LCBO blindsided by Ontario cancelling pilot to scan customer ID's at northern stores, exec emails show
CBC
LCBO executives said they were blindsided by the Ontario Ministry of Finance's decision to cancel an LCBO anti-theft pilot not long after it was announced, according to documents obtained by CBC News.
Finance Minister Peter Bethlenfalvy quashed the "controlled entrances" pilot less than 48 hours after the LCBO announced it, despite after already having been briefed about it weeks in advance, according to the documents.
The pilot would have seen security guards scan customers' identification and their personal data collected at the controlled entrances of six stores in Thunder Bay, Sioux Lookout and Kenora starting this spring.
It would have been similar to security measures Manitoba Liquor and Lotteries (MBLL) rolled out in 2020 at certain provincially run Liquor Mart stores in response to a surge in thefts. Since then, there has been a major reduction in thefts and robberies, the MBLL says.
Emails between LCBO executive managers that were obtained through a freedom-of-information request show confusion and exasperation with the ministry's decision.
"Frustration and disappointment were very apparent" amongst LCBO leadership, said chief retail officer John Summers in an email to president/CEO George Soleas on Feb. 15.
"It honestly felt like we had every base covered in advance of this one and there wasn't anyone or any area that was giving us the red light," Summers said in responding to a 4:17 a.m. email from Soleas.
The documents show senior LCBO executives briefed the Ministry of Finance on the pilot and shared details of the plan multiple times in the weeks leading up to its announcement.
CBC News requested interviews with ministry officials and the minister, but instead was sent an emailed statement.
"Following the announcement of LCBO's pilot program, the ministry heard concerns from stakeholders and community partners and requested the program be cancelled," said the statement.
The LCBO denied CBC's request for an interview and refused to answer emailed questions about specific pilot details. CBC also inquired about how much time and money was spent on the now-cancelled pilot program, but has not received that information.
"The government's decision to cancel our planned controlled entrances pilot program came as a surprise," said notes prepared for a Feb. 28 meeting between Soleas and Deputy Finance Minister Greg Orencsak.
The pilot's cancellation is among various examples of provincial moves causing problems for the LCBO, said Ian Lee, an associate professor at the Sprott School of Business at Ottawa's Carleton University.
In April, Premier Doug Ford, in a Sunday night email to the CEO, ordered the LCBO to bring back paper bags immediately, according to documents obtained earlier by Radio-Canada. The order caught LCBO executives by surprise and sent its management scrambling to procure new supply.
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