Compliance support for convenience and grocery stores

This page highlights some of the most important requirements that will help you and your staff sell alcohol responsibly.  

As a licensed grocery or convenience store, you are responsible for complying with all applicable laws, regulations and standards. Refer to the full list on our Standards, Acts and Regulations page.  

The following guides are available to help you understand your responsibilities: 

• Convenience Store Licence Obligation Guide 
• Grocery Store Licence Obligation Guide  
• Guide for Grocery Store and Convenience Store Licensees: Advertising and Inducements 

Note: these documents may be updated periodically to reflect changes in applicable laws. To ensure you have the most current information, refer to the Standards, regulations and legislation and revisit this page for updates. 

Watch this video on becoming a licensed alcohol retailer in Ontario

Becoming a licensed alcohol retailer in Ontario.

When the AGCO inspects your store, we first look to make sure you are addressing the following areas of highest risks. 

Ensure your staff are ready

You must ensure that any individual who sells, offers for sale, delivers, or handles liquor or provides samples (grocery only) of liquor is at least 18 years of age. These staff members must hold a valid certificate demonstrating the successful completion of a training course approved by the AGCO’s Board.

For a full list of training programs and to learn more about your training requirements, visit the Responsible liquor sale, service and delivery training page.  
 

Do not sell alcohol to minors  

The legal drinking age in the province of Ontario is 19 years of age. You may not sell alcohol to people who are under 19 years of age. By law, you are required to check a person’s ID if they appear to be under the legal drinking age.  

Here are some important tips for checking IDs:  

• Carefully examine the ID. Check the photo and compare it to the person standing in front of you.  
• Check the birth date, and expiry date. 

Read this page on checking ID for information on valid IDs and tips on how to spot a fake ID.

Do not sell alcohol to intoxicated customers 

You may not sell alcohol to a person who is, or appears to be, intoxicated. A customer exhibiting signs of intoxication must be refused the sale of alcohol. Learn more about recognizing the signs of intoxication.  

Hours of sale 

You may sell or allow for in-store or curbside pickup of alcohol only between 7:00 a.m. to 11:00 p.m., seven days a week (including holidays, if your store is permitted to be open). However, deliveries of alcohol are only permitted between 9:00 a.m. and 11:00 p.m. You may only sell, allow in-store and curbside pickup, and perform deliveries within these hours, even if your store is open for longer (e.g. 24 hours).  

The AGCO may place conditions on some licences that further limit the hours during which alcohol may be sold. 

Selling, allowing for pickup or delivery of alcohol outside these hours could result in a monetary penalty up to $50,000 or the suspension or revocation of your licence.
 

Here are some important steps you will take to prepare your store and staff, and to sell alcohol responsibly.  

Post your licence and Sandy’s Law poster  

You must post your AGCO liquor retailer licence and the Sandy’s Law poster in a place that is visible to customers. Learn more about the Sandy’s Law signage requirement.  

When you work with the LCBO, they will support you in fulfilling your recycling signage requirement.

Keep clear records of purchases and sales

Keep the following records and make them available upon request by AGCO inspectors: 
 

Product purchases

Wholesale purchase of liquor from LCBO

Customer sales

Sales from in-store, online, and delivery/curbside (this could include sales invoices, cash register tapes, or receipts)

Read the Registrar’s Standards for Grocery Store and Convenience Store Licensees to learn more about your record keeping requirements.

Buy alcohol wholesale through the LCBO 

You will need to work with the LCBO to arrange for the purchase of liquor products that you sell under your licence. When we issue a new licence, we notify the LCBO and share your contact information with them. The LCBO will reach out to you to guide you through the process of ordering products.  

Wholesale products only  

You are only permitted to sell beverage alcohol products in your store that have been purchased through your business account with the LCBO. You cannot buy alcohol from an LCBO retail location and sell it at your store. Only products ordered and paid for through the LCBO’s online ordering system are allowed to be sold.   

If you have questions about products, or ordering and distribution, please direct them to the LCBO. Visit the LCBO’s website for businesses to learn more about working with the LCBO. 

Product offering is limited to beer, cider, wine and ready-to-drink beverages. Spirits may not be sold in a grocery or convenience store. 

You also cannot sell a brand of liquor that you (or your affiliates) have a direct or indirect financial interest in the brand or its trademark.

Displaying alcohol products  

Energy drinks should not be displayed alongside alcohol products and must be placed in a separate area of the store. 

On the shelf 

Alcohol on display must meet shelf space requirements related to the product display category.

• Beer: ≥20% of beer containers on display is beer produced by small breweries 
• Cider: ≥20% of cider containers on display is cider produced by small cideries
• Ready-to-drink beverages: ≥20% ready-to-drink beverage containers on display must be beverages produced by small breweries, small distilleries or small wineries 
• Wine: ≥10% of wine containers on display is produced by small wineries. Additionally:
  •  ≥40% of the wine on display is produced using grapes from a single country and at least one of the following: 
    1. the wine is quality assurance wine, 
    2. the wine was produced by a small winery, or 
    3. the country where the grapes were grown produces, in the aggregate, less than 150 million litres of wine annually from grapes grown in that country.  

Note: the LCBO will identify which alcohol products are produced by small manufacturers in their catalogue, including which wine products will meet display requirements.  

When an AGCO Inspector visits your store, they will: 

• count the number of front facing bottles / cans on display 
• count how many are from small manufacturers
• calculate the % small / craft of products from the total number of bottles / cans

Storing alcohol products 

Required:

• Alcohol inventory that is not on display  must be stored in a secure storage area somewhere on or off the premises that is not accessible to the public. You must let the AGCO know (via iAGCO) where you will store liquor if it isn’t at your retail location. Liquor can’t be stored in your home or any other dwelling. 
• Liquor that has been ordered for pick-up or delivery has to come from the store’s on-site inventory.

You decide:

• Whether coolers or storage areas need to be locked. 
• Whether to store alcohol warm or cold.   

Advertising 

All advertising must comply with the requirements outlined in the LLCA, its regulations and the Registrar’s Standards for Grocery and Convenience Stores. 

Here are some examples of what is permitted under the requirements. You may advertise:  

• That you have alcohol for sale 
• The brands you carry 
• Prices, including discounts or deals (always above the legal minimum price) 
• Inside and outside your store 
• Alcohol with food or non-alcoholic beverages (excluding energy drinks)  
• The responsible use of alcohol 

Here are some examples of what is not permitted under the requirements. Your advertising cannot:  

• Associate drinking with driving, or with any activity that requires care and skill or has elements of danger.  
• Appeal to minors. 
• Offer free or discounted merchandise that requires the purchase of alcohol

Learn more about advertising by reading the Guide for Grocery Store and Convenience Store Licensees: Advertising and Inducements. 

Inducements and relationships with liquor manufacturers 

You can work with liquor manufacturers on supply/demand planning, forecasting and category management related to  liquor products in your store so long as no party is paid for these services.

You are not allowed to directly or indirectly request, demand or receive a financial or non-monetary benefit in Ontario or in any other jurisdiction from a liquor manufacturer or from a person acting on the manufacturer’s behalf. 

 Here are some examples of what you cannot accept:

• Compensation or non-monetary benefits in exchange for things like: 
  • Advertising any specific brands 
  • Agreeing to carry a manufacturer’s products 
  • Exclusively carrying certain brands or products 
  • Offering special or exclusive placement on shelves 
• Free items or services for your business operations like, furniture, lighting, fridges, coolers, signage, staff uniforms, shelf stocking, and renovations.

Learn more about inducements and incentives by reading the Guide for Grocery Store and Convenience Store Licensees: Advertising and Inducements.  
 

Inspections 

The AGCO may inspect your location at any time. If we find anything of concern, an AGCO Inspector may work with you to help you solve the issue. Inspectors may look for compliance with the signage requirements (such as the Sandy’s Law poster), percentage of small manufacturers on display, product placement and other requirements that must be followed by a licensee.

You are required to let AGCO Inspectors access your business and conduct their inspections.  

Repeated or serious instances of non-compliance with your obligations may result in a verbal or written warning, a monetary penalty, or a suspension or revocation of your licence. 

Mystery shoppers 

We have a mystery shopper program where youthful-looking adult shoppers act like customers and try to buy liquor at licensed establishments. The program helps us evaluate how you and your staff are performing in meeting your regulatory responsibilities, particularly with respect to preventing youth access to age gated products.  

Learn more about the mystery shopper program.   

What happens when we find that you are not compliant 

The AGCO has a variety of actions we take to bring licensees back into compliance. The action we take may depend on the seriousness of the infraction and your compliance history.   

• Education
  Inspectors work with you to help you understand your obligations
• Warning
  A formal warning that your are not meeting your responsibilities
• Monetary penalty
  A financial consequence where you pay a defined amount
• Suspension
  Can't sell alcohol for a period of time
• Revocation
  Lose you licence and ability to sell alcohol

Learn more about:

• Monetary penalties 
• Hearings and appeals — alcohol

As a licence holder you are responsible for following all the requirements and obligations that apply to you. Read these resources to learn more about your responsibilities. 

Key documents for convenience and grocery store licensees 

• Convenience Store Obligation Guide
• Grocery Store Obligation Guide  
• Guide for Grocery Store and Convenience Store Licensees: Advertising and Inducements 
• Registrar’s Standards for Grocery and Convenience Stores   

General alcohol responsibilities and resources 

• Liquor Licence and Control Act, 2019 
• Licensing Regulation (746/21): Sets out the rules and conditions for licences, licence classes, and endorsements. 
• General Regulation (745/21): Sets out other requirements such as warning signs regarding alcohol consumption during pregnancy, and the Ontario Deposit Return Program. 
• Minimum Pricing of Liquor and Other Pricing Matters Regulation (750/21): Sets out the minimum retail pricing and loyalty program requirements. 

Printable resources:  

• Selling responsibly poster  
• Sandy’s Law Poster 

Other supports 

• AGCO/LCBO Joint Information Webinar for Convenience & Grocery Store Owners 
  • Watch the recording
  • View the AGCO/LCBO Information Webinar Slides 
  • Read the information webinar Q&As 
• Application Guide: Convenience Store Licence & Grocery Store Licence