Grocery Stores: Owners/Licensees
The Alcohol and Gaming Commission of Ontario (“AGCO”) is responsible for administering the Liquor Licence and Control Act, 2019 (“LLCA”) which together with its regulations and the standards and requirements established by the AGCO Registrar, are the licensing and regulatory regime for most aspects relating to the sale and service of liquor in Ontario.
Among its regulatory activities in the liquor sector, the AGCO is responsible for licensing eligible grocery stores to sell beer, wine (including cider) and ready-to-drink beverages and ensuring that these products are sold responsibly and in accordance with the law.
On August 1, 2024, currently licensed grocery stores will be able to sell ready-to-drink beverages and large pack sizes of beer.
After October 31, 2024, all eligible grocery and big-box stores will be able to sell beer, cider, wine and ready-to-drink beverages, including large pack sizes.
This guide provides information about the Grocery Store Licence (“Licence”) which gives licensees the ability to sell beer, wine (including cider) and ready-to-drink beverages in grocery stores operated by the licensee, as well as to deliver liquor for a fee from that grocery store.
As a reminder, as defined in Ontario Regulation 746/21, a grocery store has more than 4000 square feet of retail space, with at least 10,000 square feet or half the space dedicated to food products. It offers a wide variety of food items such as canned and dry goods, frozen foods, fresh produce, meat or meat alternatives, dairy or dairy alternatives, non-alcoholic beverages, baked goods and snack foods.
Grocery store licensees can apply for a Wine Boutique Sales Agent endorsement, in addition to their Grocery Store Licence, which allows them to have a wine boutique inside the shopping area of their grocery store. Additional requirements apply for existing grocers with a wine boutique sales agent endorsement, or grocers with an off-site winery retail store located at the grocery store.
This guide also provides information about regulatory obligations as a grocery store licensee. Please note that this guide does not replace the legislation. Please consult the LLCA, its regulations and the standards and requirements established by the AGCO Registrar to ensure understandings of all the regulatory obligations that come with holding a Grocery Store Licence. Licensees may also wish to consult with a legal advisor.