Mark Anthony Group faces fine for ‘unfair promotion’
The Alcohol and Gaming Commission of Ontario (AGCO) has fined White Claw owner Mark Anthony Group CA$40,000 (US$29,418) for allegedly paying retailers to promote its products.
The Ontario government’s AGCO agency is responsible for regulating alcohol, gaming, horse racing and cannabis retail stores.
In November 2024, the AGCO launched an investigation following concerns that Mark Anthony Wines had been unfairly promoting its products in Ontario.
Through its investigation, the AGCO alleges that the company had paid more than 130 retailers up to CA$225 per store to display posters promoting its brands through a marketing firm.
It claimed that the retailers were also encouraged to purchase and stock higher volumes of Mark Anthony products featured in the promotions.
Under Ontario’s 2019 Liquor Licence and Control Act, it is illegal for companies to offer financial benefits or inducements to retailers to increase sales or availability of an alcohol brand.
The AGCO said this activity creates an ‘unfair advantage that disproportionately benefits large multinational corporations with greater financial resources at the expense of smaller local and independent companies’.
Karin Schnarr, CEO and registrar at AGCO, said: “The AGCO is committed to maintaining a fair and competitive alcohol market. Undisclosed financial incentives corrupt market integrity and are a clear violation of Ontario’s regulations.
“This penalty sends a firm message: we will hold all licence holders accountable for compliance and ensure that small, independent producers have the opportunity to succeed in Ontario.”
Mark Anthony Group has the right to appeal the decision.
‘Unfortunate situation’
In response to the fine, Rich Andrews, president of Mark Anthony Wine & Spirits, said the group is “100% committed to upholding the highest standards of compliance and ethical conduct in all our operations, ensuring a fair and compliant marketplace”.
He explained: “Leading up to the introduction of beer, ready-to-drink, and wine into the Ontario convenience channel in 2024, our group was contacted by a third-party advertising firm with extensive experience in advertising and engaged in a proposal for an out-of-home advertising campaign.
“As the first foray into this channel, our understanding was that this style of campaign adhered to the comprehensive compliance of the AGCO regulations.
“Upon receiving notice from the AGCO, we immediately removed this campaign from the market to ensure a swift and appropriate resolution to the matter.
“This is an unfortunate situation, and we regret any inconvenience that may have resulted.”
He added that the group would ensure its operations “continue to be 100% aligned with the regulations set by the AGCO”.
Headquartered in Vancouver, Canada, Mark Anthony Group produces wine, spirits and ready-to-drink products. Its portfolio includes White Claw Hard Seltzer, Canadian whisky Bearface and Irish whiskey and gin maker Glendalough.
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