AGCO/LCBO Joint Webinar Q&As – How to become a licensed alcohol retailer in Ontario

Q. What are the requirements for a retail licence?

A: To qualify for a Convenience Store or Grocery Store Licence, your business must meet the eligibility criteria and requirements. Please see the Liquor Licence and Control Act, 2019 (LLCA) and its regulations for full details.

For more information, visit this webpage: Apply for a convenience store or grocery store licence.

Q. Is there a minimum size requirement for the retail floor space?

A: There is no minimum retail floor space requirement to qualify for a Convenience Store Licence, but there is a maximum. A licensed convenience store may only have a maximum of 4,000 square feet of retail floor space.

To qualify for a Grocery Store Licence, a store must have more than 4,000 square feet of retail floor space.  

Q.  Can convenience stores that are connected to a gas station sell liquor?

A: Convenience stores that are connected to a gas station can apply for a retail store licence.

Q. Are there any limits on the number of applications being accepted or licences issued?  Is there a deadline to apply for a licence?

A: There are no limits on the number of applications accepted or licences issued. Applications opened on June 17, 2024. Applications are processed as they are received.  

There is no deadline to apply for a retail licence.  Retailers can apply at any time but should consider the necessary time to complete all required stages, including the time for the AGCO to process your application, the time required for you to onboard with and buy liquor products from the LCBO, and the time required for you to ensure that everyone who needs to complete an AGCO Board-approved training program does so.

For more information regarding the application process, please visit AGCO’s Application Guide for Convenience Store Licence & Grocery Store Licence.

Q. My store is located in a First Nations community.  Are there any additional steps I need to take?

A: First Nations council of the band can pass a resolution requesting that the Registrar not issue any grocery store licences or convenience store licences for alcohol retail stores to be located on their reserve. If the Registrar receives a copy of such a resolution, the Registrar is prohibited from issuing these licences. Before you apply, check the list of First Nations communities that have decided not to allow alcohol retail stores on their reserve. If the First Nations community does not prohibit the issuance of a grocery store licence or a convenience store licence on their reserve, you must obtain a resolution from your Band Council approving the licensing of your store and upload the resolution with your application.

Q.  I have an iAGCO account and an active licence/registration issued by the AGCO.  Is there a separate application process?

A:  If you already have an iAGCO account, simply log in and follow the prompts to apply for your retail licence. 

If you don't already have an iAGCO account, you’ll need to create one with your email address and a password.

If you have, or previously had, a licence, permit, authorization, and/or registration with the AGCO, but do not currently have it connected to an iAGCO account, please call:

AGCO Customer Service: 416-326-8700 / 1-800-522-2876 (toll-free in Ontario)

Our agents will provide you with an access code you can use, which will auto-generate the information we already have on file about you into your iAGCO account without you having to re-enter it all yourself. Using an access code makes the application process easier and quicker for you!

Q. Do retail chains or franchises with multiple retail locations need to apply for more than one licence?

A: Yes.  Each retail store requires a separate licence.  Applications must be made by the entity that owns and operates the store (e.g., the franchisee) and the licence will be issued to that entity.

Q: Can I operate a standalone liquor store?

A: No, all licensed grocery and convenience stores must continue to operate as a grocery store or convenience store, meeting all eligibility requirements (such as the square footage and food type requirements), through the duration of the licence.

For more information about eligibility, visit this webpage: Apply for a convenience store or grocery store licence.

Q. What are the hours for retail sale of liquor?

A: Liquor can only be made available and sold to customers between the hours of 7 a.m. and 11 p.m. on any day.  Liquor must be delivered only between 9 a.m. and 11 p.m. on any day. You can only sell, allow in-store pickup, and perform deliveries of liquor within the permissible hours of sale, even if your store is open for longer (e.g., 24 hours).

Licensees may choose to further limit the hours of liquor sales. In addition to not selling outside of the permissible hours of sale, store licensees may choose to lock the refrigerators in which the products may be located, create a partition around the display aisles, or lock the point-of-sale system to disallow the sale of liquor outside of the permissible hours.

For more information, visit the AGCO’s Hours for liquor sale, service and delivery page.

Q. Can customers consume liquor in the retail store?

A: No. A retail liquor licence does not permit customers to consume alcohol on-site in the retail store.  On-site consumption is only permitted under the authority of a licence to operate a liquor consumption premises. Licensed grocery stores may offer samples of liquor products. Please consult the sampling section of the Registrar’s Interim Standards and Requirements for more details.

Q. How should liquor be displayed in the store?

A:  All liquor that is sold in a licensed convenience or grocery store must be displayed in a single contiguous product display area.   Contiguous product display means the liquor products are next to or touching one another.  Within the single contiguous product display area:

1. All beer and cider is displayed together,
2. All wine (excluding cider) is displayed together, and
3. All ready-to-drink (RTD) beverages are displayed together.

This requirement does not apply to liquor that is displayed in an area that is not accessible to the public.

Q. Are there shelf space requirements for liquor offered for sale in the store?

A: Yes.  Licensees must ensure that a percentage of beer, cider, wine, and ready-to-drink (RTD) beverages on display in the store are from small breweries, small cideries, small wineries, and small distilleries. Requirements are that:

• At least 20 per cent of containers of beer displayed are produced by small breweries,
• At least 20 per cent of containers of cider displayed are produced by small cideries,
• At least 10 per cent of containers of wine displayed are produced by small wineries, and
• At least 20 per cent of containers of ready-to-drink (RTD) beverages displayed are produced by small breweries, small distilleries, or small wineries.

The licensee shall ensure that at least 40 per cent of the containers of wine, excluding cider, on display in the grocery store, outside of any wine boutique, or in the convenience store, are containers of wine that are produced using grapes from a single country and in respect of which at least one of the following criteria is satisfied:

1. The wine is quality assured.
2. The wine was produced by a small winery.
3. The country where grapes were grown produces, in the aggregate, less that 150 million litres of wine annually grown from grapes grown in that country.

Licensees can request from the LCBO a list of liquor products that could satisfy the shelf space requirements and are available for sale to grocery stores and convenience stores.

Q. Can store-branded liquor products be manufactured for and sold in the store?

A: Licensees must not offer a brand of liquor for sale at their store if the licensee or any of its affiliates has a direct or indirect financial interest in the brand or a trademark under which the brand of liquor is marketed.

Q. Can a retailer set their own prices for the liquor they sell?

A: Starting September 5, 2024, licensed convenience and grocery store retailers in Ontario can set their own retail prices for liquor that are different from those of the LCBO. Ontario Regulation 750/21 establishes minimum prices for each type of liquor and container size. Retailers will have the flexibility to set or adjust pricing for liquor, as long as the retail sale price is not less than the minimum price as set out in the Regulation.

As a reminder, convenience stores that received a licence on or after June 17, 2024 can sell alcohol no earlier than September 5, 2024. Grocery stores that received a licence on or after June 17, 2024, are unable to legally sell alcohol until October 31, 2024.

For more information, please refer to Ontario Regulation 750/21.

Q. Is there a maximum price for liquor sold in the store?

A: No.  While Ontario Regulation 750/21 establishes minimum retail prices for liquor, it does not specify maximum prices.  Retailers have the flexibility to set or adjust pricing for liquor, as long as the retail sale price is not less than the minimum price as set out in the Regulation.

For more information, please refer to Ontario Regulation 750/21.

Q. Can a convenience or grocery store retailer offer discounts on liquor or special offers to customers purchasing liquor?

A: Convenience and grocery stores can set their own retail prices for liquor, as long as the sale price is not less than the minimum price as set out in Ontario Regulation 750/21.

A licensee cannot offer free or discounted merchandise that requires the purchase of liquor.

Q. Can I advertise that liquor is available for sale at my store?  Are there any restrictions or rules related to marketing?

A: Licensees cannot advertise or promote liquor or its availability, unless the advertising is conducted in accordance with the Registrar's Guidelines for Advertising and Promotion under the Registrar’s Interim Standards and Requirements for Liquor.  Any and all advertising, including online advertising or marketing, must comply with the requirements specified in the Liquor Licence and Control Act, 2019, its regulations, and the Registrar’s Interim Standards and Requirements for Liquor.

Q. Are there regulations or requirements for storing liquor?

A:  Any liquor that is not on display must be stored in a secure area within the licensee’s premises.  This includes liquor that has been purchased online by a customer but has not yet been picked up.

For more information, refer to section 6 of the Registrar's Interim Standards and Requirements for Liquor.

Q. Do storage areas or coolers need to be locked?

A: No.  Licensees are not required to lock coolers or storage areas. Licensees have the flexibility to determine how best to store and secure liquor in their store.

Q. Can liquor be delivered to a customer?

A: Yes.  Licensees can deliver liquor themselves for a fee from their retail store.  The order must be fulfilled from the inventory of the store.  Liquor can also be delivered through a licensed Liquor Delivery Service (LDS). Liquor can also be delivered through food delivery services that are licensed as a Liquor Delivery Service.

Q. Who needs to participate in a liquor retail training program?

A: Retail licensees in Ontario are required to ensure that every person involved in the sale, sampling, or delivery of liquor, or a person involved in taking orders for the sale of liquor and security staff hold a valid certificate demonstrating that they’ve successfully completed a liquor training course approved by the AGCO.

Q. What training programs are available to me?

A: Currently, Smart Serve is the only AGCO Board-approved training program in Ontario and will remain an approved program for the broader liquor sector, including for liquor sales licensees and their employees.  Individuals who hold a valid Smart Serve training certificate can sell, serve and deliver liquor in Ontario, including in retail settings.

The AGCO Board is seeking to approve additional training programs that are dedicated to the responsible retail sale of liquor and has launched an open call for liquor retail training programs.  Once approved, these additional training programs will also be made available to any person who is required to hold a valid training certificate.

Q. Are there any municipal or business requirements for my store?

A: Retailers should check with their local municipality to ensure that their premises meets municipal requirements for operating as a licensed convenience or grocery store.

Q. Can my store be located near an existing LCBO, an LCBO Convenience Outlet (LCO) or a Beer Store?

A: Yes, there are no restrictions as to where a retail store can be located, with the exception of requirements specific to First Nations reserves.  

Q. My store shares space with a quick service restaurant.  Do we qualify for a licence?

A: Retail stores that share space with a quick service restaurant or similar business may be eligible for a retail licence if they meet all eligibility and compliance criteria and requirements, including:

• The square footage of the retail floor space,
• The retail floor space being fully enclosed by walls,
• The amount of retail floor space occupied by food products offered for retail sale (excluding prepared food products that may be consumed on site), and
• The variety of food products offered.

Q. Can a retailer offer loyalty programs to customers purchasing liquor?  Can rewards collected through a loyalty program be applied to the purchase of liquor?

A: Yes, licensees may issue loyalty or rewards points on the purchase of liquor, as long as they are applied equally to all beer, wine (including cider), and ready-to-drink (RTD) beverage products.  Beginning September 5, 2024, licensees may accept benefits given to customers under a loyalty program or rewards marketing program as full or partial payment for liquor.

Beginning September 5, 2024, in order for benefits issued under a loyalty or rewards marketing program to be used for the purchase of liquor, the program must satisfy the following requirements:

1. Rewards for the purchase of alcohol and reward redemptions that include alcohol are not to be subject to special offers or bonuses, and
2. The operator of the program cannot directly or indirectly receive a financial or monetary benefit from a liquor manufacturer or a person acting on behalf of the manufacturer.

A licensee cannot offer free or discounted merchandise that is dependent on the purchase of liquor.

Q. Can I buy liquor from manufacturers or other wholesalers?

A: No. Licensees must purchase all liquor from the Liquor Control Board of Ontario (LCBO). The purchase must be made through your Master Supply Agreement and licensees must comply with all terms and conditions relating to the sale.  The LCBO is the sole wholesaler of record for all beverage alcohol products sold to licensed convenience and grocery stores.

If you have questions about product, ordering and distribution, please contact the LCBO at groceryandconvenience@lcbo.com.

Q. Can I sell liquor to other licensees?

A: No. Convenience store and grocery store licensees must purchase all liquor from the LCBO.  Other licensees, such as those that operate a liquor consumption premises (e.g. restaurants or bars) can only purchase liquor from the LCBO, The Beer Store, or an AGCO licensed manufacturer, where permitted.

Q. What is the Ontario Deposit Return Program?

A: The Ontario Deposit Return Program (ODRP) is the waste reduction and recycling program established by the Government of Ontario. It requires certain licensed stores to accept returns of eligible empty alcohol containers, provide refunds to customers of the deposits collected*, and comply with additional requirements. The ODRP is administered by the LCBO.  

*Consumers pay a refundable deposit on alcohol containers at the time of purchase. This deposit is 100% refunded when empty containers greater than 100 milliliters are returned to participating licensed stores. The LCBO reimburses participating stores for amounts refunded to the customer.  

Q. Do I need to collect bottles at my location if I am a convenience store?

A: No, however, you will need to post clearly in your store signage indicating the closest place or places where empty containers can be returned. For additional information on collection requirements and exceptions, please contact the LCBO at groceryandconvenience@lcbo.com.

Q. When do I have to start collecting and processing deposit returns of empty containers?

A: Starting October 31, 2024, grocery store licence holders (i.e., not convenience stores) will be required to accept eligible empty alcohol containers, refund deposits to customers, and meet some additional program requirements. The LCBO will reimburse the grocery store licence holder for amounts refunded to the customer. 

There is one exemption: if your grocery store is within a 5-kilometer radius of a retail store operated by the Brewers Retail Inc. (i.e. The Beer Store) on September 3, 2024, you will be exempt until January 1, 2026.  All exempt grocery stores must post signage identifying the closest place(s) to return containers in accordance with requirements set by LCBO.

The LCBO will contact you if you will be required to accept empty containers starting October 31, 2024 or if you are exempt and required to post signage (this signage will be provided to you and available on the relevant website).