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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.

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.