Are convenience stores complying with alcohol sale rules in Ontario?

A further expansion of alcohol sales is set to take effect in Ontario later this month as hundreds of additional grocery stores begin offering booze in their shops.

The move comes after thousands of convenience stores were allowed to sell beer, wine, cider, and ready-to-drink beverages as of Sept. 5.

With Ontario experiencing what the Ford government has called the “largest expansion of consumer choice and convenience since the end of prohibition almost 100 years ago,” are the thousands of new alcohol retailers complying with provincial rules around sales?

INsauga.com reached out to the Alcohol and Gaming Commission of Ontario (AGCO) to find out and it appears that overall, things are running smoothly.

A spokesperson for the AGCO said in an email that inspectors “have been out in force” since the expanded market began.

During each visit, inspectors “help licensees better understand their responsibilities under the regulations and standards that govern this new sector,” the spokesperson said.

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“Overall, we’ve been pleased to note a high level of compliance,” the email continued.

Most of the identified issues thus far have been related to signage, advertising, and product categories.

The AGCO hasn’t issued monetary penalties or had to suspend any of the thousands of licenses, other than one that happened before the launch.

In that case, a convenience store had its license suspended after allegedly selling booze before the expanded marketplace took effect on Sept. 5.

It was also allegedly offering spirits for sale, which are not part of the new alcohol market in convenience or grocery stores.

As of Sept. 30, 4,529 convenience store licenses had been issued in Ontario.

“We will continue to monitor the sector closely as it evolves,” the AGCO spokesperson said.

“We will take appropriate action to ensure the transition to the new, expanded marketplace continues smoothly. We have a range of regulatory actions we can take where violations are identified. Those include education, warnings, monetary penalties, suspensions, and, in severe cases, license revocation.”

Since applications opened in June for the convenience and grocery store licenses, efforts have been made to educate licensees about the rules in the new framework, the spokesperson said.

That includes increasing inspection capacity by around 25 per cent and also launching a compliance resource page.

Hundreds of additional grocery stores licensed to sell as of Oct. 31

Meanwhile, by the end of this month, more grocery stores — beyond the up to 450 across Ontario that are already able to sell alcohol — as well as big box stores, will be allowed to offer booze in their shops.

The AGCO has approved 223 new grocery store licenses as of Sept. 30, which is in addition to the grocery stores already licensed.

The new licensees can start selling as of Oct. 31.

The further expanded marketplace will include Costco warehouses and based on data from the AGCO, every Costco location in Ontario has been approved for a license.

The products that are allowed to be sold at grocery and big-box stores are the same as at convenience stores: beer, cider, wine and ready-to-drink beverages.

Only products bought through a business account with the LCBO are allowed to be sold at convenience, grocery and big-box stores.

LCBOs, meanwhile, will continue to be the only places where people can purchase spirits, other than at distillery retail stores and LCBO convenience outlets.

The Beer Store continues to operate as well.