Alberta Gaming, Liquor and Cannabis Commission

The complete privatization of Alberta liquor retailing following former Calgary mayor Ralph Klein's accession of the premiership in 1992 is the most notable event in the ALCB's history, and for many Canadians it is also the most controversial event in the recent history of alcoholic beverage distribution in Canada. Klein promised Albertan voters the liquor industry would be privatized if he was elected in the 1993 election. After he won the election, the Klein government carried out the privatization almost immediately.

Under Municipal Affairs Minister Steve West, privatization was carried out, and the 202 ALCB liquor stores were systematically sold off. Where private interests believed an existing ALCB store could be profitably operated as a privately owned liquor store, the store continued to operate under new ownership. Liquor stores that were not economically viable in the private sector were closed down with the properties sold to the highest bidder. Between September 4, 1993, and March 5, 1994, every ALCB store was either sold or shut down. With respect to the ALCB stores that were converted to private liquor stores, the Alberta Union of Provincial Employees (AUPE) was denied successor rights to the private stores. Whereas all non-management ALCB employees in 1993 belonged to the AUPE, as of 2006 no privately owned liquor store was known to have become unionized except for those owned and operated by Loblaws under the Real Canadian Liquorstore and those owned and operated by Safeway in their grocery stores.

The ALCB initially retained warehousing and distribution responsibilities for wine, coolers, imported beer and spirits. The warehousing operation was contracted out to a private operator, Connect Logistics in June 1994. Connect Logistics leased the ALCB's existing warehouse in St. Albert and continues to warehouse all wine, coolers, imported beer and spirits legally sold in Alberta. Domestic beer is warehoused and distributed by Brewer's Distributor Limited. The AUPE was again denied successor rights to the Connect Logistics–operated warehouse and the warehouse thus became a non-union operation.

Privatization was controversial, attracting criticism from people who worried about the social costs of liquor privatization.

ALCB workers had taken strike action earlier in 1993 causing an interruption in service at liquor stores. Compared to other Canadian provinces, Albertans are generally seen as less friendly to unions, and many Albertans were disappointed by what they interpreted as the union's lack of concern for Albertans' social lives (the strike over the Victoria Day weekend). Some Alberta labour leaders continue to view the privatization as a retaliation against a legal strike. It is still debated whether this strike directly influenced the Tories' election promise and subsequent decision to privatize liquor store, or influenced some Albertans to vote for Klein as a result.

Distribution delays by Connect Logistics became a problem in 2006 with complaints from liquor retailers that they were not receiving stock on time and had empty shelves as a result. Some retailers also initiated legal action against AGLC.

In response, AGLC hired a 3rd-party consultant, Price Waterhouse Coopers, to review the province's liquor distribution system.[10] The report was publicly released in March 2007.[10]

The report did not make any drastic recommendations on how liquor products are distributed in Alberta. It recommended that Connect Logistics remain in its role and continue to warehouse and distribute wine, spirits, and imported beer to maintain "stability" in the system.[10]^: 4 The biggest difference in this arrangement would now require a formalized contract between Connect Logistics and AGLC including "performance indicators" for things like consumer service and on-time delivery.[10]^: 4

One of the more controversial recommendations was for a new warehouse pricing system. In July 2007, AGLC approved the new prices for storage, warehousing and distribution. Connect Logistics claims the new prices better reflected the actual handling costs of each product. Some managers of smaller liquor stores believed that the system worked to the advantage of larger operators.

Over the 2007 Christmas season, the stories of empty liquor store shelves and product shortages disappeared from the media as shelves remained stocked.

A follow-up report was released in June 2009.[11]

Although Alberta has deregulated its retail liquor industry to a greater extent compared to any other province, its Connect Logistics–administered monopoly on the wholesaling of wine and distilled spirits is comparable to the systems which in the U.S. would be considered an alcoholic beverage control state. This means that by U.S. standards, Alberta would be defined as a "control" jurisdiction.

When the U.S. abolished prohibition in 1933 the bordering U.S. state of Montana modelled its own liquor control board on the one in place in Alberta.[12] Montana has made similar changes to Alberta over the years and its present liquor distribution system is still very similar to the present Albertan system. It is considered to be one of the 18 "control" states in the U.S.

In 2007–2008 disorderly conduct at and near licensed establishments was identified as a growing problem, particularly in the major cities. The province's economic boom and the resulting affluence of its youth were identified as the root cause of the increase in binge drinking. Some blamed inadequate restrictions on alcohol sales in establishments (compared to other provinces) as contributing to the problem. In July 2008, the Alberta government responded to complaints by police and other groups[13] by introducing new regulations to restrict the sale of alcohol in restaurants and bars. Among other things, as of August 1, 2008:

• Happy hours are still allowed, but they can no longer run past 8 p.m.[13] Drinks sold after this time must be sold for the establishment's regular menu price, thus all-night drink specials which entail selling certain categories of drink for a discount are no longer legal.[13]
• Minimum prices are in effect. Alcoholic beverages may not be sold for below these minimums.[13] They vary by beverage:
  • $2.75 each for spirits and liqueurs.[13]
  • $0.35 per ounce for wine (i.e. $1.75 for a 5-imperial-fluid-ounce (140 mL) glass).[13]
  • $0.16 per ounce for draught beer (i.e. $3.20 for a 20-imperial-fluid-ounce (570 mL) pint).[13]
  • $2.75 per 12-imperial-fluid-ounce (340 mL) bottle or can of beer, cider or coolers.[13]
• The number and size of drinks that can be sold to a patron after 1 a.m. is limited to two standard servings per order – one standard serving being defined as 1 imperial fluid ounce (28 mL) of distilled spirit or one bottle or can of beer.[13]
• Possession of more than two drinks after 1 a.m. in a licensed establishment is prohibited.[13]

AGLC is responsible for enforcing these new rules.

In response to the above industry concerns, AGLC instituted a certification course called ProServe.[14] Proserve covers symptoms of intoxication, liquor law, identifying minors, dealing with intoxicated people, and other issues that a licensed establishment may face. As of January 1, 2010, all people selling and serving liquor must be certified.

On November 26, 2010, AGLC temporarily halted registration of beers with an alcohol content higher than 11.9% (while allowing current retail stocks to still be sold).[15] The restriction was lifted three weeks later on December 16, once a new policy had been developed to deal with a potential influx of ultra-high alcohol beers.[16] The new policy equalized markup rates so that high-alcohol beers were treated the same as other liquor products with similar alcohol levels.[17]

On February 6, 2018, Premier Rachel Notley ordered AGLC to cease importing wine from British Columbia, as an economic sanction against the province's decision to perform further environmental reviews over a proposed expansion of the Trans Mountain Pipeline.[18]