor Control Act.[citation needed] TheRoyal Canadian Mounted Police (RCMP) assumed enforcement duties (where no municipal police had jurisdiction) after taking over provincial policing duties from the APP in 1932.[citation needed]
Beeroff-sales were permitted from hotels starting in 1934, however the sale of wine andhard liquor remained more tightly controlled.[citation needed] As was the case in most Canadian provinces, the only legal way to purchase spirits in Alberta was to travel to a deliberately uninviting ALCB store, where the customer had to apply on a paper form indicating what they wanted to purchase.[citation needed] The requested product was then fetched by a staff member after the customer'sage was carefully checked.[citation needed] The ALCB did not permit individualized packaging for wine or spirits.[citation needed] It purchased wine and spirits from wineries and distillers in bulk barrels, then bottled them into stone jars and bottles with the ALCB brand for resale in stores.[citation needed] ALCB stores were few and far between (especially in rural areas), and spirits were frequently watered down prior to bottling[citation needed].
ASocial Credit government assumed office in 1935, going on to dominate Albertan politics for the next three decades.[citation needed] Thesocially conservative governments ofPremiersWilliam Aberhart andErnest Manning were slower to relax liquor laws compared to most of their contemporaries in other provinces.[citation needed] In one notable policy, the Social Credit government refused to license commercialairlines during their tenure and took vigorous steps to ensure that commercial flights were not serving alcohol whilst travelling through Albertaairspace.[citation needed]
The Alberta government and ALCB began loosening some restrictions in the 1950s and 1960s.[citation needed]Clubs andcanteens could be licensed from 1950 onwards.[citation needed] In the1957 Alberta Liquor Plebiscite, voters in and near Edmonton and Calgary voted overwhelmingly to de-segregate beverage rooms; however, men and women were not allowed to drink together province-wide until 1967.[citation needed] Having repealed the requirement for customer signatures on counter slips to purchase alcohol in 1965, in 1969 the ALCB opened its firstself-serve liquor store in Edmonton.[citation needed] By 1970 the ALCB was no longer bottling products and commercial product packaging became normal.[citation needed]
TheProgressive Conservative government replaced the Socreds in 1971, and moved to loosen restrictions further, lowering thedrinking age from 21 to 18.[9]: 2 Although some Alberta MLA's since then have mooted raising the drinking age back to 19 to match the laws of neighbouringBritish Columbia andSaskatchewan,[citation needed] the lower drinking age remains in effect as of 2021[update].[11] Responsibility for domestic beer warehousing was transferred to theAlberta Brewers' Agents Limited in 1973.[citation needed]
The 1980s saw restrictions relaxed further, with the firstwine stores licensed in 1985[9]: 1 and the first hotel-basedcold beer stores approved in 1988.[citation needed] In 1990 hotel off-sales expanded from beer only to beer, wine and spirits.[citation needed]
The complete privatization of Alberta liquor retailing following formerCalgary mayorRalph Klein's accession of the premiership in 1992 is the most notable event in the ALCB's history, and for many Canadians it is also the most controversial event in the recent history ofalcoholic beverage distribution in Canada.[citation needed] Klein promised Albertan voters the liquor industry would be privatized if he was elected in the1993 election.[citation needed] After he won the election, the Klein government carried out the privatization almost immediately.[citation needed]
Under Municipal Affairs MinisterSteve West, privatization was carried out, and the 202 ALCB liquor stores were systematically sold off.[citation needed] Where private interests believed an existing ALCB store could be profitably operated as a privately owned liquor store, the store continued to operate under new ownership.[citation needed] Liquor stores that were not economically viable in the private sector were closed down with the properties sold to the highest bidder.[citation needed] Between September 4, 1993, and March 5, 1994, every ALCB store was either sold or shut down.[citation needed] With respect to the ALCB stores that were converted to private liquor stores, theAlberta Union of Provincial Employees (AUPE) was deniedsuccessor rights to the private stores. Whereas all non-management ALCB employees in 1993 belonged to the AUPE, as of 2006[update] no privately owned liquor store was known to have becomeunionized except for those owned and operated byLoblaws under theReal Canadian Liquorstore and those owned and operated bySafeway in their grocery stores.
The ALCB initially retainedwarehousing anddistribution responsibilities for wine,coolers,imported beer and spirits. The warehousing operation was contracted out to a private operator,Connect Logistics in June 1994. Connect Logistics leased the ALCB's existingwarehouse inSt. Albert and continues to warehouse all wine, coolers, imported beer and spirits legally sold in Alberta. Domestic beer is warehoused and distributed by Brewer's Distributor Limited. The AUPE was again denied successor rights to the Connect Logistics–operated warehouse and the warehouse thus became a non-union operation.
Privatization was controversial, attracting criticism from people who worried about the social costs of liquor privatization.
ALCB workers had takenstrike action earlier in 1993 causing an interruption in service at liquor stores. Compared to other Canadian provinces, Albertans are generally seen as less friendly to unions, and many Albertans were disappointed by what they interpreted as the union's lack of concern for Albertans' social lives (the strike over theVictoria Day weekend).[citation needed] Some Alberta labour leaders continue to view the privatization as a retaliation against a legal strike. It is still debated whether this strike directly influenced the Tories'election promise and subsequent decision to privatize liquor store, or influenced some Albertans to vote for Klein as a result.
Distribution delays by Connect Logistics became a problem in 2006 with complaints from liquorretailers that they were not receiving stock on time and had empty shelves as a result. Some retailers also initiatedlegal action against AGLC.
In response, AGLC hired a 3rd-party consultant,Price Waterhouse Coopers, to review the province's liquor distribution system.[12] The report was publicly released in March 2007.[12]
The report did not make any drastic recommendations on how liquor products are distributed in Alberta. It recommended that Connect Logistics remain in its role and continue to warehouse and distribute wine, spirits, and imported beer to maintain "stability" in the system.[12]: 4 The biggest difference in this arrangement would now require a formalized contract between Connect Logistics and AGLC including "performance indicators" for things like consumer service and on-time delivery.[12]: 4
One of the more controversial recommendations was for a new warehouse pricing system.[citation needed] In July 2007, AGLC approved the new prices for storage, warehousing and distribution.[citation needed] Connect Logistics claims the new prices better reflected the actual handling costs of each product.[citation needed] Some managers of smaller liquor stores believed that the system worked to the advantage of larger operators.[citation needed]
Over the 2007 Christmas season, the stories of empty liquor store shelves and product shortages disappeared from the media as shelves remained stocked.[citation needed]
A follow-up report was released in June 2009.[13]
Although Alberta has deregulated its retail liquor industry to a greater extent compared to any other province, its Connect Logistics–administered monopoly on the wholesaling of wine and distilled spirits is comparable to the systems which in the U.S. would be considered analcoholic beverage control state. This means that by U.S. standards, Alberta would be defined as a "control" jurisdiction.
When the U.S. abolished prohibition in 1933 the borderingU.S. state ofMontana modelled its own liquor control board on the one in place in Alberta.[14] Montana has made similar changes to Alberta over the years and its present liquor distribution system is still very similar to the present Albertan system. It is considered to be one of the 18 "control" states in the U.S.
In 2007–2008disorderly conduct at and near licensed establishments was identified as a growing problem, particularly in the major cities. The province'seconomic boom and the resulting affluence of its youth were identified as the root cause of the increase inbinge drinking. Some blamed inadequate restrictions on alcohol sales in establishments (compared to other provinces) as contributing to the problem. In July 2008, the Alberta government responded to complaints by police and other groups[15] by introducing new regulations to restrict the sale of alcohol in restaurants and bars. Among other things, as of August 1, 2008:
AGLC is responsible for enforcing these new rules.
In response to the above industry concerns, AGLC instituted a certification course called ProServe.[16] Proserve covers symptoms of intoxication, liquor law, identifying minors, dealing with intoxicated people, and other issues that a licensed establishment may face. As of January 1, 2010, all people selling and serving liquor must be certified.
On November 26, 2010, AGLC temporarily halted registration of beers with an alcohol content higher than 11.9% (while allowing current retail stocks to still be sold).[17] The restriction was lifted three weeks later on December 16, once a new policy had been developed to deal with a potential influx of ultra-high alcohol beers.[18] The new policy equalized markup rates so that high-alcohol beers were treated the same as other liquor products with similar alcohol levels.[19]
On February 6, 2018, PremierRachel Notley ordered AGLC to cease importing wine from British Columbia, as aneconomic sanction against the province's decision to perform further environmental reviews over a proposed expansion of theTrans Mountain Pipeline.[20]
AGLC consists of a board and a corporation. The corporation acts as the operational arm of the organization, while the board is responsible for reflecting the government's direction through policy and regulatory matters.[21]
As of January 2024, the AGLC's board members were:
| Name | Role | Background | Compensation (2022) |
|---|---|---|---|
| Len Rhodes | Chair | SVP & GM ofReebok-CCM's Global Hockey Division, Alternate Board Governor ofCanadian Football League, President & CEO ofEdmonton Elks, Board Chair of Edmonton Chamber of Commerce, First Vice-Chair ofWestern Canada Lottery Corporation. | $148,034.88 |
| Kandice Machado | CEO | Associate at G.P. Coskey. | $332,141.92[1] |
| Tongjie (TJ) Zhang | Board Member | VP ofUniversity of Calgary Graduate Students' Association, VP Internal ofJCI (Junior Chamber International) Calgary, Consultant atKMPG, Board Member of Credit Union Deposit Guarantee Corporation (Alberta), Manager atPwC, Cyber Security Architect at ENFOCOM International Corporation, Senator atUniversity of Calgary, Board Member at Alberta Association of Police Governance, Vice-Chair of College of Alberta Dental Assistants, Commissioner on Calgary Police Commission, Operational Technology Security Architecture atCN Railway. | $59,279.44 |
| Angela Tu Weissenberger | Board Member | Group Head and Senior Industry Analyst, Energy and Chemicals atRoyal Bank of Canada, Board Director atHonens International Piano Competition, Private Sector Board Director atCanada Deposit Insurance Corporation, Owner and Principal of ATW Associates Inc. Married to John Weissenberger, who was the Campaign Manager forStephen Harper in 1993 andJason Kenney in 2017, and current VP Technical Science/External Innovation at theAlberta Energy Regulator.[22][23] | $45,992.32 |
| Jack Fujino | Board Member | SVP Environmental Group atStantec, Board Member of Alberta Chamber of Resources. | $55,050.45 |
| Patti Grier | Board Member | Alderman of Calgary Ward 13, VP Government Relations forCalgary Health Region, Chief of Staff forAlberta Health Services, VP Business Services atCEDA International, Board Member ofRCMP Management Advisory Board | $64,432.57 |
| Wayne Drysdale | Board Member | MLA forGrande Prairie-Wapiti, SVP at Aquatera; Directorships at Alberta Milk Producers, Alberta Beef Producers, Grande Prairie Regional Emergency Medical Service. | n/a |
| Vincent Vavrek | Board Member | Partner at Fletcher Mudryk LLP, Board Member atAlberta Electric System Operator, Chair ofNorthwestern Polytechnic, Founding Director ofNorthwestern Alberta Foundation, Board Member atCPA Alberta, Board Member atAlberta Blue Cross. | $50,959.55 |
| Maureen Moneta | Board Member | Senior Auditor at Kingston Ross Pasnak LLP, Controller atHabitat for Humanity Edmonton, EVP Finance/Technology at University Hospital Foundation, Senior Executive Officer at Rupertsland Institute, Board Member for Edmonton Unlimited, Board Member ofAlberta Indigenous Opportunities Corporation. | $40,766.23 |
| Elan Harper | Board Member | Strategic Planning Analyst forCanadian Airlines, Associate Director ofBell Canada, Manager Oil and Gas Tax atKPMG, Manager International Tax atPwC, Principal Canadian and International Tax atMoodys Tax, VP at StrategyCorp Inc. She is the sister in-law ofStephen Harper.[24][25][26] | $42,385.15 |
Although liquor is retailed in Alberta by private interests on a competitive basis, like its predecessor AGLC has maintained amonopoly over thewholesaling of wine, coolers, imported beer and spirits. AGLC is the wholesale-level purchaser of these products and thus Alberta liquor taxes (which are still high compared to taxes in the U.S.) are termed as theliquormarkup. The wholesaling operation itself is mostly handled by Connect Logistics, a contract distributor based in St. Albert. Maintaining a monopoly over the wholesale business allows AGLC to maintain tighter controls over liquor distribution than an entirely privatized system would allow. In particular it allows the government to ensure that it does not miss out on any "markup" (the bulk of theliquor tax in any Canadian province, including Alberta, is the provincial liquor markup).
Between 1999 and 2006 AGLC operated as part of the Ministry of Gaming. WhenEd Stelmach became premier, he restructured government so there were fewer ministries and ministers. The Ministry of Gaming was abolished following December 2006's reorganization, and AGLC was assigned to report through the Solicitor General and Minister of Public Security, at the timeFrank Oberle Jr. AGLC later reported via MinistersRon Liepert andDoug Horner, until AGLC was directed to report through Treasury Board and Finance toRobin Campbell.[27]
Following the provincial election of 2015, which saw theAlberta New Democratic Party form government, AGLC reported to Treasury Board and Finance MinisterJoe Ceci.[28][needs update]
Alain Maisonneuve, president and CEO of recently renamed Alberta Gaming, Liquor and Cannabis Commission said...
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