Marketplace changes may cause cost of alcohol in Ontario to rise in new year

Changes in the Ontario marketplace could lead to higher alcohol prices in the new year.

If prices do go up, it’ll mostly be noticed in restaurants, bars and convenience stores.

That’s because a temporary increase to a wholesale discount with the LCBO is going to end on Dec. 31 which means customers may have to absorb those costs.

Right now, the discount sits at 15 per cent after going up in the spring when the trade war began.

But, that discount is going back down to 10 per cent.

READ MORE: Canada’s grocery code of conduct begins in January, experts say prices will keep rising

Both Restaurants Canada and the Convenience Industry Council of Canada says it’s possible some prices could go up.

Businesses are now waiting to see what a new cost structure will look like in the new year with the LCBO as the main wholesaler and responsible for setting prices.

“January is a tough time of year, you don’t have as much money after the holidays, you’re trying to get people to come in but it doesn’t always work,”  said Jack Williams, bar manager of The Ship in Hamilton. 

“We’re a craft beer bar, people expect to pay a little bit more for a craft beer, but nobody likes an expensive beer, “ Williams said. “We’re going to try and keep our prices the same, if not lower — but it’s hard, you have to do deals, people want happy hours, that sort of thing.”

The province says it has delayed the start of a new pricing system until April after initially being planned to start Jan. 1.

Outside a liquor store in Waterdown, opinions on the new measures were mixed.

“I think we’re actually going to drink more at home, I find more people are staying in and drinking inside,” said one local shopper.

“Go to discounted beer or wine, you know, because it’s very expensive out here right now,” said another. 

Another factor playing into the possible price increase is the empties recycling program.

The Beer Store will continue to be responsible for the deposit return program with grocers footing the bill and consumers likely seeing costs go up there as well.

WATCH MORE: Premier Ford says he ‘can’t’ put U.S. alcohol back on LCBO shelves