BusinessDrinksFEATUREDGeneralLatestNews

Why Premixed Cocktails Are Stirring Up Controversy Amid LCBO Strike

Ready-to-drink beverages generated over $600 million in LCBO revenues in 2023, highlighting the concerns of front-line employees who fear that publicly owned retail locations could close if convenience stores are allowed to encroach on liquor store revenues.

The Ford government has announced plans to permit convenience stores to sell premixed cocktails, along with beer, wine, and cider, starting in early September as part of the Progressive Conservatives’ initiative to expand alcohol access in the province.

The union has urged the government to either reverse the policy or address the revenue loss, while Premier Doug Ford emphatically declared that the “ship has sailed” on the decision, emphasizing that convenience takes precedence.

How much do RTDs bring in? In its 2022-23 report, the LCBO highlighted a growing taste for premixed drinks that translated into increased revenues.

While Ford emphasized that RTDs represent 9.1 percent of overall LCBO sales, the Crown agency reported a sharp rise in sales and revenue.

In 2023, the LCBO reported that RTD sales grew by 6.8 percent to $673 million, and these beverages now account for “almost 62 percent of total Ontario spirits volume” sales in the province.

Union says key questions remain unanswered On Wednesday, the Ontario Public Service Employees Union (OPSEU) stated that it has been seeking information from the LCBO and the Ontario government on the overall financial impact of selling premixed drinks at convenience stores.

The union has also sought clarity through the bargaining process about the projected revenue loss for the Crown agency as a result of alcohol liberalization.

While the province’s finance minister has never disclosed this figure, OPSEU President MacLeod said the LCBO has also refused to provide it.