Guide for Grocery Store and Convenience Store Licensees: Advertising and Inducements

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If you do not hold a Grocery Store or Convenience Store Licence, this Guide is not intended to address your obligations or requirements and you should refer to the Registrar’s Guidelines for Advertising and Promotion as contained under Registrar’s Interim Standards and Requirements for Liquor. 

Introduction

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, sets out the legal framework for the AGCO to licence and regulate sale and service of beverage alcohol in Ontario.

All licensees with a Grocery Store Licence or a Convenience Store Licence who advertise or promote beverage alcohol in Ontario are required under section 29 of the LLCA to only advertise beverage alcohol in accordance with the LLCA’s regulations and the standards and requirements established by the AGCO Registrar. The LLCA, its regulations and the standards and requirements applicable to Grocery Store and Convenience Store Licence holders are available on the AGCO’s website.

All Grocery Store and Convenience Store licensees must comply with the requirements around advertising and promotions as contained in the Registrar’s Standards for Grocery and Convenience Stores (AGCO Standards). The purpose of this Guide is to help Grocery Store and Convenience Store licensees understand what they can advertise and how they can advertise beer, wine, cider, and/or ready-to-drink (RTD) beverages in Ontario.

This Guide is not a replacement for the requirements of the LLCA and its regulations, nor is it a substitute for AGCO standards and requirements established under the Registrar’s authority. When selling beverage alcohol as a Grocery Store or Convenience Store licence holder, it is your responsibility to ensure that all of your advertising activities and content—whether conducted by you or on your behalf (such as through a marketing company) or by those that you have endorsed/supported, are compliant with the LLCA, its regulations and the AGCO Standards. Advertising includes any public notice, representation, or promotional and marketing activities that call attention to beverage alcohol, the brand names of beverage alcohol, and premises where beverage alcohol is available. Advertising content may include, but is not limited to text, graphics, lyrics, scripts, background music, and voice inflections.  

Please note that this information does not replace legal advice and all examples are provided for illustrative purposes only. Grocery and convenience store licensees wishing to conduct advertising may wish to seek independent legal advice. 
This Guide may be updated periodically to reflect changes to the LLCA and AGCO’s standards and requirements.  

Please note that until September 5, 2024, there are conditions that are applicable to Grocery Store licensees who are advertising and promoting beverage alcohol products:

Table of Contents

What Can You Advertise?

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. The price of a beverage alcohol product cannot be discounted below the uniform price set by the LCBO until September 5, 2024, after which Grocery Store and Convenience Store licensees can set their own prices.  
  • 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.

How Can You Advertise?

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+).

Who Pays for the Advertising?

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.

Relationships with Beverage Alcohol Manufacturers

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.

Enforcement of Advertising and Inducement Requirements

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.

Frequently Asked Questions

What Can You Advertise?

Can I announce that my store is selling beverage alcohol?

Yes, Grocery Store and Convenience Store licensees can use a variety of methods to announce the sale of beverage alcohol in their store.

For example, a store may put up a sign or create an advertisement stating, “Now available: a wide selection of beers, wines, ciders, and ready-to-drink cocktails.”

Can I advertise all the different brands of beverage alcohol I have available in my store?

Yes, you can advertise the brands of beverage alcohol that are available for sale in your store. However, you may not request, demand or receive monetary or non-monetary benefits from a beverage alcohol manufacturer for advertising specific brands.

For example, a store might feature an advertisement that states “New summer flavors from XYZ manufacturer, now in stock!”  or “We are pleased to offer X Brand of RTD for sale!”

Can I mention a beverage alcohol manufacturer's name or brands in my advertising?

Yes, you are permitted to mention manufacturers' names or brand names in your advertising.

Can I advertise the price of beer, wine, cider or RTDs in my store?

Yes, Grocery Store and Convenience Store licensees may advertise the prices of beverage alcohol sold at their store, subject to the requirements and restrictions outlined in the LLCA, its regulations and the AGCO Standards.

For example, a store may advertise the price of beverage alcohol in its flyers displaying the beverage alcohol product and its price. However, it is not permissible to advertise the sale of a beer product next to the image of a speeding car, which would fall under the restrictions of the AGCO Standards on depicting beverage alcohol with motorized vehicles. 

Can I advertise a limited-time promotion for a specific type of wine that I want to highlight in my store?  

Yes, limited-time promotions can be advertised for a specific brand of beverage alcohol, subject to minimum pricing requirements under the LLCA's Minimum Pricing Regulation. Until September 5, 2024, limited-time promotions will also be subject to the LCBO's uniform pricing requirements.  

Can I cross-promote beer with food like nachos or other snacks in my store?

Yes, cross promotion of beverage alcohol with non-beverage alcohol products is permitted in your store. However, you would not be able to advertise an offer that would require the customer to buy the pack of beer to receive, for example, a free bag of nachos or discounted price on snacks. Licensees cannot display in their store, for the purpose of cross-promotion with beverage alcohol, energy drinks or products that promote the immoderate consumption of beverage alcohol in close proximity to beverage alcohol.  

Can I advertise non-alcoholic beer and merchandise that is related to non-alcoholic beer in my store?

Yes, if a non-alcoholic beer product has an alcohol by volume of 0.5 of 1% or an alcohol by weight of 0.4 of 1% or less, LLCA requirements would not apply and the products and related merchandise can be advertised, subject to any other applicable advertising requirements.

Can I advertise the use of loyalty and rewards programs to purchase beverage alcohol products?

Not yet.  Currently, you are not permitted to advertise the use of benefits from loyalty and rewards programs (such as coupons, tickets, points, and rewards) for the full or partial payment of beverage alcohol products until September 5, 2024.  

How Can You Advertise?

Can I place advertisements for the sale of beverage alcohol in my store on a digital video game streaming platform that may appeal to teenagers?  

No. Under the AGCO Standards, you cannot place advertisements regarding beverage alcohol in media that is targeted specifically to persons under the legal drinking age.

Can I use social media platforms to advertise what types of beverage alcohol I'm selling in my store?

Yes. The use of social media is permissible for advertising beverage alcohol products that you are selling in your store. You must ensure that the advertisement is not placed on media platforms that is targeted specifically at persons under the legal drinking age, and you must ensure that the advertisement adheres to the requirements in the AGCO Standards. A potential practice to comply is to advertise on sites or pages that restrict access based on a user's age.

Can I put up posters and aisle markers in my store that advertise the types and prices of the beverage alcohol I'm selling in my store?  

Yes, signage can be used in your store to advertise beverage alcohol or indicate the sale of beverage alcohol as well as the price. Signage is subject to the requirements and restrictions outlined in the LLCA, its regulations and the AGCO Standards.

Can I enter into an agreement with a third-party marketing agency to install a television in my store which would play advertisements, including beverage alcohol advertisements, in return for payment?  

No.  While you can enter into an agreement with a third-party marketing agency for a television that plays advertisements, beverage alcohol advertising would not be permitted on the television since you would be receiving an indirect financial benefit from playing their advertising.

Relationships with Beverage Alcohol Manufacturers

A beverage alcohol manufacturer offered me some free posters that have their branding on them. Can I put these up in my store to advertise the product?

No. You cannot accept free posters from beverage alcohol manufacturers, as these items are non-monetary benefits which are prohibited under regulation.

A beverage alcohol manufacturer who delivers products to my store offered to give me a fridge for free, or at least at a discount, if I agree to promoting their products. Can I accept the offer?

No. You cannot request, demand or receive a financial or non-monetary benefit from beverage alcohol manufacturers, such as items which can benefit your business but are not targeted to customers. Examples of such items include, but are not limited to:

  • Furniture;
  • Lighting;
  • Refrigeration equipment, including coolers;
  • Staff uniforms; and,
  • Renovations to premises.

I just bought a fridge with my own funds that has the same branding as some of the beverage alcohol products in my store. Can I use this fridge to store beverage alcohol product that I am offering for sale?

Yes, you may use any equipment, including equipment with branding, if you have purchased it yourself. Remember that if you purchase equipment from a beverage alcohol manufacturer you are forbidden from directly or indirectly requesting, demanding or receiving a monetary or non-monetary benefit from a beverage alcohol manufacturer.  You cannot enter into an agreement with or request, demand or receive a benefit from a beverage alcohol manufacturer in exchange for exclusively stocking their products in a fridge / cooler with their branding on it.

Questions / Comments

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).