The Ford government’s fall economic statement says rolling out beer and wine sales in convenience and grocery stores comes with a steep price tag — but one that’s still far from the $1 billion figure the Ontario Liberals put on the plan.
The government’s alcohol expansion plan, which involves dismantling The Beer Store’s market dominance and supporting new retailers, will cost the LCBO an estimated $179 million over the next two years, according to the document. This amount covers discounts promised to retailers — including a 10 per cent wholesale rate — and rebates to brewers, who will need to recalibrate their distribution.
This amount is on top of the early exit from a longstanding agreement with The Beer Store. The province paid $225 million to end the deal, which had been due to expire at the end of next year.