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Ontario Accelerates Alcohol Sales Expansion As LCBO Strike Continues

The Ontario government has announced that licensed grocery stores will be able to order ready-to-drink beverages and large beer pack sizes starting Thursday, July 18, 2024, and begin selling them immediately upon arrival. This new timeline accelerates the first phase of the government’s plan to expand alcohol sales to grocery, convenience and big-box stores by allowing the 450 grocery stores that are currently licensed to sell beer, cider or wine to sell them once they arrive in store, rather than August 1.

“Our government is keeping our promise to give people in Ontario choice and convenience while supporting Ontario-made beverage producers across the province, including the Ontario businesses that produce more than 80 per cent of the ready-to-drink beverages sold here in our province,” said Peter Bethlenfalvy, Minister of Finance. “This is an important milestone for grocery retailers and consumers alike as we continue our work modernizing Ontario’s alcohol marketplace.”

By the end of October 2024, as part of the government’s plan to expand alcohol sales that was originally announced in May, every convenience, grocery and big-box store in Ontario will be able to sell beer, cider, wine and ready-to-drink alcoholic beverages. Over time, this new, more open marketplace will introduce up to an estimated 8,500 new stores where these products can be sold, the largest expansion of consumer choice and convenience since the end of prohibition almost 100 years ago. As the province implements its plan, the government will continue to constantly evaluate how it can deliver choice and convenience.

In addition to beginning the sale of ready-to-drink beverages and large pack-sizes of beer in the existing licensed grocery stores later this month, the government is also creating temporary flexibility to allow licensed grocery stores to display alcohol in multiple areas of a store, with some limits. To help bars and restaurants manage inventory and to help ensure consistent supply of products, the government is also temporarily allowing the transfer of wine and spirits between locations with the same owner and/or affiliated licensees.

As the labour dispute with the LCBO continues, the province has also launched a new searchable and interactive map of retailers that remain open and ready to serve. These retailers include more than 1,000 local Ontario breweries, wineries, wine shops and distilleries, in addition to other retailers such as LCBO Convenience Outlets, The Beer Store and licenced grocery stores that sell a range of Ontario-made and imported products. As new retailers are licenced to sell alcoholic beverages, they will be added to the map.

Meanwhile, plans by the LCBO to reopen 32 stores on a limited basis amid an ongoing strike by unionized workers have been scrapped. In a statement posted on an LCBO negotiations update website on July 15th, agency staff said they ramped up online ordering efforts after the strike began on July 5 and orders have been fulfilled within a week.

“We will be re-allocating the personnel that were planned to open LCBO retail stores for in-store shopping to other parts of the operations to further enhance support for bars, restaurants and other businesses. This means LCBO retail stores will no longer be open for the duration of the strike,” LCBO staff wrote. “We want this strike to end, remain committed to reaching an agreement with OPSEU, and encourage them to respond to our fair offer.”

The original plan was to reopen 32 stores across Ontario starting on July 19th, two weeks after the strike began, for three days a week with limited hours.

One of the main issues at the heart of the strike is Premier Doug Ford’s plan to allow ready-to-drink cocktails to be sold outside LCBO stores. OPSEU officials said the union does not want those types of drinks – among the fastest growing market – sold outside LCBO stores as they believe it will eventually lead to job losses due to lost revenue.

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