Ontario keeps paying Beer Store agreement as alcohol revenue falls
Global News
The latest update to the public cost of alcohol liberalization comes as the budget shows revenues at the LCBO are down, along with taxes on the sale of beer, wine and spirits.
The Ford government has paid the privately-owned Beer Store almost two-thirds of the $225 million it promised the company to reduce the layoffs from alcohol liberalization, new figures released along with the budget show.
The latest update to the public cost of alcohol liberalization comes as the Ontario budget shows revenues at the LCBO are down, along with taxes on the sale of beer, wine and spirits.
Last year, Ontario broke its longstanding exclusivity agreement with The Beer Store as part of its bid to allow convenience, grocery and big box stores to sell beer and wine.
The government earmarked $225 million for the chain, including measures to reduce store closures.
To date, The Beer Store has been paid $130.5 million of that fee, according to the government. It expects to pay the remaining $94.5 million by the end of the year.
Under the $225 million agreement with the government, at least 300 Beer Store locations must remain open until the end of 2025. After that, there will be no restrictions on shutdowns.
The Beer Store has already announced several closures across the province — ranging from Oakville to Toronto and London.
They did not immediately respond to a request for comment from Global News asking if they planned to close more, or all, of their stores after the agreement expires.
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