Ontario will allow beer to be sold in all stores
The end of a longstanding monopoly.
Premier Ontario Doug Ford has finally announced the fulfillment of a promise made during the 2018 election campaign. No later than January 1, 2026, consumers will be able to buy beer, wine, cider and other low-alcoholic beverages at any convenience store, grocery store and large retail outlets across the province.
Up to 8,500 new stores are expected to launch in this much more open market. However, spirits will continue to be sold in LCBO specialty stores.
"There’s no reason why Ontario consumers shouldn’t enjoy the same convenient shopping experience as Canadians in every other province when buying some wine for their holiday party or a case of beer or seltzers on their way to the cottage," Ford said.
Prior to that, the right to sell low-alcoholic beverages was exclusive to Brewers Retail Inc. (The Beer Store). A Master Framework Agreement (MFA) was in place between the province and the company, extended for ten years by the previous government in 2015. The agreement limited the number of retail stores that could be allowed to sell alcohol. It expires on December 31, 2025, and the agreement will no longer be renewed at this time.
What will happen to the monopolist?
The Beer Store will still sell beer in the new competitive market and will remain a major distributor for retailers, bars and restaurants until at least 2031. Under the agreement, they will be able to set their own distribution costs as well as minimum delivery volumes for orders.
It will also retain its recycling and escrow program, and the LCBO will retain exclusive wholesale liquor rights.Officials say the government will continue to consult with the owners on the future of these programs after the new agreement expires in five years.
Big packs of beer
The new rules for the sale of low-alcoholic beverages also end The Beer Store's monopoly on the sale of large packs of beer. All retailers will now be able to distribute packages of 12, 24 and 30 cans/bottles.
Support for local manufacturers
The province has announced a number of "transitional and time-limited" support measures for local liquor producers. These include increased shelf space for all new craft retailers and legislation to eliminate the basic wine tax. The winery support program would also be extended, and LCBOs would be required to promote the products of local producers.
The government promises to keep working on this, consult with industry leaders and review the entire taxation system in the near future.
