Direct-To-Consumer Sales Stakeholder Survey (2022)

Stakeholder Engagement

  • To seek views on elements of a potential direct-to-consumer (DTC) system under consideration by the DTC Task Force.
  • To identify the components of the system perceived as beneficial or challenging, and to gauge the overall interest in participating in an interprovincial DTC system

Methodology

Conducted by participating federal, provincial, and territorial (FPT) governments on the Direct-to-Consumer Task Force (DTCTF).

Stakeholders: National stakeholders and producers in each participating Province or Territory in Canada.  Provincial and Territorial stakeholder lists are to be prepared by each participating jurisdiction and shared with the Internal Trade Secretariat (ITS) for distribution. A province or territory may wish to consult other stakeholders (e.g., retailers) on the merits of the system, and may share these results with the broader DTCTF.

Survey in the field:  From June 21, 2022 to July 7 , 2022

Mechanism: On-line survey.

Data analysis: A summary report will be provided by the Co-Chairs of the Task Force.  All data provided by stakeholders will be available to all members of the Task Force for further analysis and to inform FPT efforts and implementation processes.

Background

The Direct-to-Consumer Task Force (DTCTF) is comprised of officials from federal, provincial and territorial governments.[1] It was established in February 2022 at the direction of the FPT Committee on Internal Trade (CIT) in order to move from the exploratory phase toward the implementation of interprovincial direct-to-consumer (DTC) sales[2] in participating jurisdictions in Canada.

Small- and medium-sized producers are seeking opportunities to expand their market access. At the same time, consumers are seeking greater choice and availability of alcoholic beverages.

Although a few provinces currently allow some interprovincial DTC sales of alcohol, a new and distinct sales channel could help unlock growth in the industry and improve product selection for consumers. Any DTC model being analysed by the Task Force seeks to address the following criteria/guiding principles:

  • Allows comparable opportunities for all classes of alcoholic beverages and for all sized producers;
  • Provides the ability for provinces and territories to collect appropriate mark-ups and other charges for products from other provinces and territories, as well as from imported products;
  • Satisfies social responsibility objectives, particularly the prevention of sales to minors and dry communities;
  • Is consistent with internal trade rules and Canada’s international trade obligations;
  • Includes a mechanism for the province or territory in which the producer is located to enforce compliance with the receiving province/territories’ DTC legislation, regulations, bylaws, etc.; and,
  • Is not overly burdensome for producers, liquor authorities, or consumers.

Your input will be provided to all participating FPT governments. Survey results will also be summarized at a Canada-wide level. All publicly released findings will identify the list of respondents but will not include individual responses. Respondent data will be de-identified.

[1] The following provinces and territories are only observers to the DTCTF: British Columbia, Manitoba, Nunavut, Northwest Territories and Québec.

[2] For the purposes of this survey, direct-to-consumer (DTC) sales refers to the sale of products directly from a manufacturer to a consumer, without any intermediary (wholesaler or retailer). DTC in this context does not include sales to licensees (retail, hospitality, special occasion, etc).

Direct to Consumer Considerations

The DTCTF is seeking your views on opportunities and challenges in respect to elements of a future DTC system in Canada. There are three broad areas which require further analysis: DTC licensing; provincial and territorial mark-ups; and e-commerce and DTC sales. Your input will help to serve key information to inform the Task Force of a viable model that may be piloted in participating Canadian provinces and territories within the next year.

Privacy and Disclosure

This survey is being conducted by the Direct to Consumer Task Force (DTCTF). The DTCTF has been created under the CFTA and further to the agreement among federal, provincial and territorial governments to improve consumer choice and greater transparency and access to markets for alcohol producers.

 

The purpose of this survey is to assist the DTCTF with its consideration of options for potential direct-to-consumer (DTC) sales of alcoholic beverages. You are being asked to participate in this survey to determine whether you or your organization has interest in, and capacity to become involved with, the delivery of DTC sales of alcoholic beverages. Your participation in this survey is voluntary.

 

Your responses will be used to inform the work of the DTCTF in the coming months. While your name and the name of your organization will be linked to your responses, this information will only be available to the DTCTF. No identifying information related to your submissions will be included in any public facing document without your prior consent, or as required by law.

 

You may be contacted to request further clarification on your responses, including in respect to opportunities and challenges you identify, if you provide us your contact information.

 

Please note that while aggregate information related to public input may ultimately be compiled or disseminated, the federal, provincial and territorial governments are under no obligation to publish related findings or the recommendations that result from this survey. Further, any work by the DTCTF, including any of its findings, does not necessarily mean that DTC sales of alcoholic beverages will be introduced and/or that your organization will be given an opportunity to participate in such sales.

 

Your responses are confidential. While we will use reasonable efforts to protect any survey results you provide us, in accordance with our Privacy Statement, we cannot guarantee that our safeguarding procedures will prevent the loss of, alteration of, or improper access to, your survey results.

Contact Us

Should you have any questions or concerns regarding this survey, please send an email to secretariat@its-sci.ca.

Survey

Direct-To-Consumer Sales Stakeholder Survey (2022)

Survey

1A. Please check the box that best describes your or your members’ business.(Required)
2. Where do you or your members currently manufacture your products? Please check all that apply.(Required)
3A. Where do you or your members currently sell your products? Please check all that apply.
4A. How do you or your members currently sell your products to consumers? Please check all that apply.
5A. Do you or your members currently ship alcoholic beverages direct-to-consumer?
5B. If you answered Yes in 5A, where do you or your members currently ship alcoholic beverages direct-to-consumer?

Interprovincial DTC Licensing

One of the key considerations in a potential DTC model is how any DTC licensing could be structured and implemented in interprovincial DTC sales. Jurisdictions need to be able to audit, ensure appropriate mark-ups are collected and remitted by sellers, and enforce sales of alcohol into their jurisdictions.
7. Are you aware of whether any of the following is permitted within your province or territory, either through legislation or the conditions of your license(s)?
8A. What concerns or challenges do you or your members anticipate in a scenario where additional licensing is required to participate in an interprovincial DTC system?
9A. Which of these licensing scenarios would you expect could pose the greatest challenge to you or your members?

Provincial / Territorial Mark-Ups and Sales Data

One of the key considerations in a potential DTC model is the collection and remittance of mark-ups and sales data on alcohol products. Provinces and territories may require that mark-ups and sales data be remitted on all DTC sales destined for their consumers.

Interprovincial DTC E-Commerce

One of the key considerations in a potential DTC model is how e-commerce would be managed for interprovincial DTC sales.
12. If you currently sell your products DTC online, please indicate which channels you or your members currently use to take DTC orders:
13. Which e-commerce DTC sales channels are of most interest to you or your members in the context of interprovincial DTC?
14. Are you or your members interested in participating in a formalized interprovincial direct-to-consumer sales model for alcoholic beverages?

Contact Information

20. What is your or your members’ primary province or territory of operation?

Last Updated: June 2, 2022