Ontario’s corner stores can now sell alcohol

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Retail stores across Ontario will be allowed to sell alcohol starting Thursday, as the province significantly loosens its grip on the alcohol market.

Small stores are excited about the change and expect to see a significant increase in foot traffic, said Kenny Shim, president of the Ontario Retailers Association, which represents about 7,000 of the 10,000 such stores across the province.

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“I have to admit I’m excited, we’re all excited because sales are down because of the bad economy,” Shim said.

The Ontario Alcohol and Gaming Commission said it had granted 4,200 retail licenses as of Tuesday. That means nearly 40 per cent of retail stores will be able to sell beer, wine, cider and ready-to-drink cocktails.

All grocery stores will be able to sell alcohol by October 31, but spirits will only be available at Liquor Control Board of Ontario stores and outlets.

Shim said the development of retail stores is a lifeline for many stores that have seen a sharp decline in tobacco sales, which he attributes to the rise in illicit tobacco sales and the deteriorating economy.

“When people come in to buy beer, they buy some peanuts, maybe some beer pong glasses, some jerky, bottle openers, that kind of thing,” he said.

Stores will be allowed to sell alcohol from 7 a.m. to 11 p.m., and 20 per cent of the beer, cider and pre-mixed cocktails on offer must be from small Ontario producers, while 10 per cent of the wine on offer must be from small Ontario wineries.

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Shim said liquor stores must remain vigilant about following the rules, because the penalties for violating the law, such as selling to minors or to those intoxicated, are severe. These penalties range from fines of up to $50,000 to the loss of a liquor license.

“I really like it because I’m a law-abiding citizen and we know the county is going to come out with inspectors,” Shim said.

“I have kids too, and the last thing I want is to sell my company to a minor, plus the penalties are so severe that it’s not worth risking your entire business for a few beers.”

The changes are part of a pledge Premier Doug Ford made during his 2018 election campaign to bring beer and wine to convenience stores.

The Beer Store’s 10-year deal with the company had been a stumbling block to that promise until May, when Ford announced he had broken the deal and brokered a new deal with the company. The Beer Store, which is owned by three international companies, will receive $225 million in taxpayer money under the new deal.

Part of the new agreement with Beer Store includes keeping at least 386 stores open through July 2025 and at least 300 stores open through December 31, 2025. Beer Store will continue its widely respected recycling program through at least 2031.

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“This is good for choice and it’s really good for local jobs. So I feel really good,” Finance Minister Peter Bethlenfalvy said in an interview.

The LCBO was established in 1927 when the county moved out of prohibition with strict alcohol controls in place.

“This is a very big fix, but people really want it and we are delivering it,” Bethlenfalvy said.

Several health organizations, including the Toronto Centre for Addiction and Mental Health, have expressed concern and disappointment over the move to expand alcohol sales.

They say easy access to alcohol increases dependence, leads to chronic disease, injuries, suicide and drunk driving.

Bethlenfalvy said the government has spoken to several health organizations about the change.

“We take this seriously, it’s a social responsibility,” he said.

Dr. Leslie Buckley, chief of addiction at the Center for Addiction and Mental Health, said increased access to alcohol goes hand in hand with increased consumption and with that comes more health risks.

“This would clearly be a great time to invest in more alcohol treatment,” she said.

“It’s not necessarily easy to get treatment early or even at the stage of moderate difficulties with alcohol and it would be really great if we could intervene early and give people access to treatment.”

The province said it will spend $10 million to support social responsibility and public health efforts related to alcohol consumption as part of its $3.8 billion, 10-year mental health plan.

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