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Today, at Yummy Market, an independent grocery store and CFIG member, Ontario Finance Minister Vic Fedeli announced changes to the existing framework that governs the sale of beer, wine and cider in the province’s grocery stores. This framework, established by the previous government, allowed for the sale of beer and wine to a maximum of 450 stores (equivalent to the number of The Beer Store locations) with grocers having to submit license bids within a margin range. 
Given the restrictions on numbers and the restrictive margin ranges, many independents opted to not even submit bids. This ended up creating a landscape that had winners and losers.
The changes announced today include allocating the remaining 87 grocery licenses of the 450 on a lottery system, divided by region and “20 percent of authorizations will be reserved for independent grocers.” Also, for the 35 grocers that currently have restricted authorizations, most of these will be lifted so that beginning in October, they can offer a larger selection of wine. The LCBO will also be expanding their agency store program to approximately 200 new, but underserviced communities. These new locations will be called LBCO convenience Outlets. The LCBO will soon release a Request for Proposal identifying the communities and posting that on their website. Businesses in those communities can then apply for a Convenience Outlet. It is likely that multiple businesses who are deemed eligible, may apply for the outlet in one community. In that case, applicants will be entered into a lottery for the successful bid.
CFIG supports the direction the current government is taking to open up the sale of beer and wine in all grocery stores. We also do not support a bidding system nor do we feel the margins set are realistic and fair.
The announcement today by Minister Fedeli, who was introduced by CFIG at the event, is again, all about making improvements to the existing framework. We were briefed, in advance but in confidence, about the announcement today and we indicated that we support the steps taken today as heading in a direction of providing more fairness.
Details of the Minister’s announcement and the explanatory backgrounder are HERE.
BACKGROUNDER More Choice, Convenience, and Fairness for Beer and Wine Consumers
Liquor Control Board of Ontario (LCBO) is also expanding its agency store program to approximately 200 new underserved communities
