Ontario’s Plan to Sell Beer in Corner Stores Sparks Cost Debate
As politicians and newly appointed cabinet ministers leave Queen’s Park for a long summer break, debates continue over the cost of fast-tracking a key policy of the Ford government.
In late May, Ontario Premier Doug Ford held a news conference at a familiar spot: a Toronto gas station with temporary shelves of beer, wine, and mixed drinks displayed behind him.
Ford, along with his finance minister, announced an accelerated timeline for the already public plan to sell beer in grocery stores and corner stores. Originally set for early 2026, the phased expansion will now begin on August 1.
Starting September 5, eligible convenience stores will be able to sell beer, cider, wine, and ready-to-drink cocktails. By October 31, all grocery stores and big box stores will be allowed to sell these products, including large-pack sizes. The government stated that these changes will eventually create up to 8,500 new locations in Ontario where people can purchase alcohol.
Ford and Finance Minister Peter Bethlenfalvy mentioned that up to $225 million had been allocated to assist The Beer Store with the transition and to keep some stores operational.
However, the Ontario Liberals argue that the actual cost exceeds $1 billion.
The party argued that the province would incur costs in four areas due to the new deal: funds for The Beer Store, LCBO rebate fees, a wholesaler discount, and lost license fees.
To reach their estimate, the Liberals included the full $225 million announced by the government, along with an estimated $375 million currently paid by The Beer Store to the LCBO.
The Ford government’s beer liberalization plan allows grocery stores to purchase products from the LCBO with a 10 percent discount. The Liberals contend that this discount would result in a “conservative estimate” of $150 million in costs over two years before the rate is renegotiated in 2026.
The Liberals believe Ontario could have generated upwards of $300 million by auctioning alcohol sale licenses, rather than permitting stores to sell alcohol without an additional fee.
