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When you’re the CEO of a large company and your largest shareholder has to correct your actions twice in just a few months, you might want to dust off your resume.

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That’s the position George Soleas, president and CEO of the Liquor Control Board of Ontario, finds himself in.

First, Ontario Premier Doug Ford had to chastise the LCBO for its decision to get rid of paper bags for customers – that was in April.

And this week, Ford had to ask the government liquor monopoly to find an Ontario supplier, as it was asked to do months ago.

Ford’s letter in April asking the LCBO to bring back paper bags for consumers had a tone that suggested the prime minister was annoyed.

“The environmental merits of this decision are questionable, to say the least. Paper bags are an easily recyclable alternative to single-use plastic, which is why the LCBO adopted them in the first place,” Ford wrote to Soleas on April 7 telling him to bring the bags back.

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In July, Finance Minister Peter Bethlenfalvy, whose ministry is responsible for the LCBO, highlighted the need for the government agency to promote Ontario products both on store shelves and when shopping, including finding a supplier of paper bags.

In early October, the LCBO signed a two-year deal with Quebec-based Rosenbloom Inc. The move prompted Ford to send another letter to the LCBO, this time to the man who oversees Soleas, the board chairman , Carmine Nigro.

“Unfortunately, the LCBO’s recent decision to source its paper bags from a company outside of Ontario goes against our government’s directives, as outlined in the Minister’s letter. of Finance sent to the LCBO on July 9. Ontario’s forestry sector is fully capable of meeting demand. for paper bags and ensure these products are made in Ontario by Ontario workers,” Ford wrote.

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The Ford government has been promoting a “Made in Ontario and Buy Ontario” policy since the midst of the COVID-19 pandemic. It should have been clear, especially given Bethlenfalvy’s letter, that the LCBO was supposed to give preference to Ontario suppliers.

It is unlikely that Quebec, which recently passed a bill giving preference to local companies in government contracts, could see its alcohol monopoly award a contract to an Ontario supplier rather than a Quebec supplier.

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It hasn’t been a good year for the LCBO, which experienced its first strike in its 97-year history.

This strike highlighted problems with their online sales, their ability to supply the restaurant sector as promised, and their delivery system. It also subjected the LCBO to a type of scrutiny over other government liquor corporations that it had rarely seen.

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Ontario’s per capita return to taxpayers is only $159, well behind Alberta’s private system at $178 per person, or Saskatchewan’s $187 per person in their newly privatized system. In fact, Ontario’s LCBO provides taxpayers with the second lowest return in the country, trailing only tiny Prince Edward Island.

This drop in the per capita dividend comes even as the LCBO charges higher prices. A 750 ml bottle of JP Wiser’s Deluxe whiskey currently sells for $23.98 in Calgary, but will cost you $32.45 at the LCBO – a difference of $8.47 for a product made in Windsor!

Higher prices and lower dividends mean one thing: the LCBO is a bloated and inefficient organization – one that can’t even meet its paper bag contract.

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There’s also the matter of the lawsuits they face from some of the biggest names in the industry, including Bacardi, Beam-Suntory, Brown-Forman, Corby, Diageo, Forty Creek Distillery and Rémy Cointreau. They denounce predatory practices and allege that the LCBO is involved in illegal activities by retroactively imposing enormous fees on distillers.

The case is still before the courts and the LCBO claims it is simply ensuring fair prices for Ontario consumers, but that argument is undermined by the higher prices charged in stores. Although the lawsuit is led by big distillers, small businesses say the LCBO’s activities could put them out of business.

Paper bag issues are just the tip of the iceberg when it comes to problems at the LCBO. Instead of sending letters to the CEO and board, perhaps it is time for Premier Ford to look for new leadership within the organization.

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