Doing Business in Ontario

Ontario’s beverage alcohol marketplace is a shared environment that is legislated by the Alcohol and Gaming Commission of Ontario (AGCO), and dominated by three major stakeholders:

The Liquor Control Board of Ontario (LCBO), a Crown Corporation that owns and oversees the distribution channels for its own monopoly retail chain, for restaurants and liquor license holders, and for grocery stores;

The Beer Store, a joint venture retail chain between three of Canada’s largest brewing companies;

Select winery retail stores that are permitted to operate and sell locally-made wines only.

Suppliers and manufacturers from around the world must work with an Ontario agent to introduce their products to the Ontario market. An agency knows buyers, policies, regulations and marketing strategies and will help you navigate business opportunities smoothly. Agents may only canvass for, receive, take or solicit an order for the sale of liquor on behalf of a manufacturer but cannot sell liquor. The LCBO permits a Supplier to appoint only one Agent to represent a specific product or product line. This appointed Agent is referred to as the “Agent of Record” and represents that product in all its package sizes, forms (e.g. bottles, cans, beer kegs, etc.) and the entire brand line for the product across all LCBO sales channels.

Example of an agency’s responsibilities include but are not limited to the following:

• Making applications to sell product to the LCBO.

•  Ensuring Supplier information is accurate and provided in a timely fashion.

• Receiving samples from Suppliers that will be forwarded to LCBO as part of the application process.

• Liaising with the Suppliers regarding packaging and pricing.

• Determining participation in LCBO Merchandising programs.

• Executing Supplier advertising, public relations and other promotional campaigns.

• Liaising with LCBO store managers regarding product knowledge and other promotional activities.

For more in-depth information about doing business with the LCBO, please visit: www.doingbusinesswithlcbo.com.