Ontario has delivered the largest expansion of the beverage alcohol marketplace since the end of prohibition almost 100 years ago. This transformation has increased consumer choice and convenience and contributed to having a more competitive alcohol retail marketplace that supports Ontario businesses in over 6,600 licensed convenience and grocery stores throughout the province.
Undertaking Tax, Mark-Up and Red Tape Reductions
The government’s transformation of Ontario’s alcohol marketplace has introduced tax and mark-up reductions, including:
- Freezing beer tax and mark-up rate indexation since 2018 and extending this pause until March 1, 2028; and
- Simplifying and reducing the LCBO wholesale mark-ups by about $200 million and alcohol taxes by about $60 million, starting on April 1, 2026, to help support producers and retailers succeed in the expanded marketplace.
These measures complement several tax reductions announced in the 2025 Budget that were estimated to provide supports of approximately $155 million for 2026–27, including:
- Streamlining and reducing the LCBO mark-up rates for cider, spirits, and wine-based ready‑to‑drink (RTD) beverages, to provide between 21 per cent and 50 per cent in rate cuts;
- Supporting the competitiveness of smaller brewers with a 50 per cent reduction of the microbrewer basic tax and LCBO mark-up rates; and
- Reducing the basic spirits tax on on-site retail sales by Ontario distillers by 50 per cent.
This past summer, the government also introduced red tape reduction measures, including:
- Enabling an open listing process at the LCBO so that new products can be brought to the market in a timely manner; and
- Providing flexibility to eligible producers and retailers to manage their distribution systems more effectively.
These changes support a more dynamic and responsive marketplace.
Protecting the Canadian Club Brand Centre
The government is making changes to the licensing framework that would allow for the sale and sampling of whisky at the historic Canadian Club Brand Centre. These changes fulfil the government’s commitment to protect the centre, provide opportunities for increased visibility of Ontario products, and help support tourism and economic development in the Windsor area.