Toronto Star

Toast the new year with grocery store beer

Up to 60 stores, including independen­t grocers, may have suds by December’s end

- ROBERT BENZIE

It’s brews you can use.

Loblaws, Walmart, Sobeys, Metro and a slew of independen­t grocers will be the first supermarke­ts allowed to sell beer in Ontario.

Finance Minister Charles Sousa announced Wednesday that up to 60 grocery store locations could be authorized to sell beer by the end of next month.

“We are moving quickly to ensure that beer will be sold in grocery stores in a socially responsibl­e manner,” said Sousa.

“Using the existing low-cost distributi­on system keeps Ontario’s beer prices below the Canadian average while offering greater ability to fund key government services and programs that people rely on,” he said.

Winning bidders in the licence auction also include: Farm Boy, Galleria Supermarke­t, Hanahreum Mart, La Mantia’s Country Market, Longo’s, Michael-Angelo’s Market Place, Pino’s Get Fresh and Starsky Fine Foods.

A visibly pleased Sousa said it was “very surprising (that) we had many small independen­ts that bid.

“It’s broadly held and it’s across the province,” he said of the reforms, which followed a series of Star stories on the monopolist­ic nature of beer retailing in the province.

Progressiv­e Conservati­ve Leader Patrick Brown said his party backs the liberaliza­tion of beer sales in Ontario.

“I support greater market access. I’m supporting the government on this at this point,” said Brown. But NDP Leader Andrea Horwath expressed concern that unionized workers at the 650 government­owned Liquor Control Board of Ontario outlets and 448 Beer Stores could be affected.

“We want to make sure that we don’t simply bring more precarious work into Ontario, so Walmart jobs are not a good replacemen­t for wellpaying decent jobs in that sector right now,” said Horwath.

The retailers still have some bureaucrat­ic hurdles before they can begin selling six-packs on shelves — they have to make applicatio­ns to the Alcohol and Gaming Commission of Ontario (AGCO) for licences.

None of the firms are allowed to discuss the auction process until the end of the year “to ensure fairness,” the government said in a statement.

By May 2017, there will be150 Ontario supermarke­ts selling beer, eventually rising to a maximum 450 of the province’s 1,500 grocery stores.

In the first wave of 60 stores, 48 licences were auctioned off to large grocers, while a dozen were reserved for small independen­t markets.

Of those 60, 25 are in the Greater Toronto Area, 16 in southweste­rn Ontario,13 in eastern Ontario and six in the north.

Precise locations will not be known until the AGCO licensing process is completed in the next few weeks.

The changes are a huge victory for Ontario’s craft brewers, which will gain more access to shelves in all stores that sell ales and lagers, including the Beer Store, which is owned by the foreign parent companies of Labatt, Molson and Sleeman and has enjoyed a virtual monopoly since Prohibitio­n ended in 1927.

Ed Clark, the premier’s privatizat­ion czar who ushered in the reforms to allow supermarke­t beer sales, is currently working on also getting wine on supermarke­t shelves.

But that is even more complicate­d because the existing privately owned kiosks operating inside many supermarke­ts have grandfathe­red licences exempt from trade agreements.

 ?? DANIEL ACKER/BLOOMBERG NEWS ?? By May 2017, there will be 150 Ontario supermarke­ts selling beer, eventually rising to 450 stores.
DANIEL ACKER/BLOOMBERG NEWS By May 2017, there will be 150 Ontario supermarke­ts selling beer, eventually rising to 450 stores.

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