Announcing the Sale of Beverage alcohol

• Grocery Store and Convenience Store licensees can advertise to the public that they have a licence to sell beer, wine, cider, and ready-to-drink beverages.

Promoting Brands of Beverage Alcohol that are being sold at the Licensee’s Store 

• Grocery Store and Convenience Store licensees can advertise the brands of beer, wine, cider, and ready-to-drink beverages that are being sold in their store.

Advertising the Prices of Beverage Alcohol that are being sold at the Licensee’s Store

• Grocery Store and Convenience Store licensees can advertise the prices of beer, wine, cider, and ready-to-drink beverages that are sold in their store.
• Discounts, special promotional prices or seasonal discounts or ‘deals’ for beverage alcohol products can be advertised.
• Prices and discounts that are offered must be above the minimum retail price for each category and quantity of beverage alcohol , which is set out in the LLCA’s Licencing Regulation for wine and   Minimum Pricing of Liquor and Other Pricing Matters Regulation for other products. The LCBO has created a Minimum Retail Pricing Guide which can be referred to for the minimum retail price of products based on category and package size.

Promoting Beverage Alcohol with Non-Alcoholic Beverages or Food Items (e.g. Cross-Promotion)

• Grocery Store and Convenience Store licensees can advertise beer, wine, cider or ready-to-drink beverages with other non-alcoholic beverages or food items.
• Licensees cannot engage in promotions that require customers to purchase beverage alcohol products as a requirement or condition for getting free or discounted merchandise.
  
  However, licensees are allowed to offer manufacturers’ promotions to customers in which a value-added item may be included with a purchase of a beverage alcohol product, provided on the condition that the item is of a nominal value compared to the retail price of the beverage alcohol product. 
  
  Example: A licensee can accept a manufacturer’s promotional offer that would include a free hat with the purchase of a twelve pack of beer, as long as the hat is significantly cheaper in value than the retail price of the pack of beer it accompanies. 
• Grocery Store and Convenience Store licensees may not advertise beverage alcohol with, or display beverage alcohol in close proximity to, energy drinks or any other products that may promote the immoderate consumption of beverage alcohol.   
  
  Example: A flyer advertising the sale of beer should not show the beer next to a drinking game game kit (e.g. beer pong game kit), because it could encourage the irresponsible or over-consumption of beer. 

Using Public Service Advertising

• Grocery Store and Convenience Store licensees can advertise or promote the responsible use or sale of beer, wine, cider, or ready-to-drink products.
  • Public service advertising is any advertising that promotes the responsible use of beverage alcohol.
  • Public service advertising cannot contain any direct or indirect endorsement (e.g. encouragement, recommendation or suggestion) of beverage alcohol or beverage alcohol consumption.
  • Public service advertising is typically conducted by social responsibility groups. Licensees are allowed to accept and post such advertisements on their premises.

Grocery Store and Convenience Store licensees can conduct beverage alcohol advertising in physical and electronic formats. Examples of advertising methods can include:  

Physical Advertisements

• Posters and signage: items such as posters, aisle markers and banners.
• Point of sale displays: items such as end caps, counter displays and floor displays.
• Promotional materials: items such as handouts and flyers.

Electronic / Digital Advertisements

• Traditional media: television advertisements or video content, radio advertisements.  
• Digital advertising / social media: advertising on websites and social media platforms (e.g. Facebook, Instagram, X, and others).
• Retail website: if beverage alcohol is sold online through a licensee’s website or application, beverage alcohol advertisements must be contained only within the dedicated section of the website or application where beverage alcohol is being sold. Non-beverage alcohol products cannot be advertised or made available for purchase in that section of the website. Licensees must take reasonable measures (such as age gating) to effectively ensure that the dedicated section of the website, application or other electronic platform where beverage alcohol is purchased will be restricted to persons individuals above the legal drinking age (19+).

Grocery Store and Convenience Store licensees cannot demand that any of their advertising is paid for by beverage alcohol manufacturers. Licensees can pay for their own advertising and have advertising made on their behalf such as by franchisors or parent corporations. 

Licensees cannot directly or indirectly ask for/demand or receive marketing support, free promotional activities or other free services or merchandise from any beverage alcohol manufacturer or any person operating on a beverage alcohol manufacturer’s behalf.

Some examples of what is not acceptable include:

Example 1: A licensee cannot ask a beverage alcohol manufacturer or to fund their advertising campaign in a newspaper. 

Example 2: A licensee cannot accept or be given any kind of refrigerator, including one with branding on it, for free from a beverage alcohol manufacturer.

Some examples of what is acceptable include:

Example 1: A licensee pays the local newspaper to run an advertisement describing the types of beverage alcohol products, including brands, available in their retail store. A licensee who is a franchisee can also have a franchisor run an advertisement on their behalf.

Example 2: A licensee can pay full price and buy a refrigerator with branding on it from a beverage alcohol manufacturer.

Grocery Store and Convenience Store licensees are permitted to work with beverage alcohol manufacturers when advertising and promoting beverage alcohol products in their stores. However, licensees are not allowed to accept any kind of benefit or inducements (sometimes referred to as trade spend) from a beverage alcohol manufacturer or a person acting on behalf of a beverage alcohol manufacturer.  A ‘benefit’ could be financial/monetary or non-financial (e.g., a fridge) – in both cases these benefits are not allowed.

Grocery Store and Convenience Store licensees are also prohibited from requesting any kind of benefit or inducements / trade spend from a beverage alcohol manufacturer. This includes things  such as demanding that a manufacturer pay for their advertising or asking a manufacturer or supplier to pay any kind of fee for preferential access to the licensee’s shelf space.

Restrictions on Inducements / Trade Spend

An inducement can include money, benefits or services from a manufacturer to a licensee.

 Examples of prohibited/forbidden inducements or trade spend include, but are not limited to:

• Monetary Benefits: Compensation from manufacturers for discounts, rebates or promotional funds.
• Exclusivity: Restricting sales of the manufacturer’s products to only their store in return for any kind of benefit from that manufacturer.
• Shelf Space: Giving the manufacturer’s products special or exclusive placement in their store in return for some kind of benefit from that manufacturer.
• Product Listings: Requiring or accepting payment for the purpose of including the manufacturer’s products in their inventory.
• Promotional Activities: Receiving compensation from a manufacturer for merchandising, marketing or promotional activities (including loyalty programs or reward marketing programs which are receiving direct or indirect monetary benefits from a beverage alcohol manufacturer).
• Physical Improvements: Receiving financial or other support from a manufacturer to complete renovations to a licensee’s store, lighting, furniture etc.
• Equipment: Receiving refrigeration equipment, including coolers, or other equipment for free from a manufacturer, or sold by a manufacturer with conditions related to the sale of their products (such as exclusivity) in the store.
• Services: Stocking products on shelves for the licensee.

Grocery Store and Convenience Store licensees may work with beverage alcohol manufacturers or the Brewers Retail Inc. to assist what types of products they would like to order, including categories and planning for future orders, only if all or any of these services are provided by the manufacturer for free.

The AGCO engages with licensees through proactive inspections, complaints and targeted audits. If advertising and promotional practices, including inducements, that are found to be in violation of the LLCA, its regulations and/or AGCO Standards, the AGCO may take various actions, including providing education to the licensee and more serious measures such as issuing fines or revoking a licence.

For more information or questions about advertising and promotions, please contact AGCO Customer Service at 416-326-8700 or 1-800-522-2876 (toll-free in Ontario).