Ontario vastly expanding where booze can be sold in move to modernize alcohol retail market

Starting in 2026, Ontarians will be able to buy beer, wine, cider and seltzers at convenience stores, big box outlets, some gas stations and more supermarkets, marking a major overhaul in how alcohol is sold in the province.

A suite of changes announced by Premier Doug Ford Thursday are intended to modernize the booze market, the provincial government said, by ushering in "the largest expansion of consumer choice and convenience since the end of prohibition almost 100 years ago."

The Ministry of Finance estimates there will be some 8,500 new locations where consumers can purchase low-alcohol products, giving Ontario the third-highest density of alcohol retail stores among the provinces, behind only Newfoundland and Labrador and Quebec. Ontario will be only the second jurisdiction, after Quebec to offer beer in corner stores and the first to sell ready-to-drink cocktails in those locations.

The LCBO will continue to be the only retailer that sells high-alcohol spirits like gin and whisky.

Speaking at a convenience store in Toronto, Ford said the expanded marketplace will give people more choice, convenience and time.

"We've got to start treating people like adults here in the province," he said.

"Folks, we all have busy lives, so just imagine on a Friday night in December, instead of being stuck in a long lineup at the LCBO, you'll be able to pop into your local convenience store before heading out to the holiday party."

The move would fulfil a promise Ford made during the 2018 election and marks the second attempt the premier has made to put beer and wine in corner stores, previously passing but not enacting legislation to cancel an agreement with the Beer Store.

As part of the overhaul, the province is ending its Master Framework Agreement (MFA) with the multinational conglomerates that own The Beer Store, which currently has a quasi-monopoly on the distribution and sale of beer in Ontario.

The MFA, which the previous Liberal government extended in 2015, will be allowed to expire at the end of 2025, the province said.

At a technical briefing for the media Thursday morning, an official called the agreement a strong impediment to retail expansion because it limits the number of grocery stores that can sell beer to 450, with the Beer Store retaining exclusive rights to sell 12- and 24-packs.

The Beer Store will still be the primary distributor of beer to retailer outlets, bars and restaurants until at least 2031 while the market adjusts to the new regulations, the province said, but smaller Ontario craft brewers will be able to distribute their products through other channels if they wish.

The Beer Store will also continue to run the province's recycling program for alcoholic beverage containers over the same period. No commitments have been made to The Beer Store beyond the five-year term of the new deal, the official said.

The Beer Store said the company looks forward to the next stage in its evolution.

"The agreement acknowledges the important role The Beer Store plays in the responsible sale of beer and ensures it will be able to continue its environmental stewardship for years to come through its recycling program and the Ontario Deposit Return Program," the Beer Store wrote in a statement.

Private retailers can set prices

There will be no caps on the pack sizes of beer, cider and ready-to-drink seltzers sold in the new retail outlets, the government said. Grocery stores in Ontario that currently offer beer are limited to singles and six packs.

While LCBO locations will maintain consistent pricing, private retailers will be able to set their own prices "consistent with relevant regulations," according to the province. Right now, all retail outlets have to adhere to pricing set by the LCBO.

There will still be a minimum price for alcoholic products to "preserve standards for responsible consumption," a news release accompanying the announcement said.

The changes also include measures the province said are meant to support sales and growth for local Ontario producers. Existing shelf space requirements for grocery stores that sell alcohol — 20 per cent for craft beer and 40 per cent for Ontario wines and ciders — will be extended to all new retail locations.

Legislation to be tabled in the coming months would also eliminate a 6.1 per cent tax at on-site winery retail shops, a move the industry has pushed for.

Meanwhile, the government will work on providing an as-yet unspecified amount of increased funding for social responsibility initiatives, the official said.

Ontario's auditor general said in a report this month that government officials have not consulted Public Health Ontario on the implications of the expansion of alcohol sales in recent years.

The Ontario Public Health Association raised concerns earlier this year about a possible expansion of alcohol sales, saying it would have negative health implications.

"Research and real-world evidence show that when alcohol becomes cheaper and more available, consumption increases, and so does alcohol-related harm," the group wrote in a news release.