January 10, 2018 - The Alcohol and Gaming Commission of Ontario (AGCO) is continuing to support the government’s plan to modernize Ontario’s beverage alcohol industry. This has included regulatory efforts associated with the sale of wine, beer and cider in grocery stores, as well as authorizing the sale of VQA wine through wine boutiques located inside grocery stores.
As part of this process, the AGCO is continuing to ensure that certain fees related to the sale of beverage alcohol inside grocery stores accurately reflect regulatory costs.
Effective January 29, 2018, manufacturers who apply to sell VQA wine manufactured by another winery in their in-store boutiques will be required to pay a one-time $200 Supplementary Wine Authorization fee.
The fee is necessary to recover a portion of AGCO regulatory costs associated with the enhanced registration, licensing and compliance functions where wine is sold in boutiques inside of grocery stores.
Current manufacturers who have been authorized Boutique Owners / Operators by the AGCO for a given location, as well as those who have sought authorization prior to January 29, 2018 will not be required to pay the new fee.
In October 2016 the AGCO began accepting applications from eligible wineries to operate wine boutiques within grocery stores. These manufacturers were required to hold a current Retail Store Authorization to sell their wine products at that location.
In addition, an applicant winery must enter into a boutique agreement with the grocery store that holds a Wine Sales Authorization, under which:
- The winery agrees to lease or license a designated space in the shopping area of the grocery store in which to sell wine;
- The operator of the grocery store agrees to sell, as an agent of the winery, wine that is available for sale to the public in the leased or licensed space; and
- The initial terms of the lease or licence is for at least three years.
To date, the AGCO has authorized 53 in-store wine boutiques.
What it means to Wine Manufacturers and New Applicants
As of January 29, wineries that apply for a Supplementary Wine Authorization, or seek to move a boutique from one location to another, will be required to pay the one-time $200 fee.
In addition to the new fee, wine manufacturers will remain responsible for their Manufacturers Licence and Winery Retail Store Off-site store fees.
Apart from the new Supplementary Wine Authorization fee, the AGCO has not introduced any new fees to beer and wine manufacturers since the October 2016 introduction of wine sales in grocery stores.
Who do I contact for more information or help?
Call or email AGCO Customer Service:
General Telephone: 416-326-8700
Toll-Free in Ontario: 1-800-522-2876