CSNC Exclusive Q&A: LCBO’s Leanne Rhee speaks on the Crown agency’s plans for 2026
Ontario’s convenience-store alcohol market is changing fast.
Since September 5, 2024, licensed c-stores have been able to sell beer, wine, cider and ready-to-drink (RTD) beverages. There are now more than 5,200 licensed convenience stores across Ontario.
Now, the Liquor Control Board of Ontario (LCBO) is taking the next step with a series of wholesale updates, including a new pricing model and an online ordering platform for c-stores, slated to launch 1 April 2026. These changes aim to streamline ordering, speed up access to new products and modernize the marketplace for retailers.
To break down what these updates mean, CSNC spoke with Leanne Rhee, director of grocery and convenience, wholesale services at the LCBO. She also shares fresh sales data comparing convenience and grocery stores, offering a detailed look at category performance across the province’s beverage alcohol market.
READ: CSNC Exclusive Q&A: LCBO’s Leanne Rhee talks about Ontario’s new beverage alcohol market
The next phase of the LCBO’s Future State Modernization Program was originally set to start Jan. 1, 2026. Why was the timeline extended?
In the past several months, we’ve been busy planning to ensure a stable transition for businesses and have been consulting with various industry groups. An important part of this is listening to feedback. A decision was made to shift the implementation of the next phase of FSM, as well as our assumption of the Wholesaler of Record role and the government’s new wholesale pricing model, to April 1, 2026, to ensure that the 2025 holiday season, and our customers, are not impacted by the implementation.
Can you tell us about the upcoming transition for licensed convenience stores from GMS to the LCBO’s new online ordering platform?
Starting April 1, 2026, convenience store customers will transition to a new online ordering platform, which is currently used by many of our other wholesale customers. Supported by our eCommerce site, this new platform will provide a more integrated experience by offering a single platform for ordering and processing claims. We are also making some process changes including inventory reservation at our warehouses to improve fill rates for LCBO-supplied products.
When it comes to processing claims—which has been a sore point for customers on the GMS—what will that look like on the new platform?
The claims submission process will be integrated into the online ordering platform. All claims that are submitted will be listed with real-time status updates so customers can easily track the status of their request.
You mention a new wholesale pricing model. How is it changing?
A new cost-plus wholesale pricing model is being introduced to modernize how alcoholic beverages are priced to wholesale customers. These changes are expected to make the alcohol market more competitive.
Looking at a full year of convenience-store orders, what insights can you share about sales across different categories in beverage alcohol?
Beer and ready-to-drink (RTD) beverages continue to lead sales across both convenience and grocery stores, while wine comes in slightly below RTDs for grocery stores. In terms of product category share at convenience stores, beer makes up 72% of sales with ready-to-drink following at 23%, wine at 4% and cider at 1%. For grocery stores, beer makes up 73% of sales with ready-to-drink beverages at 14%, wine at 11% and cider at 2%.
The sector in Ontario has expressed a desire for new products and promotions to be made available to c-stores more quickly. Is there anything in the works on that front?
LCBO is committed to supporting government policy changes as we move forward in a more open and competitive beverage alcohol marketplace in Ontario and to enhance our wholesale business. This includes supporting our wholesale customers and suppliers to bring new products to market faster and introducing an open listing process for domestic and imported products and opening up more access to products that are currently only available in LCBO retail.
With all the changes coming in April 2026, what won’t change in terms of how retailers do business with the LCBO?
Order delivery days or in-store pickup locations will not be impacted. Additionally, LCBO and The Beer Store minimum order quantities for delivery will remain intact. And of course, our account team is here to help! LCBO account managers are the primary contact for information, support and service. Meanwhile, inquiries about orders and delivery status should be directed to the LCBO’s Customer Care team.
What initiatives, goals or milestones is the LCBO focused on in year two?
We're focused on creating processes and services to improve efficiency and address our customers' needs. We recently completed a comprehensive wholesale customer survey – our first since marketplace modernization. Based on the results, we can establish a deeper understanding of our wholesale customers’ unique needs, characteristics and behaviours, so we can best support them and help them grow their business.
Now that the holiday season is underway, what should convenience stores keep in mind?
Stores should be mindful of regular holiday ordering deadlines and delivery changes to minimize service disruption. LCBO continues to work closely with retailers to ensure they have the products they need in this busy season.
Thanks, Leanne. Anything else you'd like to share?
We’d like to remind customers that they have a dedicated page on the Doing Business with LCBO website, where they can find the latest updates, and it is also where they will find training information, resources and job aids once available.
As always, we thank our wholesale customers for their partnership throughout the year and wish them a happy and successful holiday season.
