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Ontario Implements Major Alcohol Sector Reforms with $425M Investment

The Ford government enacts sweeping changes to boost local production, support retailers, and modernize alcohol sales while addressing declining revenues.

Ontario Finance Minister Peter Bethlenfalvy watches as Ontario Premier Doug Ford speaks to media at a press conference at the Cool Beer Brewing Company in Toronto, on Wednesday, July 10, 2024.
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People walk by an LCBO in Toronto, on Tuesday, March 4 2025. THE CANADIAN PRESS/Arlyn McAdorey

Overview

  • Ontario's 2025 budget allocates $175 million over five years to double the use of Ontario-grown grapes in blended wines, benefiting farmers and wineries.
  • More than $250 million in tax cuts and fee reductions are being implemented over two years to support alcohol retailers and make products more affordable.
  • The Liquor Control Board of Ontario has increased wholesale discounts for 23,000 small businesses from 10% to 15% until the end of 2025, saving businesses $56 million.
  • The government has paid $130.5 million of a $225 million transition agreement with The Beer Store, with $94.5 million remaining to be paid by year-end.
  • Revenues at the LCBO are projected to drop to $1.85 billion in 2025-26 due to shifting consumption patterns but are expected to rebound to $2.4 billion by 2027-28.