By Rick VanSickle
The Ontario government announced today that consumers will be able to buy wine, beer, cider and RTD drinks at convenience, grocery and big box stores beginning no later than Jan. 1, 2026.
The sweeping announcement also contains a range of good news for Ontario wineries, including:
• Extending dedicated shelf space requirements across all new retailers for craft producers to provide opportunities for small producers to compete
• Immediately enhancing the Vintners Quality Alliance (VQA) Wine Support Program beginning in 2024-25 for up to five years to 2028-29 to support the growth and sale of Ontario-grown VQA wines
• Extending the Wine Marketing Fund and the Small Cidery and Small Distillery Support Program for up to five years. The Grape Growers of Ontario said “the decision to extend the five-year VQA support program is a game-changer. It not only provides stability for both farmers and wineries, but it will also fuel growth. With more shelf space and increased points of sale, Ontario wineries can confidently showcase their exceptional 100 percent Ontario VQA wines. This shift aligns perfectly with our commitment to authenticity and quality.”
• Supporting local economic development by directing the LCBO to promote and prioritize Ontario-made products, producers and workers by providing more and enhanced programs, promotions and strategies to help local producers grow Ontario product sales
• Establishing a wine and grape industry sector table between government and industry partners
• Introducing legislation that will, if passed, eliminate the 6.1 per cent wine basic tax at on-site winery retail stores, making Ontario’s tax regime competitive with other provinces, including British Columbia. The Grape Growers of Ontario said: “This bold move will invigorate our wineries. By removing the retail tax burden, Ontario wineries can reinvest in their businesses and drive innovation. We anticipate increased capital flow, expanded facilities, and exciting new ventures. It’s a win-win for both the industry and wine enthusiasts.”
“Today is one of the best days the Ontario wine industry has had in decades. The measures announced by the Government of Ontario are the first step in allowing Ontario wineries and grape growers to grow and thrive,” said Aaron Dobbin, president and CEO of the Wine Growers Ontario.
“For decades, Ontario wineries have faced disadvantages that other wine producing regions do not face in their home markets. Today’s announcement by the Ontario government recognizes what we have long said: wine regions are catalysts for economic growth. Every dollar spent on wine grown in Ontario is a dollar going back into the economic growth of Ontario, through agricultural jobs, small business growth and agri-tourism. The government’s plan will put us back on track for not only sustaining but growing our agricultural businesses for generations to come,” said Richard Linley, president, of the Ontario Craft Wineries.
“The Grape Growers of Ontario extends our heartfelt appreciation to the Government of Ontario for its visionary approach to help Ontario’s grape and wine industry thrive and grow into its true potential. The decision to extend the VQA support program for five years is a game-changer. It not only provides stability for both farmers and wineries, but it will also fuel growth. The elimination of the 6.1% Winery Retail Tax will invigorate Ontario wineries and make it possible for them reinvest in their businesses and drive innovation. Together, we toast to a thriving grape and wine landscape in Ontario,” said Debbie Zimmerman, CEO of the Grape Growers of Ontario.
This new, more open marketplace will introduce up to 8,500 new stores where these products can be purchased, the largest expansion of consumer choice and convenience since the end of prohibition almost 100 years ago. Spirits like vodka, gin and whisky will continue to be sold at the LCBO, government news release said.
“We made a promise to the people of Ontario to deliver more choice and convenience,” said Premier Doug Ford. “Today, we’re delivering on that promise. 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.”
As a first step in the transition to a new retail marketplace, the government has informed Brewers Retail Inc. (The Beer Store) that the Master Framework Agreement (MFA), signed and extended for ten years by the previous government in 2015 and limited the number of retail stores that could be authorized to sell alcohol, will not be renewed after it expires on December 31, 2025. The Beer Store and LCBO will continue their retail operations in Ontario’s new marketplace.
“The people of Ontario will soon have more choice and convenience on where they can buy alcohol,” said Peter Bethlenfalvy, Minister of Finance. “As we move towards implementing this expansion, our government will be taking a responsible, measured approach so we can ensure our transition to a new marketplace is smooth, safe and stable.”
The government’s balanced approach also includes the following initiatives:
• Competitive pricing: Ontario will introduce competitive pricing to all private retailers to promote competition and a better deal for consumers. LCBO retail stores will maintain consistent pricing across the province to help ensure consumers do not pay more based on where they live, including in rural and northern Ontario. As they do in other provinces, retailers will have the option to set promotional prices consistent with relevant regulations. Minimum pricing policies will remain in effect to preserve standards for responsible consumption.
• Pack sizes: Ontario is removing restrictions and exclusivities on pack sizes. Consumers will be able to purchase any pack size, including 12-packs, 24-packs or even 30-packs as is popular in Quebec of beer, cider and ready-to-drink alcohol beverages at convenience, grocery and big box stores, in addition to the LCBO and The Beer Store.
• Recycling program: The Beer Store has agreed to continue to run the provincewide recycling program for alcoholic beverage containers until at least 2031 as part of a transition period in the new marketplace. This program, which is well liked and convenient for consumers with hundreds of locations across the province, helps keep costs down for producers and consumers while helping to protect the environment by diverting significant amounts of waste from landfills. The government will consult with retailers and industry stakeholders on the future of recycling and deposit return to ensure this important feature is maintained beyond 2031. Ontario will provide a range of transitional and time-limited supports to Ontario-based producers to help with the transition to a more open marketplace, including:
• Social responsibility: The government is providing an additional $10 million over five years in funding to the Ministry of Health to support social responsibility and public health efforts to ensure alcohol continues to be sold and consumed safely in the expanded marketplace. Existing requirements related to staff training, minimum pricing, hours of sale and warning signs will be maintained and applied to all new retail outlets.
• Wholesale: The LCBO will be the exclusive wholesaler for all retail, bars and restaurants selling alcohol and will offer consumers an extensive array of choices, including domestic and imported products. This structure will continue to offer the benefits of the LCBO’s world-leading purchasing power and economies of scale and ensures sector stability, including maintaining an important employment footprint across Ontario and a significant revenue stream for government so that it can continue to invest in critical frontline services like health care and education. The province is proud of its LCBO workforce and will continue to support them through this transition.
• Distribution: The LCBO will continue to work with producers and retailers to distribute wine and spirits in an expanded marketplace, including retail stores, bars and restaurants. The Beer Store has agreed to maintain its primary role in the distribution of beer to retailers, bars and restaurants until at least 2031 as part of the transition period, helping to provide stability to the sector and frontline workers. The province will also permit more flexible distribution models for small producers.
In the months ahead, the government will continue to meet and consult with industry partners, local beverage alcohol producers and other stakeholders on additional areas of the future marketplace including licensing, wholesale pricing and taxes, mark-ups and fees. The province will also conduct a broader review of taxes and fees on beer, wine and alcoholic beverages with the aim of promoting a more competitive marketplace for Ontario-based producers and consumers.
“Extending dedicated shelf space requirements across all new retailers for craft producers to provide opportunities for small producers to compete”
Can you imagine wine enthusiasts seeking out small production wines from the likes of Bachelder or Cloudsley at their local 711 or Walmart? I can’t either.
In fact, if convenience stores and big box stores are required to have a certain amount of shelf space dedicated to “craft” producers, they might just say “forget it”, it is not worth the trouble of having a section of their store to sell wine.
What about encouraging dedicated boutique wine shops that would actually seek out these smaller production wines to stock their shelves? I dont’ see anything about this in the news release, or did I miss it in the small print?
And who actually likes the current recycling program? Why do I have to make a special trip to the beer store (which I rarely go to) to recycle bottles when I can I can just put them in my blue box every week? The beer store just sends them to the same recycling facilities as does my local recycling pick up.