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CFIG was informed today by the Ontario government, that what may have been missed in their communications at last week’s announcement, was the date and process for the lottery system.
As announced last week, an additional 87 beer, wine and cider licenses will be issued, based on a lottery system. At least 20 percent of those licenses will be set aside for independents.
THE DEADLINE for applying to enter that lottery is JUNE 20th
See LCBO Convenience Outlet Program Application for Authorization to Sell Beverage Alcohol
Also, if for example, you are a grocer with an existing Beer license, you may enter the lottery and if successful, your beer license will become an unrestricted licence. Hence, you can sell beer, wine and cider. If you have multiple licenses, you can apply for a lottery and change the status of one of your existing licenses.
Margins for Independents will be an average of what independents have previously bid in Class B. The class reserved for independents. A link to the LCBO procurement application is here.
One additional, but important note: If you win a license the term of the agreement is set for 10 years. However, as the industry and government are expecting more expansive changes in the months ahead, a “trigger” will be in the contract that allows it to be cancelled in the event of legislative changes overtaking the existing framework.
