‘Tied Houses’ – Updated LCRB Approach

This is what the updated LCRB policy on “Tied Houses” says:

Generally, tied house relationships between licensees (specifically liquor primary, food primary, private liquor/wine store, or the business location of a caterer) and manufacturers or agents are prohibited under the Liquor Control and Licensing Act.

 

“Tied house” refers to a relationship between a manufacturer/agent and another licensee, if the relationship puts the licensee in the position of being likely to promote the sale of that manufacturer’s/agent’s liquor products over another manufacturer. A tied house relationship may result in the licensee benefitting more when they sell the liquor of that manufacturer or agent.

In Europe and the UK, these relationships are much more common, with pubs often being owned, or franchised by large Breweries etc. Here ‘Brew Pubs’ are the most common example.

In BC, Directors and officers of a private corporation are now included when determining if a tied house relationship exists. This means if there is a cross over of ownership / shareholders for both a Licensed Manufacturer / Agent; and Hospitality or Retail Liquor establishments they supply liquor to; LCRB may identify this as a “Tied House Relationship”

If you hold a liquor licence that includes ‘Tied House” Terms and Conditions, please feel free to reach out with questions, or support, especially if you want to report a potential “Tied House” association to LCRB; you are seeking to have existing Terms and Conditions modified, or removed; or you want LCRB to consider  a “Tied House Exemption” for your licence.