We’d like to provide an update as we continue to operationalize the provincial government’s expansion of the beverage alcohol marketplace in Ontario.
As you may remember, this is a phased rollout as follows:
- From July 18 – Up to 450 currently-licensed grocers started ordering large-pack sizes of beer and eligible ready-to-drink (RTD) products and they are now on shelves across the province.
- From September 5 – Convenience stores may start selling eligible beer, wine, cider, and RTD products. Ordering commenced on July 29.
- From October 1 – Convenience stores may start ordering additional LCBO-supplied products supported by our expanded distribution network. Refer below for more details about supplying sources. Convenience stores may start selling products once they are received. Meanwhile, newly-licensed grocery stores can start ordering all eligible products.
- From October 31 – Newly-licensed grocery stores may start selling eligible beer, wine, cider, and RTD products.
Supplying sources
It is important to understand ‘supplying sources’ when it comes to grocery and convenience stores. While grocery and convenience stores purchase all products through LCBO’s online ordering system, GMS, LCBO coordinates with over 260 supplying sources to ensure that orders are fulfilled and delivered to licensed stores on behalf of the LCBO.
As an Ontario manufacturer who wants to make products available to grocery or convenience stores, you can select LCBO as the supplying source or choose to be the supplying source. The supplying source coordinates the fulfillment and distribution across the province on behalf of the LCBO. If you choose to do so, you can deliver your product to licensed retailers or work with a third-party logistics company (e.g. The Beer Store or TNG). There can only be one supplying source for each product in GMS and the supplying source is the same to both licensed grocery and convenience stores. To switch supplying sources, contact your LCBO Merchandising representative and allow up to two-to-three weeks for this change to take effect.
As Ontario’s Importer of Record, LCBO is the supplying source for all import products, and you are unable to switch supplying sources.
Convenience or grocery store product catalogues
There are currently more than 1700 products in the convenience store catalogue, but more are added regularly as the product submissions complete the listing process. As a reminder, for Ontario-based products, it can typically take up to fifteen (15) weeks from an initial submission to being added in GMS. As a reminder, you can help expedite the process by providing complete and accurate submission information during the submission process and responding quickly to LCBO requests for additional information.
As an imported product you must be listed at the LCBO to be eligible for the grocery or convenience product catalogue. Contact lcbogroceryoperations@lcbo.com if you would like to verify that your product is on the eligible product catalogue.
Shelf space requirements
In line with the regulations, convenience stores must meet shelf space requirements. This means that if a retailer carries any of these categories, the following rules apply:
· At least 40% of wine products on display must be quality assurance wine (such as VQA), wine from small wineries, or from a small wine-producing country (of which 10% must be small wineries).
· At least 20% of beer, cider or RTD products on display must be from small manufacturers (defined in regulation).
Financial or non-financial demands
Convenience stores cannot indirectly or directly request, demand or receive financial or non-monetary benefits from liquor manufacturers. This includes the provision of shelf space, product listing for a manufacturers liquor or any merchandising, marketing or promotional opportunity. Please contact AGCO should you have any questions or encounter any issues.
We hope that this update was useful. For more information, please visit the dedicated marketplace page for trade. You may also find the dedicated page for grocery and convenience stores useful. If you have any questions, please reach out to your LCBO representative.