(Toronto) The Ontario government is moving quickly to put “ready-to-drink” beverages on grocery store shelves, in the midst of a strike at the province’s largest alcohol retailer over the issue.
Finance Minister Peter Bethlenfalvy announced Monday that grocery stores already licensed to sell beer and wine could begin ordering ready-to-drink beverages and large-pack sizes of beer as early as Thursday, which could be available to consumers as early as Thursday — two weeks ahead of the previously scheduled launch of this phase of Ontario’s alcohol sales expansion.
“Our government is delivering on our promise to provide consumers with choice and convenience while supporting Ontario beverage producers, including Ontario companies that produce more than 80 per cent of the ready-to-drink beverages sold right here in our province,” said Minister Bethlenfalvy in a news release.
The move is part of an already accelerated plan to increase the supply of alcohol in Ontario. The Doug Ford government’s initial plan was to allow convenience stores and all grocery stores to sell beer, wine and ready-to-drink beverages by 2026. But last May, the Ford government announced that reform would happen this year instead.
But leaders of the Ontario Public Service Employees Union, whose approximately 10,000 workers at the Liquor Control Board of Ontario (LCBO) walked off the job on July 5, said wages were not the main issue at stake, but rather the increase in sales of these “ready-to-drink beverages.”
In previous stages of Ontario’s alcohol expansion, spirits sales remained in the hands of the LCBO. The union now fears the new measure threatens the Crown corporation and union jobs.
Offering ready-to-drink beverages in grocery stores even earlier than planned is an attempt to undercut LCBO prices and amounts to interference in negotiations, said union president JP Hornick.
“Ford is clearly trying to deliver on the promise he made to potential donors in the convenience and grocery sectors during the election,” Hornick wrote in a statement.
“Doug Ford should stop playing politics with our members’ lives and taxpayers’ money.”
“Not dismantling the LCBO”
Mr. Ford has denied wanting to break up or privatize the LCBO, and government officials have noted that the Crown corporation’s revenues have increased during previous phases of Ontario’s alcohol market expansion.
Minister Bethlenfalvy called on the Crown corporation to showcase and promote Ontario beer, wine, spirits and ciders as it expands, and said it will continue to play an important role as a wholesaler.
Mr Ford last week firmly ruled out abandoning the expansion of ready-to-drink beverages.
The province’s 450 grocery stores that are already licensed to sell beer, wine and cider can begin placing orders for coolers and other ready-to-drink beverages Thursday, and sell them as soon as they receive them.
A spokeswoman for the Retail Council of Canada said Monday that consumers likely won’t see the products in stores right away. “When you factor in shipping and other logistics, it will take some time to see them on store shelves,” Michelle Wasylyshen wrote.
Some stores are seeing higher demand for beer and wine because of the LCBO strike, but there have not been any significant supply issues, she added.
Licensed grocery stores will now be able to sell cases of 12 and 24 beers.
An agreement the former Liberal government signed with The Beer Store in 2015 as part of its expansion of the beer and wine market in grocery stores gave the company the exclusive right to sell cases of 12 and 24 beers.
That contract was set to expire at the end of 2025, but the Ford government’s accelerated plan involves an “early implementation agreement” with The Beer Store that sees the province pay the company up to $225 million to help keep its stores open and its employees. The government is also giving brewers a discount on the LCBO’s normally $45 million-a-year rates, and giving retailers a 10 per cent wholesale discount.
Under Mr. Ford’s plan, convenience stores will be allowed to sell beer, wine and ready-to-drink beverages starting Sept. 5, while newly licensed grocery stores will be able to do so starting Oct. 31.
About 10,000 LCBO workers went on a general strike on July 5. The LCBO on Sunday decided not to open a handful of in-store sales outlets during the strike. The Crown corporation planned to open 32 stores three days a week, with limited hours, if the strike lasted more than two weeks — which it will on Thursday.