Ontario company says LCBO private warehouse deal is forcing it out of business

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Ontario Alcohol,Ontario Politics,Politics

An Ontario courier is accusing the LCBO and an international shipping company of conspiring to run it out the province's alcohol delivery business. Both deny the claim.

and an international logistics company to operate a warehouse near Toronto is squeezing them out of the alcohol business, alleging they’re the victims of a “conspiracy” against them.

A March 2024 motion from an Ontario judge struck down some of Phyxiat’s initial claims that the government owed, and had failed to fulfil, a duty of care.Phyxiat claims that before the LCBO moved its warehouse Caledon, Ont., from downtown Toronto, it had no problem with the LCBO or the deliveries it carried out on its behalf.

“Phyxiat’s agents frequently arrive at the Facility at their appointed pickup time, to find that Trillium has not pre-picked and prepared orders/consignments,” part of the claim said, adding that drivers had allegedly waited “a full day” in some cases.Does Poilievre’s refusal to get security clearance stand up to scrutiny?

“Phyxiat frequently experienced delays in loading its shipments from Trillium’s loading dock because it lacked a trailer large enough to handle all of its freight in a single shipment.”The warehouse operator said it amended its process to accommodate Phyxiat and claimed there was “an improvement” in order pickup.Phyxiat claims the issues it experienced were not incompetence, but part of a move to squeeze it out of the market — something both the LCBO and Trillium deny.

That is a claim explicitly denied by the LCBO in its statement of defence, which says the LCBO has not “been soliciting any of Phyxiat’s customers or acted without good faith.”Later in the defence, the Crown corporation denied “that it has made any financial gains or profits related to Phyxiat.” In its legal response, the LCBO said it had “considered the complaints” made by Phyxiat after the new warehouse opened and was “satisfied those complaints were unfounded” against Trillium.

In particular, the lawyer representing Phyxiat claimed that a recent change to how the convenience and grocery store program operates has taken away more customers for the company.

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