The Ontario government announced massive changes on Thursday in the way alcohol is going to be sold in the province.
The new plan would allow convenience stores to sell beer and wine, and give grocery stores the option to sell cases of beer.
This could spark other changes throughout the industry, particularly for wine producers.
Premier Doug Ford says these are the biggest changes to alcohol sales in Ontario since the 1920s when the province ended prohibition in Ontario.
“These new rules finally put Ontario in line with Quebec and other provinces and pretty much everywhere else in the world,” Ford said at a press conference on Thursday.
The plan is that in two years, by Jan. 1, 2026, people will be able to buy beer, wine, coolers and cases of them in convenience stores and grocery stores.
The government expects as many as 8,500 stores to sign up, saying alcohol pricing will be competitive.
There will be minimum prices set by the government, but retailers can decide how much more to charge above that.
To bring in these changes, the government is not renewing its contract with the Beer Store which will lose its exclusive authority to sell cases like 12, 24 and 30 bottles, which will be available in convenience and grocery stores.
The Beer store will remain a distributor and will run its recycling program until 2031.
At the same time, LCBO will be the only store selling high-alcohol spirits like vodka, gin and whiskey, along with beer, wine and other drinks.
The government is also taking measures to boost Ontario's alcohol beverage industry.
Retailers will have to devote space to Ontario beverages like wine and craft beer, the LCBO will have to promote and prioritize Ontario-made products and the government will eliminate a 6.1 per cent tax on Ontario wine sold at wineries.
It's not clear how much that 6.1 per cent tax cut is going to mean for the price of a bottle of wine.
The province’s finance minister says producers can choose whether to pass it on to consumers.
Along with new supports from the government, wine producers call this a monumental day, and Niagara MPP Wayne Gates says the changes could mean billions of dollars in growth.
“I knew going into the summer there was a few of those wineries that might not survive if the government didnt change their mind on the 6.1 wine tax, the unfair tax,” Gates said.
“I believe they can now reinvest in the wine business into their small, medium size wineries.”
"I can tell you I've never seen that sector smile as much as they're smiling right now,” Ford said.
But the premier sidestepped questions about health issues around more alcohol sales.
“We've gotta treat the people of Ontario like adults. and that's what we're doing. They have a responsibility to drink responsibly, don't drive, take an Uber, take a taxi. And that's what we're doing,” Ford said.
And the government acknowledges that these changes could lead to job losses at the LCBO and Beer Store.
