LCBO

[djlavey]

Can someone explain to me why the LCBO has to advertise?

Given that they have a monopoly on all bottled liquor would it not be in their better interest as an government sponsored booze hegemony to reduce the price of their products in order to make them more affordable?

I yearn for this knowledge.

Comments

[trolleycrash]

It's very simple:

The LCBO is a government sponsored business, not operated entirely by tax dollars. Ads increase sales, which lead to increased profit, which in turn in used to improved services (potentially to lower prices), or is funneled back into the government for other purposes.

Here are some facts on what happens to that money.

[djlavey]

THAT was very informative.

[trolleycrash]

I aim to please. You aim too, please.

[stevetassie]

I don't think the original question was what purpose does advertising serve, but why does a company that has a monopoly need to advertise. Sure, there are probably some people out there who, when they see an LCBO ad, think "Oh, yeah, I need to pick up some wine" but do those few extra sales really pay for the expense and effort of reminding us about the only place in the province we can buy booze?

[horrorshow]

Brand awareness.

I mean...yeah, what Thom said.

[loftwyr]

It's not the LCBO advertising. It's the manufacturers advertising and, in Ontario, they are forced to advertised through the LCBO

[djlavey]

I fail to see how that can be true given the nature of booze advertising - particularly through the club district. Take Bacardi, or Coors Light for instance...

[loftwyr]

All liquor advertising is done through the auspices of the LC. That's how the Ontario liquor laws work. They okay all advertising and provide all advertising feedback. I have worked with the head of LC advertising and thats the way it goes.

Some of the advertising mentions the LC as a reminder of where you get it, that also defers some of the cost.

Beer has more of a free hand as they are self run.