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B.C. budget: DHL could cash in on decision to privatize liquor distribution

The B.C. government's decision to privatize liquor warehousing and distribution, disclosed in the provincial budget announced February 21, could be good news for a Ohio firm owned by global logistics giant Deutsche Post DHL . According to the B.C.
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B.C. budget 2012, Christy Clark, Gordon Campbell, Mark Jiles, Pat Bell, Patrick Kinsella, retail, Rich Coleman, Shirley Bond, B.C. budget: DHL could cash in on decision to privatize liquor distribution

The B.C. government's decision to privatize liquor warehousing and distribution, disclosed in the provincial budget announced February 21, could be good news for a Ohio firm owned by global logistics giant Deutsche Post DHL.

According to the B.C. Lobbyist Registry, Progressive Strategies (the Progressive Group) registered from April 1, 2010 to April 9, 2013 to lobby the B.C. government on behalf of Exel Logistics "to develop a new liquor distribution system for the province of B.C."

Progressive's registration describes Exel as "the leading contract logistics provider in the Americas thanks to the hard work of 40,000 associates at more than 500 sites throughout the U.S., Canada and Latin America."

Lobbyists Rob Madore and Mark Jiles are named on the entry.

Their target contacts include Jobs, Tourism and Innovation Minister Pat Bell, Justice Minister Shirley Bond and Energy and Mines Minister Rich Coleman, who regained the liquor and gambling portfolio earlier this month.

Scott Lyons, Exel's vice-president of business development in Toronto, could not be reached immediately for comment on Tuesday.

Lyons is the former director of distribution centre operations for The Beer Store retail chain in Ontario owned by Labatt, MolsonCoors and Sleeman.

Progressive's chairman is Patrick Kinsella, the political strategist behind Premier Christy Clark's successful, 2011 Liberal leadership campaign.

Kinsella was involved in two of the biggest privatizations of former Premier Gordon Campbell's administration.

Progressive client Accenture made a 10-year, $1.45 billion outsourcing deal with BC Hydro in 2003.

B.C. Supreme Court evidence indicates Kinsella was working for both CN Rail and BC Rail before and during negotiations for the 2003 BC Rail privatization.

According to its Tuesday-released service plan, the Liquor Distribution Branch is forecasting $2.9 billion in sales in 2012-13 and $906.1 million in net income.

LDB has warehouses in East Vancouver and Kamloops, and supplies 1,400 retailers (only 197 of which are government-owned) and 8,000 bars and restaurants.

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@bobmackin