Some alcohol prices in Ontario could rise in the new year
Global News
Some alcohol prices in Ontario could rise in the new year, with several changes to the alcohol marketplace set to take effect.
Some alcohol prices in Ontario could rise in the new year, with several changes to the alcohol marketplace set to take effect.
The changes flow from Premier Doug Ford’s plans to expand and modernize how alcohol is sold in the province, which has seen beer, wine and coolers now sold in convenience stores, a sharply reduced footprint for The Beer Store and a shifting system for empties.
When the expansion was announced last year, the government said all retailers would have a 10 per cent wholesale discount from the LCBO until an overall new wholesale pricing structure is rolled out in 2026. This spring, the government temporarily increased that discount to 15 per cent for bars, restaurants and convenience stores, citing the need to protect them from impacts of U.S. tariffs.
That is set to end Dec. 31, and some of those businesses say it may mean they have to pass their price increase on to their customers.
Restaurants already operate under tight margins, with 41 per cent unprofitable, said Kelly Higginson, president and CEO of Restaurants Canada. It’s reasonable to assume that at least some will pass on their higher alcohol costs as of Jan. 1 due to the reduced discount.
“We have also seen double-digit inflationary pressures around food, around insurance, around commercial rent — you kind of name it, it’s gone up,” she said in an interview.
“We haven’t raised menu prices as much as our input costs have been increasing, but we will have to raise prices for alcohol. We will not have an option, because we can’t continue to raise prices on food.”
Anne Kothawala, the president and CEO of the Convenience Industry Council of Canada, also said it is possible some corner stores may have to increase alcohol prices. But what they and many others in the alcohol marketplace are perhaps more concerned about is a looming new cost structure.
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