DISCONTINUANCE of PURCHASE
The LCBO, in its discretion, may decide to discontinue buying (or ‘delist’) a product for failure to meet any terms or conditions set out in the Notice to Purchase Letter or Purchase Order, including:
Failure to achieve the specified sales target set for the product
For inconsistent supply
If the Supplier’s marketing commitments for a product are not met
If the Supplier demands an excessive price increase
If the Supplier does not sell the product to the LCBO at the Supplier’s best price
If the Supplier fails to comply with applicable Liquor laws
If the Supplier fails to comply with the Advertising Guidelines of the AGCO
Failure to comply with the LCBO’s Product Packaging/Labeling Standards and Guidelines for Chemical Analysis and CALJ Product Identification Standards
Failure of the product, including its packaging, to comply with any applicable law of Canada or Ontario.
Where a product is discontinued, either by the LCBO or voluntarily by the Supplier, the Supplier must rebate the LCBO 30 per cent of the purchase price for all remaining warehouse and retail inventories of the product and then the LCBO will reduce the retail price accordingly on all future sales of the product. The Supplier may elect to re-purchase warehouse stock only and it will then be returned to the Supplier at the Supplier’s expense. The Supplier may also elect to have warehouse stock that it elects to re-purchase shipped to another jurisdiction at the Supplier’s expense.
Decisions of the LCBO not to purchase a Product or to discontinue/delist a Product may be appealed within thirty (30) days of the date of LCBO letter containing the decision. A written letter of appeal should be addressed to The Appeals Committee, Attention: President & CEO, LCBO.
The letter must set out the extenuating circumstances on which the appeal is based. Please note that the change of an Agent will not be viewed as an extenuating circumstance. A written notice of the LCBO’s decision regarding the appeal will be given setting out reasons for the decision reached. Only one appeal per product is permitted.