by Tony Aspler
Sylvain Toutant, CEO of SAQ, the state-run corporation for the trade of alcohol, has resigned after three years in the post. Toutant, who came under fire during the liquor board’s price fixing scandal in 2006,
has left Québec’s liquor monopoly to run Maison des Futailles, the company that bottles wines and spirits for the SAQ.
Toutant has accepted the position as Vice President of the consumer products division of Kruger, the international paper giant. Kruger took over the bottling operation in 1999. Maison des Futailles holds 35% of the Quebec grocery store market in Québec and 70% of the bulk wine market. The 250 products of Maison des Futailles, whether imported or made in Québec, are distributed through various networks, including SAQ outlets, restaurants, grocery stores, licensed establishments, food stores and bulk wine and spirits outlets. MDF enjoys a significant share of the SAQ stores’ business volume where its top quality wines are sold. In total, MDF accounts for 17% of all wines sold in Québec.
Toutant’s success in increasing the monopolies sales from $2.7b to $3b (€1.85b-€2b) between 2004 and 2007 was clouded last year by a pricing scandal in January and February 2006. The significant rise in the Canadian dollar against the euro should have meant lower prices for the Quebec consumer. But in order to maintain its profits, the SAQ asked suppliers to raise their wholesale prices beyond the 5% ceiling the SAQ itself had set. A report from the auditor-general noted that the failure to adjust wine prices to the lower valuation of the euro cost taxpayers about $8m. Two SAQ vice presidents took responsibility for the scheme and were subsequently let go.
The interim CEO of the SAQ is Philippe Duval.
