On April 1, 2026, a new wholesale pricing model will be implemented as part of the provincial government’s commitment to a more open, equitable, and competitive beverage alcohol marketplace that benefits consumers and businesses.
Full details on the model and rates can be found here.
Wholesale pricing - What you should know
• The model remains a cost-plus structure, with wholesale customer prices calculated based on landed cost + wholesale mark-up + COSD (if applicable) + container deposit + HST.
• Targeted rates adjustments to support a smooth and stable transition.
• Beer sold through the Direct Delivery Program will be subject to the new cost‑plus wholesale pricing structure.
• A warehouse handling fee of $2.17 per case will be charged to suppliers for beer handled through LCBO warehouses, that is set to reflect LCBO’s warehousing costs
Additional information can be found in the attached deck and on the pricing page.
Other annual pricing updates
• Minimum Retail Pricing (MRP) – wine and cider indexed effective April 1, 2026
• Effective April 1, 2026, MRP for cider and wine (including wine‑based RTDs) will increase under O. Reg. 750/21.
• LCBO‑listed products below revised MRP will be automatically adjusted for April 1, 2026.
• For Period 1 2026/27 Limited Time Offers (LTOs), retail prices will be forced to floor price where applicable; LTOs below threshold will be cancelled.
• Reminder: Last year as of April 1, 2025, MRP for all spirits (including spirit‑based RTDs) was removed. MRP for beer (including malt‑based RTDs) remains unchanged.
• Beer Basic Mark-Up – Indexation Pause
• The Ontario government has made regulatory amendments to further pause the indexation of beer basic tax rates
• As a result, LCBO will pause indexation of beer basic mark‑ups scheduled for March 1, 2026 and begin annual indexation adjustments starting March 1, 2027.
• Logistics Average Freight Rates (LAFR) Review
• The quarterly review of the LAFR is complete and suppliers impacted by this review have already received notification with quote changed Submissions received by 12PM on February 26, 2026, to be effective March 2, 2026.
Upcoming requote deadline
Alcohol suppliers have the option to adjust their quote before the new pricing model is in effect on April 1, 2026. Quotes will be accepted until February 26, 2026 for an effective date of March 2, 2026. Suppliers will continue to submit quotes using their current process.
We will be holding a Quarterly Trade Update webinar on February 23; please submit any questions you may have and we will do our best to answer them on the call.
Otherwise, questions regarding pricing may be directed to pricing@lcbo.com