A multimillion-dollar dispute between the Liquor Control Board of Ontario and… well, liquor, might complicate your summer patio plans.
Driving the news: An industry group representing summer cocktail fixtures like Crown Royal, Bacardi, and Aperol says some products could be pulled from Ontario liquor store shelves as its brands face over $100 million in fines from the province’s alcohol retailer.
Why it’s happening: The LCBO, which says it’s purely acting in the interest of Ontario consumers, claims some brands violated contract conditions by giving Québec’s SAQ lower pricing for some products in 2023.
- An LCBO press release states that “Ontario consumers have paid up to $40 more on select brands of product,” and it is asking for chargebacks for the discrepancy.
- Spirits Canada says the LCBO is taking advantage of its own regulations that allow the price of alcohol to rise every year to boost its own profits while squeezing suppliers.
Why it matters: Since the LCBO is the only liquor distributor in the province, suppliers have little choice but to agree to its terms. But if anyone can take on the retailer, it might be Spirits Canada — whose members currently produce about 70% of the spirits in Ontario stores.—SB