Costco now able to sell alcohol in Ontario as expansion reaches ‘last phase’

Ontario’s plan to expand alcohol sales has reached its “final step,” the province says, with all licensed grocery and big-box stores now able to sell alcohol.

“We promised to give the people of Ontario choice and convenience when buying and selling alcoholic beverages and with today’s expansion, we got it done,” said Premier Doug Ford said in a news release Thursday.

“This last phase of expansion will create new opportunities for retailers of all sizes and for Ontario producers of beer, wine, cider and ready-to-drink beverages.”

The Alcohol and Gaming Commission of Ontario (AGCO) told INsauga.com earlier this week that as of Sunday, 405 grocery store licenses have been approved, which includes big-box stores.

That figure is in addition to the 450 grocery stores that have already been able to sell alcohol.

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

The products that are allowed to be sold at grocery and big-box stores are the same as at convenience stores.

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

LCBOs, meanwhile, 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.

Some grocery stores, however, have said that the province’s empties return requirements may make it impossible for them to participate in the program, with some even saying that they plan on handing back their licenses.

As of late this month, around 4,700 convenience stores and 850 grocery and big-box stores are licensed to sell alcohol, including in large pack sizes, the province said.

Though under the new regulations, around 8,500 eligible convenience, grocery and big box stores in Ontario could be licensed.

The government said the move marks, “The largest expansion of consumer choice and convenience in the province’s beverage alcohol marketplace since the end of prohibition almost 100 years ago.”

The government said it has also permanently provided “more flexibility” for how alcohol can be displayed, with certain limits. It has also permanently allowed the transfer of wine and sprits between bar and restaurant locations owned by the same entity or affiliated licensees to help with inventory management.

To promote safe sales and consumption of alcohol, the province said it’s investing $10 million over five years to promote social responsibility and public health, on top of an additional $396 million announced in the budget, “building on the existing historic investment of $3.8 billion over 10 years for mental health and addictions services.”

And in terms of alcohol pricing, the province said it will be doing a “targeted review” of fees, taxes, and mark-ups on alcohol, “with the aim of promoting a more competitive marketplace for producers and consumers.”

It’s expected the review will be finished by the end of the year.