Under a 10-year agreement between Ontario and the foreign brewing companies that own the Beer Store, the retailer will keep the exclusive right to sell 24-packs and most 12-packs in the province.Christinne Muschi
Some Ontario grocers, including Loblaw Cos. Ltd., will start stocking beer on their shelves on Tuesday as the province loosens its ban on supermarkets selling alcoholic drinks.
Still, other retailers that got the green light to carry six-packs of beer will not have the approvals they need by Tuesday. And Ontario has still not ironed out the wrinkles to allow grocers to sell wine.
Wal-Mart Canada Corp. is among retailers that will not be ready until the new year to stock beer as it follows a process set down by the Liquor Control Board of Ontario, spokesman Alex Roberton said.
"We will announce locations in the coming months once permits have been issued and details are finalized, as required by LCBO's process," Mr. Roberton said.
A number of smaller grocers will not be ready by Tuesday. Farm Boy expects that three of its 19 stores will start stocking beer by the weekend with a focus on craft and local brews, chief executive officer Jeff York said.
This fall, Ontario's Liberal government cut a deal that allows up to 450 large grocery stores to sell six-packs, but protects most of the Beer Store's lucrative private monopoly.
Under a 10-year agreement between the province and the foreign brewing companies that own the Beer Store, the retailer will keep the exclusive right to sell 24-packs and most 12-packs in Ontario.
Grocery stores with more than 10,000 square feet of retail space are allowed to bid for a licence to sell six-packs. The first group of 60 licences was to be auctioned off before the end of the year. And 10 government-owned LCBO stores will sell 12-packs; the rest will continue to sell only packs of six or fewer.
On Tuesday, Premier Kathleen Wynne will make an appearance at the Loblaws store on Leslie Street in Toronto to mark the symbolic start of the beer sales in supermarkets.
But grocers still will not carry wine. Former banker Ed Clark, the Premier's adviser on government assets, is still studying stocking wine in supermarkets and is not expected to have a response until the new year.
Ms. Wynne has said the government allowed the Beer Store to retain most of its monopoly because the system keeps average beer prices down, allowing it to achieve economies of scale and pass savings on to customers. The Beer Store is owned by Molson, Labatt and Sleeman, which are in turn owned by Molson Coors, AB InBev and Sapporo. Until the changes, it has sold about 80 per cent of the beer in the province, with annual revenue of $2.5-billion.