LILLEY: Ford delivers on beer and wine promise, but with a catch (2024)

You’ll be able to get beer, wine and cider in corner stores by the end of the summer, Premier Doug Ford announced Friday morning. The announcement moves up the changes by a significant margin with the province having previously only said the move to expanded sales would happen before Jan. 1, 2026.

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The cost of that move, though, is raising questions, but proponents say the benefits are clear — more jobs and more tax revenue for the government.

Starting Aug. 1, grocery stores that already sell booze will be able to expand their offerings including ready to drink co*cktails like a Caesar in a can and larger cases of beer. After Sept. 5, convenience stores will be able to do the same while new grocery stores and big box stores like Costco can come online as of Oct. 31.

One thing raising questions is a pledge to pay The Beer Store up to $225 million over the next 19 months for what are described as “added costs.”

Those added costs will include ramping up distribution and recycling facilities to deal with all the new stores. A new agreement between the province and TBS states that “to facilitate the use of TBS and its efficient recycling and distribution systems for the benefit of Ontario on terms acceptable to the Parties.”

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The agreement also specifically states that TBS must keep 386 retail stores open until at least Jan. 1, 2026.

In part this $225 million is for services TBS will be providing to the province, like recycling. It will also in part be about subsidizing unprofitable stores and preserving jobs for the next 19 months.

Some of these costs were going to be incurred no matter when the expansion of booze sales happened. The province already pays TBS to run the recycling program for them, so those costs would have to be paid but clearly some of this is paying off The Beer Store for ending their contract early.

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Supporters of the plan to expand sales say the financial impact will be significant, including increased taxes for government.

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A study on the economic impact of these changes conducted for the Convenience Industry Council of Canada predicts between 7,000 to 7,500 jobs created. Most of those would be in retail but they also project 500 to 800 in what are described as “middle income jobs.”

The study also projects $165 million spent on installing coolers and other infrastructure. As for taxes, the study estimates more than $200 million in annual tax payments being generated with 69% going to the provincial government.

“Our plan will create new growth opportunities for local brewers, wineries, retailers and small businesses. It’s going to support local jobs and most importantly, it’s going to give people more choice and convenience,” Ford said.

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The move to expand alcohol sales was fought for fiercely by the convenience store industry and by craft brewers who see this as a real opportunity for expansion. By contrast, the changes have been fought for years by The Beer Store and its owners Labatt, Molson and Sleeman.

Right now, Ontario has the fewest retail alcohol stores per capita, excluding bars and restaurants, in all of Canada. There are just 2.4 stores per 10,000 population in Ontario compared to 21.1 in Newfoundland and Labrador and 12.2 in Quebec.

After these changes, the province expects there to be 9.4 retail stores per 10,000 population.

Ontario is finally catching up to other provinces and many states south of the border. It’s a change that many politicians have promised but never delivered on.

Ford now gets to claim credit for doing what others couldn’t. Whether the public will raise a toast to him or have a sour taste in their mouths over the $225 million payment is the only open question.

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