Doing Business in Ontario

Ontario’s import-beer marketplace is a shared environment that is legislated by the Alcohol and Gaming Commission of Ontario (AGCO), and dominated by two major stakeholders:

The Liquor Control Board of Ontario (LCBO), a Crown Corporation that owns and oversees the distribution channels for its own monopoly retail chain, for restaurants and liquor license holders, and for grocery stores;

The Beer Store, a joint venture retail chain between three of Canada’s largest brewing companies; Molson Coors, Labatt and Sleeman. Operates an open-listing system that allows qualified domestic and international brewers to sell products through its Ontario network of 300+ stores. Listing and ongoing servicing fees apply to each product, with the applicable fee structure determined by the brewery’s combined annual worldwide production volume.

Suppliers and manufacturers from around the world must work with an Ontario agent to introduce their products to the Ontario market. An agency knows buyers, policies, regulations and marketing strategies and will help you navigate business opportunities smoothly. Agents may only canvass for, receive, take or solicit an order for the sale of liquor on behalf of a manufacturer but cannot sell liquor:

The LCBO permits a Supplier to appoint only one Agent to represent a specific product or product line. This appointed Agent is referred to as the “Agent of Record” and represents that product in all its package sizes, forms (e.g. bottles, cans, beer kegs, etc.) and the entire brand line for the product across all sales channels.