The Ontario Government has made amendments to Ontario Regulation 746/21: Licencing of the Liquor Licence and Control Act, 2019 (LLCA) which are now in effect. To support Grocery Store licensees during this transition, the Alcohol and Gaming Commission of Ontario (AGCO) is introducing a fee waiver program for eligible licensees. This program will apply to their annual licensing fees.
Eligibility: Grocery Store licensees that have a Wine Boutique Sales Agent Endorsement on their licence (has entered into a Wine Boutique Agreement with the holder of an Offsite Winery Retail Store Licence to operate a Wine Boutique inside the shopping area of their grocery store).
Rebate Amount: The annual Grocery Store Licence fee of $3,250 will be fully waived for eligible licensees until December 31, 2036.
Existing Grocery Store Licensees (previously holders of a Beer and Cider Grocery Store Licence and holders of a Beer and Wine Grocery Store Licence) with a Wine Boutique Sales Agent Endorsement: The AGCO will contact existing Grocery Store Licence holders that have Wine Boutique Sales Agent endorsements in advance of your annual renewal. The fee waiver will be automatically applied prior to submitting your renewal.
If you’re an existing or prospective Grocery Store licensee and are interested in partnering with a winery to move its Offsite Winery Retail Store inside the shopping area of your grocery store (to become a “wine boutique” as defined in Ontario Regulation 746/21), please contact the AGCO’s Licensing and Registration branch at liquor.retail@agco.ca for more information.
Regulatory Amendments: The existing lease protections for offsite winery retail stores within grocery stores, along with the restrictions on product sales and the prohibition against issuing grocery store licenses in certain circumstances, have been extended for an additional five years. The new dates are as follows:
- Protection for Offsite Winery Retail Stores in Grocery Stores: If a grocery store has leased or licensed space to an offsite winery retail store, the lease or licence cannot be unilaterally terminated by the grocery store before January 1, 2037. Starting January 1, 2036, if the grocery store wants to unilaterally end the lease or licence, they must give the winery at least one year’s notice. The lease or licence can only be terminated before January 1, 2037, if the operator of the offsite winery retail store under the lease or licence is in default.
- Selling Wine in Grocery Stores with Existing Offsite Winery Retail Stores: If a grocery store has leased or licensed space to an offsite winery retail store since or after May 1, 2016, and is licensed to sell alcohol, it cannot sell wine (other than cider or ready-to-drink beverages) at its grocery store until January 1, 2036, unless:
- The sale of wine happens through the existing offsite winery retail store, or
- The grocery store was originally licensed to sell beer and wine before April 1, 2024.
- Selling Wine in Grocery Stores without Offsite Winery Retail Stores: If, on April 1, 2024, a grocery store had a licence to sell beer and cider but did not lease or licence space to an offsite winery retail store at its grocery store, it cannot sell wine (other than cider or ready-to-drink beverages) at its grocery store before January 1, 2036, unless it is sold through a wine boutique within the store.
- Licensing for New Grocery Stores with Existing Offsite Winery Retail Stores: If, on April 1, 2024, a grocery store leased or licensed space at the grocery store to an offsite winery retail store but did not itself have a licence to sell alcohol, the grocery store cannot obtain a Grocery Store Licence before January 1, 2036, unless there is an agreement in place to operate a Wine Boutique.
In addition, holders of an Offsite Winery Retail Store Licence will now be permitted to deliver for a fee wine from their wine boutiques directly to consumers.
For more information, please contact the AGCO anytime via the iAGCO online portal or call AGCO Customer Service Monday to Friday from 8:30 am to 5:00 pm at 416-326-8700 or toll-free at 1-800-522-2876.