Convenience stores are calling on Ontario Premier Doug Ford to follow through on a promise to allow them to sell beer, a promise derailed three years ago after failed talks with the multinational brewing companies behind the province’s Beer Store chain. Mr. Ford’s promise to allow beer and wine sales at corner stores, never mentioned in his recent re-election campaign, was a centerpiece when he was first elected in 2018 and a frequent talking point for much of his first year in office. . But it was soon abandoned after the government warned the move could cost it $1 billion in penalties for breaching a 10-year deal the Beer Store signed in 2015 with the previous Liberal government that allowed sales in grocery stores but otherwise kept the chain of the chain. partial retail monopoly. Now, with the Progressive Conservative Government in a larger majority for the next four years, the convenience store industry is eyeing the 2025 expiration date of that deal, which could end the Beer Store’s dominance. In order to amend or cancel the deal, the government must give notice by the autumn of 2023 – meaning the new rules for beer sales are now up for debate. Some in the convenience store industry even hope that at least the beer could be on their shelves within a year, perhaps before the Beer Store agreement expires, as has long been the case in neighboring Quebec and New York State. Kenny Shim, board chairman for the Ontario Convenience Stores Association and president of the Ontario Korean Businessmen’s Association, which represents 900 convenience store members, said he spoke with Mr. Ford about two weeks before the election and the premier assured him the right to sell beer came. “Typically they tend to listen to you more right before an election,” said Mr. Sim, who runs the Busy Bee grocery store on King Street West in Toronto. “He was even more enthusiastic about starting with craft beer that’s local, at a comfort level.” Back in 2019, after facing the warning of $1 billion in penalties, Mr Ford’s government passed – but never enacted – legislation that would have scrapped the Beer Store deal and sought to cancel any obligation to compensate the retailer’s multinational owners. The US Chamber of Commerce warned that the legislation would make it easier to do business in Ontario. While talks with the Beer Store failed, the government trumpeted its move to allow more grocers to sell beer under the terms of the existing agreement. But later, during the pandemic, the province gave ailing restaurants and bars the right to sell takeout alcohol, creating thousands more places to buy beer. Emily Hogeveen, a spokeswoman for current Finance Minister Peter Bethlenfalvy — whose portfolio includes alcohol regulations — said in an email that the government “supports meaningful change in alcohol sales in Ontario.” He said this is “one of many priorities for the government and we look forward to continuing to provide Ontarians with choices and new opportunities for business.” In a statement, Ted Moroz, chairman of the Beer Store – which is largely owned by foreign-controlled brewers Molson Coors, Labatt and Sleeman – had little to say about the future of the deal with Queen’s Park, known as the Master Framework Agreement (MFA). “We have nothing new to share at this time regarding the Foreign Office’s negotiations with the government, which have understandably been on hold during the pandemic,” he said. Dave Bryans, chief executive of the Ontario Convenience Stores Association, said the legalization of alcohol during the pandemic has resulted in the proliferation of “bottle stores” that offer food items to act as de facto liquor stores. He also said beer sales are necessary to revive his ailing industry, which faces a long-term decline in tobacco sales. “I think if I were the owner of the Beer Store, I would find a transition and exit strategy, sooner rather than later,” Mr. Bryans said, adding that he would support a minimum requirement for sales of local craft beer. The Convenience Industry Council of Canada (CICC), a country-wide lobby group, has commissioned an economic impact report that says allowing the sale of alcohol at corner stores in Ontario would create more than 7,500 new part-time and full-time jobs and provide more of $115-million in new tax revenue for Ontario, while increasing liquor sales by 3% to 5% annually in the province. Anne Kothawala, president and CEO of CICC, called the projected increase in sales modest, amounting to a few drinks per person per year. Her team, she said, remained quiet during the recent provincial election campaign, but now hopes to push the issue. “We know consumers want it. The government promised it. Ontario’s convenience stores are ready,” he said. “And as we say, in the words of Premier Ford, let’s do it.” The industry has long awaited the change. Ian White, senior vice president of Parkland Corp., which operates the On the Run chain of convenience gas stations, says his retailers are already expanding their refrigerator space to accommodate future beer sales. He also said the industry has shown it can enforce age restrictions with its track record of selling tobacco. “We have training, we have procedures,” Mr White said. “We’ve been doing it for decades.” Our Morning Update and Afternoon Update newsletters are written by Globe editors, giving you a concise summary of the day’s most important headlines. Sign up today.
