One of the under-reported stories of 2022 was that a handful of 7-Eleven convenience stores were granted licenses to sell beer and wine for both in-store consumption and take away (they have also set up delivery through online delivery apps). In my opinion this may be one of the dumbest moves the AGLC has made in a long time. Allow me to explain why.

My most recent CBC Radioactive beer column discussed this issue. You can listen to that segment here. This post will go a little deeper into the reasons for and consequences of the policy.

First, some facts. Back in December 2021 a northside Edmonton store received a license for in-store consumption of beer, ready-to-drink beverages (RTD) and wine in a designated dining area (cordoned off by a short pony wall). They were also permitted to sell beer and wine for takeaway. The green light for this development was a part of a package of COVID-related changes to AGLC regulations implemented earlier in 2021. At the time of the announced changes most people, including myself, focused on the relaxation of rules around consumption in public parks and restaurant off-sales. Clearly 7-Eleven was paying closer attention.

At the time, 7-Eleven acknowledged the Edmonton store was a pilot and that there were plans to open more. That very thing happened in November 2022 when 7-Eleven announced eight additional stores in Edmonton, Calgary, Leduc, Fort McMurray and Rocky Mountain House. I suspect we will see even more licensed 7-Elevens in 2023. The Alberta locations parallel an an aggressive move in Ontario to gain licenses at dozens of locations for in-store consumption.

I want to be clear that I am not necessarily opposed, in principle, to beer sales in convenience stores (although there are many legitimate concerns). The Quebec model does seem to increase “convenience” for consumers, although not improved quality or selection. Once liquor retail is privatized, there are many ways to ensure adequate and responsible supply of alcohol to customers, and the merits of each can be debated (which I may do another day). My problem is HOW Alberta has gone about doing this and what it means for the industry.

I have two primary concerns. First, this decision stretches the definition of an eating establishment to the point of absurdity. Sure, 7-Eleven serves food. Hot dogs, fried chicken, pizza and other hot greasy things are its anchor. I am sure all of us at one point during a road trip or a late-night, post-pub walk home have popped in to heat up a burrito or scarf some nachos with that weird fake cheese. But does that make it a restaurant? I am skeptical.

I acknowledge 7-Eleven and other convenience chains have been working hard to up their food game as a way to create more value-added business in an increasingly competitive sector. They have built in-house kitchens with dedicated kitchen staff and increased the range of products available. But does that make it a restaurant?

I decided I should experience one myself to decide. I popped in to a location. It was just like every other 7-Eleven store except one end had a small cluster of tables demarcated by a short pony wall. A couple of coolers sat along the back wall with a small selection of beer, wine, coolers, etc. The only effort made to create atmosphere were a few inflatable balloons shaped like beer mugs and champagne bottles handing from the ceiling.

The selection was fairly anemic. I counted 20 different brands, mostly the big corporate beer you would expect. There were five beer from four Alberta craft breweries (I won’t name them). The pricing was slightly higher than most liquor stores. Tall boys ran from $4.59 to $5.49 each depending on brand and six packs of craft labels were $19.99 (the discount beer were, naturally, cheaper). However, they charge the same price for in-store consumption as take-away, so it makes for a fairly cheap pint compared to a pub.

The coolers are locked, so you need to get the clerk to get the beer for you. They either take it to your table or the checkout counter if buying for takeaway. They don’t offer a glass, but did find a disposable plastic cup upon request.

The experience was what you would expect – drinking beer in the middle of a convenience store. Your look over at racks of chips and other snacks, ads for sale items. A couple of clerks worked at the checkout. People came and went, making small purchases. Gas fumes wafted in every time the door opened. It felt like being in a fishbowl. It was decidedly unpleasant. And definitely not a restaurant-like experience.

In my opinion this push by 7-Eleven is more about finding a back door way to allow them to sell beer and wine like a liquor store. This is something they have been pushing hard on for years but, until recently, governments have been reticent to go down that path. I cannot imagine the volume being moved in-store is significant. People shopping at 7-Eleven are in a rush. How many will decide to stop for a half hour to have a pint. Their food menu admits this – all things that can be consumed quickly. And 7-Eleven will certainly never be a destination location. However, people grabbing a six/four-pack at the same time they buy some chips or gas is potentially a lot more lucrative. Hence their push.

The clerk I spoke with confirmed that almost nobody drinks in the store and the vast majority of their sales are take-away. This is about expanding retail sales to convenience stores.

Which brings me to my second, more wonkish, concern. Frankly, this change has the potential to upend Alberta’s liquor retail system. It is being done without any consultative process with either Albertans or other players in the industry or without any open recognition of its potential impact on the liquor retail industry. Worse, it is being implemented in a way that clearly advantages one of the largest convenience store chains on the planet. In my mind, a policy that clearly provides an unfair advantage to one for-profit player at the expense of others is bad policy.

Am I over-reacting? Let me tell why I don’t think I am.

There is a significant public interest in deciding how and where alcohol is sold. When sold improperly alcohol can create a number of harms relevant to the broader community. A policy shift of this nature should be preceded by public consultations that facilitate open debate about its merits and risks. In the past governments have eschewed liquor in convenience stores over fears of under-age consumption, drinking in vehicles and other safety concerns. I do not see how those concerns have disappeared. Albertans have a right to understand why the government changed direction.

If hundreds of convenience stores start selling beer, they quickly become a significant competitor, with the playing field stacked in their favour. Licensed liquor stores face a range of restrictions on how they structure their business, what they can sell and where they can be located. Liquor stores cannot sell food or convenience goods. But conveniences stores can both sell liquor AND a wide range of other products.

The lack of public discussion and the under-stated way this policy was introduced also gives a significant upper hand to 7-Eleven and other large chains compared to independent convenience store owners. They had the fore-knowledge of its passing (how many mom-and-pop stores check the AGLC policy handbook regularly?) and the financial means to quickly make the necessary renovations to comply.

That is why I argue it is a policy that provides unfair advantage.

As a final note, the consumer will not benefit from this. While it might marginally increase convenience by increasing the number of places one can purchase beer, early signs suggest it will not lower prices, will not expand selection and choice, and will not address public health and safety concerns.

But we now get the opportunity to sip on a can of beer in the middle of a gas station. Oh joy!