Beer and wine could cost up to 50% more when it hits Ontario convenience stores, experts say

The floodgates aren’t opening immediately — and it probably won’t be cheap when they do.
While eligible convenience stores across Ontario will be allowed to sell beer, wine, cider and ready-to-drink cocktails as of Sept. 5, industry insiders say not all of them are likely to do it at once. And some grocery stores that already sell alcohol could stop, because of new recycling requirements.
As for how much you’ll pay at convenience stores and the grocers that stock it? It will be whatever the market will bear, say retail analysts and alcohol industry experts.
For convenience stores, especially, where shelf and fridge space is at a premium, there will be higher prices than beer and wine sold at the LCBO, Beer Store or grocers, said retail consultant Bruce Winder.
“The convenience-store premium could be anywhere from 20 to 40 or even 50 per cent, depending upon the product,” said Winder. “The smaller the store, the higher the premium’s going to be.”
As for how broad the selection will be, Winder said aficionados searching for particular high-end brands might be disappointed.
“They’re going to want to focus on what’s selling, and on what the producers and distributors are saying what the top SKUs are,” said Winder.
Beer author and consultant Stephen Beaumont agreed, on both counts, and pointed to Quebec’s depanneurs as a likely model.
“I think you’re going to see much the same as what you see with the depanneurs, which is that a lot of them will just carry a basic stock of beer,” said Beaumont.
While the new system mandates that 20 per cent of shelf space for beer and cider (and 40 per cent for wine) will be devoted to Ontario craft producers, Beaumont said the biggest craft brands will likely be the beneficiaries.
Still, argued Anne Kothawala, CEO of the Convenience Industry Council of Canada, customers and competition will keep prices in check.
“To suggest that the convenience industry, one of the last entrants to the market, can charge the biggest premium? It’s just not going to work,” said Kothawala, whose association represents large chains. “If you’re a customer, you’re going to be like, ‘three minutes away I have another option, so no thanks.’ ”
While convenience-store operators are excited about the ability to sell alcohol, Kothawala said not everyone’s going to be leaping into the fray at once.
“Is every single convenience store in the province going to sell on Sept. 5, and are they going to sell every single possible product line that they could? I would suggest probably not,” said Kothawala.
There’s concern, said Kothawala, about the “landed cost,” the total amount it costs to get a product onto the shelves. While convenience stores and grocery stores will get a 10 per cent wholesale discount, getting products delivered to convenience stores can be complicated.
“We can’t apply a cookie-cutter model and say, ‘We’re just going to do this exactly the way we rolled out grocery stores,’ for example. Most grocery stores have a loading dock. Most convenience stores do not. So we’re talking about hand-carrying the product in, on a little dolly,” said Kothawala.
Independent operators are also eager to start selling alcohol, said Donna Montminy, executive director of the Ontario Convenience Store Association.
“It’s fair to say the demand from our members is very high,” said Montminy, whose association represents independents.
A spokesperson for Ontario finance minister Peter Bethlenfalvy said the government is still consulting with industry stakeholders.
“Through the lead up, the government will continue to meet and consult with industry partners, local beverage alcohol producers, and other stakeholders and partners to work together on their role in the new marketplace,” said spokesperson Emily Hogeveen.
As for grocery stores, major chains — and some independents — are considering if it will be worth the hassle and expense of selling alcohol at all.
Under the new rules for grocery stores — and big-box stores like Walmart — starting Oct. 31, any store 4,000 square feet or bigger needs to have its own recycling set up to handle empties. Until Jan. 1, 2026, there’s an exemption for stores that are within five kilometres of a Beer Store outlet.
The Retail Council of Canada, which represents large chains including Loblaws, Metro and Sobeys, blasted the recycling requirement, saying it would require hundreds of millions of dollars worth of investments and pose a risk to food safety.
“We were clear with the Ontario government that forcing consumers to return their empty alcohol containers to grocery stores is a non-starter for retailers — one that would ultimately lead to grocers having to make a difficult decision about selling alcohol or removing it from their store shelves in the future,” said Retail Council of Canada spokesperson Michelle Wasylyshen.
Independent grocers share those concerns, said Gary Sands, vice-president of the Canadian Federation of Independent Grocers.
Along with the cost of recycling infrastructure, there are also staffing costs, said Sands. But more important, he said, is the possibility of cross-contamination.
“I’ve been in the stores in Quebec where they have to take the beer bottles and the wine bottles back, and it’s not nice, it’s not pretty,” said Sands. “People walk in with those dirty cans and bottles. We’re not like the Beer Store or the LCBO. We sell food. And food safety has to be the paramount concern.”
Still, Sands added, independent stores are more likely to take part than they were under the expiring Master Framework Agreement, which limited the number of grocery stores that could sell alcohol to 450. Those licences were handed out in a competitive bidding process, with winning bids typically offering a lower profit margin.
“This is a much fairer system. I think just about all of our members will want to sell alcohol, but the recycling is going to be a challenge,” said Sands.