Ontario Fast-Tracks Alcohol Sales in Grocery and Convenience Stores

Ontario will accelerate the expansion of alcohol sales to grocery and convenience stores, starting this summer, thanks to a new agreement that sees the Ontario government providing The Beer Store up to $225 million for an early rollout.

“We are delivering on our commitment to give consumers in Ontario the choice and convenience every other Canadian enjoys and we’re doing so even sooner than we had originally promised,” Premier Doug Ford announced on Friday.

Starting August 1, licensed grocery stores will begin selling ready-to-drink beverages and larger beer pack sizes. Then, from September 5, convenience stores will start selling beer, cider, wine, and ready-to-drink beverages. By October 31, all eligible grocery and big box stores will have the option to sell these alcoholic beverages, including large-pack sizes.

“In the coming weeks and months, people in Ontario, like many Canadians across the country, will have the option to responsibly and conveniently purchase a case of beer or a bottle of wine on their way up to the cottage or to a summer barbecue, all while having even more opportunity to support local Ontario breweries and wineries,” Ford stated.

This move comes ahead of the original timeline set in a 2015 master framework agreement, which restricted the expansion of beer and wine sales and was due to expire in 2025. The new deal includes a reimbursement to The Beer Store, with an initial payment of $22.5 million to cover early implementation costs and additional expenses like purchasing delivery trucks.

Despite the expansion, The Beer Store will remain the main distributor of beer to retailers, bars, and restaurants until at least 2031. The LCBO will become the exclusive wholesaler for all grocery and convenience stores.

The Ontario government emphasizes that this deal will not only protect jobs and keep The Beer Store locations open for recycling and bottle return but also boost the local economy by supporting Ontario breweries and wineries.

However, health advocacy groups, such as the Ontario Public Health Association, have voiced concerns about the potential health impacts of increased alcohol availability. Last year, the group warned of the “inevitable consequences of illnesses, deaths and social harms” linked to higher alcohol sales and consumption.

Ontario’s Finance Minister Peter Bethlenfalvy reassured the public, saying the province’s approach is “responsible and balanced” and that it “treats Ontario consumers like adults by giving them more choice and convenience.”

Retailers will be permitted to sell alcohol below wholesale costs, subject to provincially-set minimum prices. The Alcohol and Gaming Commission of Ontario (AGCO) will continue to regulate and license alcohol sales, with the power to enforce market regulations.

The provincial government also announced an additional $10 million funding over five years to support social responsibility and public health initiatives related to alcohol sales and consumption.

Touted as the “largest expansion of consumer choice and convenience since the end of prohibition almost 100 years ago,” the changes will ultimately lead to up to 8,500 new alcohol retail locations in Ontario, promising competitive retail pricing across new sales points and The Beer Store.

AK