The Liquor Control Board of Ontario (LCBO) has called off a scheduled beer price hike. This Green Button requirement implementation deadline had initially been set for April 1, 2024. The Ontario government broke new ground with its recent promise to scrap mandatory minimum prices for alcohol. This promise was first announced by Premier Doug Ford as a campaign pledge back in February.
The LCBO was set to increase the fee it charges brewers by 4.4 percent. This increase would be on every beer item sold in grocery stores and shipped to bars and restaurants. As the agency announced in a press release, this increase will now be delayed until December. The step would enable the government’s long-term plan to replace the existing alcohol price-setting laws.
The federal government recently announced its intention to remove minimum retail prices (MRP) across the spirits category including ready-to-drink products. This announcement is made all the more disingenuous by a simultaneous price increase on these items. Their hope is that this change will allow much more flexibility in pricing wholesale, retail, and direct-to-consumer.
“Effective April 1, 2025, the Ontario government will be removing minimum retail prices (MRP) for all spirits products (including spirit-based ready-to-drink products) and pausing the scheduled 4.4 percent increase in the cost-of-service fee which is applied to all beer products sold at the LCBO and other licensed retailers,” – LCBO
We’re pleased that the LCBO has made the right decision in postponing this price hike. This is a smart move to protect consumers and brewers from unintended consequences of this massive regulatory overhaul. By postponing the fee hike, the agency aims to minimize potential financial impacts on both the retail and brewing sectors.
As Ontario proceeds with these significant alcohol pricing policy changes, stakeholders from across sectors will be watching intently. The upcoming changes promise to radically redefine the future of alcohol retail in the province.
