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CICC defends alcohol sales expansion in Ontario after report on escalating cost

The council says expansion gives consumer choice and the report ignores other benefits.
Tom Venetis head shot
Premier Doug Ford holding a beer
Photo: The Canadian Press

With Premier Doug Ford heading to Lt.-Gov. Edith Dumont to ask her to end the Ontario’s legislature’s 43rd parliament, the premier is facing questions as to the escalating cost of expanding the availability of beverage alcohol in the province.

In 2018, Premier Ford campaigned on bringing beer and wine to corner stores in the province. A 10-year-deal with The Beer Store stood in the way of that promise Premier Ford announced he had broken the deal and brokered a new one with the company, paying, the government claimed, was $225 million to end the deal early.

However, the province’s Financial Accountability Officer on Monday released a report that found that the expansion of beer, wine and coolers to convenience stores, including big box stores and more grocery stores, was much higher that the government claimed. Instead, it will cost Ontario taxpayers now $1.4 billion through to 2030 for the convenience of buying beer and wine at corner stores, and $612 million of that is due to the sped-up timing.

With an early provincial election now certain, the opposition members of parliament were quick to jump on the report, and to take the premier and his government to task over the cost.

READ:  Brewing convenience: Crafting a new chapter for convenience stores

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Liberal Leader Bonnie Crombie said it shows Ford has the wrong priorities.

"Doug Ford's priorities are clear, and they're not about serving you," she said. "The $1.9 billion, it could have been used to hire 1,400 family doctors — 1,400 — and that would have been able to care for two million people."

Green Party Leader Mike Schreiner said it's indicative of Ford's general spending patterns.

"Two billion dollars for a waterfront spa in Toronto, $3.2 billion on rebate cheques that are going to millionaires and billionaires — meanwhile our health-care system crumbles and housing starts are bottoming out,” Schreiner wrote in a statement.

Anne Kothawala, president & CEO of the Convenience Industry Council of Canada (CICC) came out to defend the expansion of beverage alcohol sales. The CICC represents corner store distributors, manufacturers, and retailers across Ontario.

“The Ontario government’s modernization of the beverage alcohol market gives consumers what they’ve demanded for years—increased choice, and convenience,” said Kothawala. “It has been a game changer for our stores. Year-over-year comparisons of December 2023 and December 2024 suggest average sales increases of 15%, with many of our members crediting beverage alcohol expansion in Ontario for this needed boost to be competitive. Our store operators are excited to finally offer this product to customers and see the increased foot traffic from this move.”

Kothawala continued that the Financial Accountability Officer’s report ignores the research about the impact of expansion on job creation and additional taxation into provincial coffers. 

“According to economic research conducted by Cascadia Partners for CICC, up to 7,900 new jobs will be created, amounting to $193M annually in new wages,” she added “An additional $200 million annually will go to provincial coffers in tax revenues related to direct consumer purchases, employment taxes and taxes related to the $173M in capital expenditures our stores are making. Beverage alcohol expansion has benefited consumers, corner stores, and provincial coffers.

“There remains room for improvement to ensure that local corner stores see the full benefit of this policy. While we actively work with government partners to ensure Ontario’s alcohol regime is working for everyone, expanded sales have been critically important for local businesses across the province, and we’re optimistic about what is to come.”

With files from The Canadian Press

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