Ontario grocery stores to sell six-packs

Header image for Interrobang article CREDIT: JERROLD RUNDLE
Beer Stores in Ontario will be sharing the sale of six-packs with a limited amount of grocery stores.

Allowing 450 Ontario grocery stores to sell beer is equal to the number of The Beer Store locations in the province, and is in addition to over 600 LCBO stores.

With Ontario entering into the Beer Framework Agreement with The Beer Store, craft brewers will have more access to the market, and have their own category for easier profiling. They will be given 20 per cent of shelf space in the Beer Store up from the current seven. Large brewers in the industry have agreed to cap price increases to inflation on popular products until May of 2017.

The Ontario Deposit Return Program will be extended beyond 2017, and is expected to generate an extra $100 million a year for provincial revenue phased in over four years.

But, this change also comes with some restrictions.

Grocery stores being given a liquor license will only be allowed to sell beer in a designated section within the same operating hours as The Beer Store, and there is an annual cap of $1 million worth of beer sales per year.

There will only be a test group of 150 stores selling beer this month. A new tax is also being introduced on Ontario’s beer. Starting in November, beer will cost an extra three cents per litre until 2018, which adds up to an extra 25 cents on a case of 24. In contrast to these policies, Vancouver is working on less restrictive regulations on the sale of medical marijuana than Ontario has for liquor sales.

“Ontario consumers have asked for more convenience, wider distribution and greater competition in the purchase of beer and alcohol beverages,” said Finance Minister Charles Sousa in a press release. “We have listened and are modernizing the system to enhance delivery and selection at competitive prices while ensuring our commitment to social responsibility.”

The LCBO will also be adding online purchasing with home and in store delivery, as well as niche boutiques for craft beer, wine and spirits such as whiskey. It will also be selling refillable growlers, which can hold between 750 millilitres and a litre. Twelve-packs will also be added, but only to 10 stores in the province for an initial testing period.

There seems to be a difference of opinion between consumers and politicians on the best way to implement privatized alcohol sales in Ontario. Hopefully there will an opportunity for craft brewers and fellow citizens to give more input on the issue in the near future.

After several attempts, Interrobang was unable to attain comments from London MPP, Deb Matthews or a representative from The Beer Store.