The Ontario government’s decision to speed up the sale of beer in grocery stores and corner stores has sparked a heated debate over the true cost of implementing this policy ahead of schedule. Premier Doug Ford and Finance Minister Peter Bethlenfalvy announced the accelerated timeline in late May, with the phased expansion set to begin on Aug. 1.
The plan includes allowing convenience stores to sell beer, cider, wine, and ready-to-drink cocktails after Sept. 5, and permitting all grocery stores and big box stores to sell these products, including large-pack sizes, after Oct. 31. This move is expected to add 8,500 new locations where Ontarians can purchase alcohol.
However, the cost of this policy remains a point of contention. While Ford and Bethlenfalvy stated that a maximum of $225 million had been allocated to assist The Beer Store in transitioning and keeping some stores open, the Ontario Liberals claim that the actual cost could exceed $1 billion. They argue that the province will incur expenses related to The Beer Store, LCBO rebate fees, wholesaler discounts, and lost license fees.
The Liberals estimate that the government’s plan to offer a 10% discount to grocery stores purchasing products from the LCBO could cost around $150 million over two years. They also believe that Ontario could have generated over $300 million by auctioning alcohol sale licenses instead of allowing stores to sell alcohol without additional costs.
Ontario Liberal Leader Bonnie Crombie criticized the government’s decision, calling it a “billion-dollar booze boondoggle” that benefits major grocery chains and big-box American stores at the expense of Ontarians. She emphasized that the figures provided by the Liberals do not include potential revenue losses if fewer people shop at LCBO stores.
In response, Minister Bethlenfalvy dismissed the Liberal’s claims as “made-up numbers” and reiterated that the government’s focus is on supporting front-line workers at The Beer Store. He promised to provide updates on the costs associated with the early alcohol sale expansion in future financial updates.
The debate over the cost of implementing the accelerated beer sales policy has reignited speculation about early elections in Ontario, with the government facing scrutiny over its handling of the issue. As the summer break begins for politicians and cabinet ministers, the controversy surrounding this signature Ford government policy shows no signs of abating.