Please be advised of the following updates and changes:
Minimum Retail Price Increases
On Friday, March 1, 2024, the minimum retail prices (MRP) for beverage alcohol categories will increase in accordance with Ontario Regulation 750/21 under the Liquor License and Control Act (see here). Please note beer rates remain unchanged from the current rates. These updated rates reflect recent amendments to the regulation governing minimum prices. Similar increases to minimum prices took place in past years. The regulation requires minimum prices to be increased by the three-year average of the Consumer Price Index.
For vendors who wish to re-quote, please note the following key dates:
Friday, January 12, 2024 - revised wholesale quote deadline
Monday, January 29, 2024 - wholesale quote revisions effective
Friday, March 1, 2024 - retail price effective
Quotes must submitted using the Quote Submission Form and emailed to pricing@lcbo.com.
Imported Spirit Pricing (excluding ready-to-drink products)
To align with the new MRP’s, imported spirit vendors will also have their retail price(s) repriced to meet new floor prices effective Friday, March 1, 2024.
Limited Time Offers (LTO)
For impacted products participating in the LTO program in P13, the retail price will be repriced beginning P12, January 29, 2024, to meet MRP.
LCBO Category teams will be providing each agent representative with a list of impacted SKUs on upcoming LTO promotions from periods 13 to period 3 of the following fiscal year. When requoting, include any new LAFR rates from the current review which was communicated on December 8, 2023 (more context on LAFR review below). For example, the new floor price for a 750ml spirit is $31.15, if there is an approved LTO amount of $2.00, LCBO will reprice the product to $33.15 (including $0.20 bottle deposit) to maintain LTO depth. The requote submitted will be to achieve the new $33.15 price point.
Spirits Price Bands
Please find attached a list of the new corresponding spirits price bands here. To ensure that your product is classified in the appropriate price band and/or to notify the Category Manager of any planned changes to retail price, contact jeryca.dillas@lcbo.com for white spirits or peter.cloutier@lcbo.com for brown spirits by Friday January 12, 2024.
LCBO Cost of Service Rates – applicable to ALL beer products
Please be advised that index-linked increases to the LCBO beer in-store and out-of-store cost of service rates will take effect Friday March 1, 2024. The revised rates are listed in the table below and can be found in our updated “March 2024” pricing calculators here.
Fees ($/Litre) | Current | March 1, 2024 |
In-store cost of service | $0.7085 | $0.7411 |
Out of store cost of service | $0.1917 | $0.2006 |
Out of store cost of service (self-delivery) | $0.1190 | $0.1245 |
To administer this change for March 1, the submission schedule for beer price changes will be modified as follows:
· Monday, February 5, 2024 – submissions and vendor quotes due by 4 pm for March 1 effective date.
· Monday, February 12, 2024 – no price change submissions will be accepted.
· Monday, February 19, 2024 – no beer price changes; price change submissions will be accepted on Tuesday, February 20 for March 4 effective date.
· Friday, March 1, 2024 – new rates and retail prices in effect, regular submissions, and price change schedule resumes.
For brewers of Ontario beer listed at TBS, LCBO, or Grocery
To maintain the current retail price, no action is required. The product will be re-priced to reflect the change in Cost of Service, and the vendor quote will be reduced accordingly with no change to the retail price. If a change in price is desired on March 1, please submit the updated Beer Price Submission form.
For brewers of imported beer
Retail prices will be adjusted on March 1 to reflect the change in Cost of Service. To maintain the current retail price for March 1, a rebate quote, via the quote submission form, is required along with a completed Beer Price Submission form. For products listed at TBS, no changes will be made to licensee prices or pack-up prices unless requested by the brewer on the Beer Price Submission form.
All quotes and beer price submission forms must be submitted via email to pricing@lcbo.com by the deadlines indicated above.
Logistics Average Freight Rates (LAFR) Review
The quarterly review of the LAFR is complete and vendors impacted by this review have already received notification. Any vendor wishing to adjust their quote because of this review should consider all the above changes when submitting a revised quotes that are due by Friday, January 12, 2024.
PO Terms and Conditions
Purchase order terms and conditions apply to, and form part of, each purchase order for the purchase of beverage alcohol products issued by the LCBO. These terms accompany each purchase order that issued and a copy of these terms can be found on www.doingbusinesswithlcbo.com or click here.
Questions regarding pricing may be directed to pricing@lcbo.com.
Thank you for your continued support and partnership.