Ontario accelerates RTD expansion plan
The Ontario government has brought forward its plan to allow convenience stores to sell spirit-based ready-to-drink (RTD) beverages.
The government had previously announced that grocery, convenience and big-box stores could sell spirit-based RTDs from 1 August 2024. Spirits and spirit-based RTDs can only be sold in the government-controlled Liquor Control Board of Ontario (LCBO) outlets and agency stores.
However, in a new statement published on 15 July, the government has now accelerated its plan to expand alcohol sales in the province by allowing 450 grocery stores that are currently licensed to sell beer, cider or wine to sell RTDs once they arrive in store. The move is effective from 18 July 2024.
“Our government is keeping our promise to give people in Ontario choice and convenience while supporting Ontario-made beverage producers across the province, including the Ontario businesses that produce more than 80% of the ready-to-drink beverages sold here in our province,” said Peter Bethlenfalvy, minister of finance.
“This is an important milestone for grocery retailers and consumers alike as we continue our work modernising Ontario’s alcohol marketplace.”
By the end of October 2024, every convenience, grocery and big-box store in Ontario will be able to sell beer, cider, wine and RTD beverages. The move was first announced in May 2024.
Gradually, this would mean the introduction of up to 8,500 new stores where these products can be sold, the government said.
LCBO reverses decision to open stores
The decision to bring forward RTD sales in retail comes just a day after the LCBO backtracked on its decision to open select stores three days a week amid strike action.
Workers at the LCBO began strike action on 5 July after talks with the Ontario Public Service Employees Union (OPSEU) broke down. The LCBO confirmed that its retail locations would close for 14 days, while online ordering remains available. Approximately 10,000 OPSEU employees have been on strike.
The LCBO previously said it planned to open 32 stores three days a week with limited hours if the strike went on for longer than two weeks.
The LCBO said in a statement on 14 July that it had been able to fulfil online orders within a week.
“Because of this success and because of our confidence in our ability to continue serving retail customers online, we will be re-allocating the personnel that was planned to open LCBO retail stores for in-store shopping to other parts of the operations to further enhance support for bars, restaurants and other businesses,” the LCBO said. “That means LCBO retail stores will no longer be opening for the duration of the strike.
“This pivot means that we will be able to improve how we serve Ontario bars and restaurants to help increase product selection, availability, and expedited delivery.”
‘Protect public revenues’
The OPSEU has been a vocal critic of premier Doug Ford’s decision to enable spirit-based RTD sales in convenience and grocery stores.
The OPSEU said it was “prepared to return to the bargaining table as soon as it is clear to us that Ford and the LCBO are prepared to bargain in good faith a future that will protect good jobs and protect public revenues as well as create more stable and permanent jobs”.
In a statement yesterday (15 July), the OPSEU hit out at Ford’s latest move to bring forward RTD sales, claiming he plans to “dismantle the LCBO and hand billions in public revenues over to the big-box billionaires”.
The union also said Ford’s move to increase access to alcohol would cost upwards of CA$1 billion (US$731m), resulting in “job losses in every community of this province and hundreds of millions of dollars in public revenues drained from our public services”.
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