Everything about Soci T Des Alcools Du Qu Bec totally explained
The
Société des alcools du Québec (
English:
Quebec Alcohol Corporation), often abbreviated and referred to as
SAQ, is a provincial
Crown corporation in the
Canadian province of
Quebec.
Organization
The SAQ holds a
monopoly over distribution of
alcoholic beverages in Quebec. It acts as a wholesaler for
wine and other low-alcohol-content beverages, which can be sold outside SAQ branches, usually in
dépanneurs and
grocery stores.
Spirits and
apéritifs can only be sold in SAQ stores.
The
Act respecting the Société des alcools du Québec (R.S.Q. S-13) is the official piece of legislation governing the SAQ's operations and management. The sole share-holder is
Her Majesty in Right of Quebec, representative of the Quebec state, to which approximately 500 million
CAD in
dividends are distributed each year.
The
Société des alcools du Québec headquarters is located in
Montreal and had sales of $2.4 billion in
2005.
Banners
The SAQ operates under five different banners throughout the province of Quebec:
- SAQ Classique: varied selection, in towns and villages where there's only one SAQ branch
- SAQ Express: top-selling products, in large urban centres, extended business hours
- SAQ Sélection: extended selection, professional service and counselling
- SAQ Signature: two exclusive stores in Montreal and Quebec City
- SAQ Dépôt: warehouse-style stores, bottle-it-yourself, wholesale packages
The corporation also distributes its products through a
webstore. A selection of wines and low-alcoholic-content beverages are also available in
supermarkets.
Alcohol consumption in Quebec
As the provider of alcohol in Quebec, the SAQ's market data gives a quick overview of alcohol consumption in the province. In its
2005 annual report, the Corporation confirms 66.3% of sales were
table wines. The remainder is shared among various products: 15.7% were
spirits, 8.9% refreshing beverages (such as
coolers and
sangría), 5.4% special occasion beverages (includes
champagne,
rosé wine and
Port) and 2.9%
apéritifs (such as
vermouth and
Pastis). Note that
beer doesn't appear within this data as most beer sales are outside the SAQ's monopoly.
The report also includes
Statistics Canada data comparing alcohol consumption in Canada. Quebec falls in second place in both wine (17.4 litres per person per year) and beer (93.9 litres) consumption, behind the
Yukon territory. On the flip side, Quebec is last (12th) in spirits consumption (with 4.1 liters on average).
Legal drinking age
The
legal drinking age is 18 in Quebec and there are restrictions as to who can purchase alcoholic beverages (R.S.Q. I-8.1). The legal age for the purchase of alcoholic beverages is 18 years. By law, SAQ stores can't sell alcohol to minors or adults intent on distributing to minors (including the holders of parental authority). Nonetheless, underage persons are not restricted from SAQ stores. Official policy is to ask for photo identification to any customer who looks under 25.
Holiday-season strike of 2004
On
19 November 2004, the Corporation's 3800 employees went on strike. They were protesting because their contract had expired two years prior and negotiations on its renewal weren't making any progress. Trade unions were concerned by the work schedules, the status of part-time and temporary employees and the spectre of privatization.
In the first month or so the strike went mostly unnoticed but as the holiday season kept approaching, many Quebecers wished the unions would strike a deal with SAQ executives. In fact they didn't and the strike went on until
11 February 2005. On that day SAQ stores reopened their doors after the employees voted in favour of the union-negotiated deal. The new contract included pay increases and the creation of 250 new full-time jobs.
Price-fixing scandal
In January
2006, SAQ
President &
CEO Sylvain Toutant admitted the corporation had asked
European suppliers to increase their prices in order to avoid a drop in revenues. This was concomitant with the falling value of the
Euro in relation to the
Canadian dollar. A drop in wholesale prices would have mandated lower retail prices. Both vice-presidents involved in the affair left the SAQ soon thereafter. The scandal ensued public outcry and renewed calls for the
privatization of the crown corporation. The Minister of Finance,
Michel Audet, rejected calls for privatization but agreed to launch an investigation into the SAQ's commercial practices and the behaviour of its board members.
Selection
There is a noticeable difference in the selection of products available at SAQ stores compared to other provincial liquor monopolies. Difference between provincial liquor monopolies selection are expected since the market is different from one province to the other.
Further Information
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