How La Ponce Microdistillery is Diversifying with BBQ Sauces and Fighting for Fair Regulations in Quebec

2023-05-22 23:41:33

Charles-Hubert helps his dad David to put the BBQ sauces in boxes.

Photo : Radio-Canada / Philippe Grenier

We do everything as a family, the children are never far away, launches Véronique Labbé all smiles. Co-owner of the La Ponce microdistillery with her husband David, she picks the aromatics that are found in the gins herself. We wanted to have a distillery representative of the terroirexplains the one who is also production manager of the microdistillery, which opened in November 2021.

On the other hand, Véronique Labbé is disenchanted when she thinks of the increase perceived by the SAQ on all bottles sold in the microdistillery. We must give back a part to the SAQ to cover operating costs, although [les spiritueux] be sold here [et non en succursale].

Three BBQ sauces with each behind three spirits with the same label color.

BBQ sauces from the La Ponce microdistillery are flavored with a company spirit. The color of the labels makes the link between the two products.

Photo : Radio-Canada / Philippe Grenier

She cites the example of one of the gins The Severinoiswhich is sold only at the microdistillery, but which is still constrained by the rules of the SAQ. The amount to be returned to the state company represents almost half the cost of the bottle, she laments. It greatly restricts our income possibilities.notes the mother of four children.

Diversification BBQ

Considering the monopoly of SAQ and the large quantity of gins on the market, the owners of La Ponce launched BBQ sauces to stand out. They produce two BBQ sauces flavored with their gins and another sweeter sauce flavored with their maple acerum. Acerum is a type of drink obtained by the distillation of alcohol from the fermentation of maple sap.

[Les clients] leave with a small souvenir and it’s a small income for us. A non-negligible income to meet the share given to the SAQ on spirits.

« To strike people’s imagination, on a bottle of spirits at $45.75 or a sauce at $10.99, I make roughly the same amount net. »

A quote from Véronique Labbé, co-owner of La Ponce microdistillery

Of the requested change

According to SAQ, the markup collected on a bottle sold for $26 is $13.28, or 51.1% of the bill. If the bottle is sold on the premises of manufacture, an amount of $2.04 per bottle representing the cost of sale is withdrawn and given to the producers. Provincial, federal and alcohol taxes represent the sum of $8.26, or 31.7%. That leaves just over 17% for the vendor price.

A graph with several data on the sale of local spirits, a 750 ml format.

A chart illustrating the costs of selling a $26 spirit.

Photo : Source: SAQ

The Union québécoise des microdistilleries (UQMD) is not asking for the abolition of the complete mark-up on the places of manufacture, but is asking Quebec to make allowances for sales in microdistilleries, i.e. not to collect the costs attributable to the marketing of the product.

SAQ […] regarding 15 to 16% of the bottle before taxes. A significant amount”,”text”:”What we are demanding is to no longer pay the mark-up portion which represents the services not rendered by the SAQ […] approximately 15-16% of the bottle before taxes. A significant amount””>What we are asking for is to no longer pay the mark-up part which represents the services not rendered by the SAQ […] approximately 15-16% of the bottle before taxes. A significant amountsays the president of theUQMD, Joel Pelletier. Moreover, wine, beer and cider producers are not affected by the increase in the SAQ.

Joël Pelletier stands in front of the camera.  Vats are behind him.

Joël Pelletier is the president of the Union québécoise des microdistilleries. (File photo)

Photo: Radio-Canada / Francois Gagnon

For Joël Pelletier of theUQMD, distilleries are an essential tourist attraction for the regions and their situation is precarious. According to him, two-thirds of the 70 microdistilleries in Quebec are in deficit. His business, the St. Laurent Distillery, filed for bankruptcy and insolvency protection in mid-March. For him, it is the result of financial problems caused by the overly regulatory context which must now be adjusted to reality in 2023.

Questioned on the subject during the study of budgetary appropriations on May 3, the Minister of Finance Eric Girard closed the door to a change, in response to a question from the MP for Matane-Matapédia, Pascal Bérubé.

Eric Girard speaks, standing at the National Assembly.

The office of the Minister of Finance, Eric Girard, mentions being sensitive to the requests of microdistilleries. (File photo)

Photo: The Canadian Press / Jacques Boissinot

By email, Minister Girard’s office explains that it has put in place initiatives to help microdistilleries. He cites in particular the sale of their products on the production sites and the industrial license which offers them a unique status which allows them to produce without limitation.

A local product

Several microdistilleries in Quebec, such as La Ponce, in Bellechasse, are located in small municipalities. What we find deplorable is that it is harming the local industry somewhat. We offer a small serviceexplains Véronique Labbé.

A man behind a trading counter wraps a piece of meat in a plastic dish.  On the counter, you can see BBQ sauces from the La Ponce microdistillery.

Yvon Ouellet from the butcher’s shop La bouchée double wraps a beef flank steak marinated in one of the BBQ sauces from the La Ponce microdistillery.

Photo : Radio-Canada / Philippe Grenier

The company has regarding fifty points of sale in Quebec. The La Bouchée Double butcher shop, located not far from the microdistillery, sells La Ponce BBQ sauces. They want to emphasize local products. One of the BBQ sauces served as a marinade for flank steaks in its display at the entrance.

Does the future of microdistilleries depend on the diversification of their offer? The owners of the La Ponce microdistillery have taken this direction and they hope to see the regulations change.

« If we can’t make money in our shop, unfortunately, it will close, hence the idea of ​​creating new products. »

A quote from Véronique Labbé, co-owner of La Ponce microdistillery

The company also plans to launch other products during the summer, in addition to doing public markets to make itself better known.

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