Wednesday, September 2, 2020

In light of recent regulatory changes to help businesses during the COVID-19 pandemic, the Alcohol and Gaming Commission of Ontario (AGCO) would like to clarify certain rules around the sale of liquor to ensure a common and clear understanding among liquor sales licensees and licensed manufacturers.

Liquor Sales Licensees

As of March 26, 2020, liquor sales licensees are permitted to sell liquor for takeout or delivery along with food. Licensees may only sell liquor to the public in two scenarios: for on-site consumption and for off-site consumption with a food order for takeout or delivery.

Whether the sale of liquor is for on-site or off-site consumption, licensees may only sell liquor that was bought on the licence through the LCBO, The Beer Store, or from an AGCO licensed manufacturer (winery, brewery, distillery) where permitted by the LCBO.

Liquor sales licensees are permitted to use third party agents such as delivery companies and rapid delivery businesses to facilitate the sale and delivery of a liquor and food order.

Liquor sales licensees are generally prohibited from having an agreement, arrangement or association with a liquor manufacturer such that they would be likely to promote the sale of liquor of that manufacturer. For example, a liquor sales licensee and a liquor manufacturer may not have an arrangement where the manufacturer is offering the sale of their own liquor product as part of the takeout or delivery offerings of a licensed establishment.

Liquor Manufacturers

Licensed manufacturers (wineries, breweries, and distilleries) with a retail store authorization from the AGCO may sell their products directly to consumers at authorized locations. They may also sell their products through their own online retail store, as an extension of their physical retail store.

Manufacturers who do not have a retail store authorization from the AGCO are not permitted to sell directly to consumers, including via online sales, or through any arrangement with a liquor sales licensee.

Manufacturers that do not have a retail store authorization from the AGCO are generally only permitted to sell their product through the LCBO or The Beer Store.

In certain cases, where permitted by the LCBO, manufacturers may direct deliver to liquor sales licensees. Please refer to the LCBO’s trade website for more information on how to apply for an authorization to direct deliver to licensees, report sales and remit appropriate mark-ups and fees on those sales.

For More Information

Information Bulletin: Liquor sales licensees may now sell liquor for takeout or delivery along with food 

AGCO Customer Service
Telephone: 416-326-8700
Toll free in Ontario: 1-800-522-2876
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