LCBO overhaul: Starting Jan. 1 pricing changes, alternative delivery partners may be on the way
As the Liquor Control Board of Ontario prepares to become the province’s exclusive wholesaler of wine, beer and RTDs, a new pricing model will change how beverage alcohol costs are calculated for c-stores.
Effective Jan. 1, 2026, the LCBO will take over wholesale operations using a formula based on landed cost + wholesale mark-up + COSD (if applicable) + container deposit + HST.
In an update posted this morning to its website, the Crown corporation states the “new pricing model closely aligns with industry standard best practices and will streamline and simplify the current wholesale pricing model.”
Wholesale prices will be uniform across grocery stores, c-stores, The Beer Store, LCBO outlets and hospitality licensees.
Most products will follow a fixed percentage mark-up based on alcohol by volume (ABV) and category, while beer will maintain a volumetric mark-up with different rates for manufacturers, microbrewers and draught versus non-draught products.
Beverage alcohol suppliers can submit updated quotes for the new pricing model until Nov. 20, 2025, to ensure the Jan. 1 rollout reflects the latest cost structures.
LCBO exploring alternative distributors for product delivery
Beyond pricing, the LCBO is taking additional steps to enhance its wholesale business.
By July 1, 2026, an open listing process will allow faster access to domestic and imported products, including items previously exclusive to LCBO retail stores (apart from spirits).
The corporation is also exploring distribution changes to enable private retailers to work with alternative distributors for product delivery. For now, though, the LCBO noted that “there are no changes to its direct delivery program at this time.”
“More information on these initiatives will be shared later this year,” it added.
Vendors can get a detailed rundown of the changes during a virtual trade session the LCBO is hosting on Oct. 21 from 9 a.m. to 10 a.m.
Convenience operators and category managers are invited to join an information call on Friday, October 24 at 10 a.m. Check your email for more details. To ensure concerns are addressed, retailers are encouraged to submit questions in advance.
More details can be found here.
