CFIB slams Canada’s inaction over DTC alcohol sales
A Canadian association has called for clarity from local governments over their commitment to enable nationwide alcohol access by the end of this month.
The Canadian Federation of Independent Business (CFIB), described as the nation’s largest association of small and medium-sized businesses, called out local governments for their ‘lack of transparency and progress’ regarding direct-to-consumer (DTC) alcohol sales across the country.
Since July 2025, Ontario and 10 other jurisdictions have signed a memorandum of understanding that commits them to advance nationwide DTC alcohol sales by May 2026.
However, with just days left until the May deadline, the CFIB has criticised Canadian governments for ‘virtually no movement’ in following through with the commitment.
“Announcing commitments is not the same as delivering results,” said Keyli Loeppky, senior director of Alberta and interprovincial affairs at CFIB. “With the deadline essentially here, small businesses deserve clarity on what’s actually being implemented and when.”
Currently, only Manitoba and New Brunswick permit DTC sales of all alcohol. Meanwhile, Ontario and Nova Scotia signed a ‘limited’ deal enabling DTC between the two provinces in March this year.
The association says that other DTC agreements remain ‘fragmented’. Nova Scotia and British Columbia (BC) allow only the shipping of Canadian wine, and BC permits spirits DTC only from Saskatchewan.
Furthermore, Alberta authorises DTC shipping of BC wine only. Saskatchewan allows wine and spirits to be delivered from BC only.
Alberta and Saskatchewan have fully privatised retail systems, while other provinces rely on government‐run liquor boards.
The CFIB said it would continue to urge governments to remove ‘unnecessary’ trade barriers between provinces, allow DTC shipping of all alcohol with extra paperwork and markups (like in Manitoba and New Brunswick), communicate timelines transparently and expand the Canadian Mutual Recognition Agreement on Goods free trade deal to cover alcohol sales.
“Direct-to-consumer alcohol shipping is the bare minimum of what governments should be doing to improve internal trade of alcohol products within Canada,” added Loeppky.
“Some may dismiss DTC as a small or symbolic change, but it is an important first step. It signals that governments are finally moving in the right direction on reducing outdated barriers that prevent Canadians from buying and selling across provincial borders.”
Since March last year, American spirits have been banned from all but two Canadian provinces due to trade tensions.
This has caused sales in the Liquor Control Board of Ontario (LCBO) – Canada’s largest alcohol market – to fall by CA$100 million (US$73.1m) according to its third-quarter update.
Last month, the Canadian Craft Distillers Alliance called on the country’s prime minister to lower spirits tax as the sector suffers a “significant structural disadvantage”.
Meanwhile, Alberta recently proposed legislation that would recognise the region with its own official whisky definition.
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