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Ontario’s craft distilleries want a level playing field. Despite booming sales, distillers say the province’s prohibition like stance on liquor is making it difficult for distillery start-ups. They’re asking Ontario to be treated the same as wineries and breweries.
Current laws allow breweries and wineries to keep a larger portion of what they sell at their store fronts but distilleries are getting the short end of the stick. There are currently 6 craft distillers in Ontario, including Dillon’s Distillery and Sippery in Beamsville. They currently have 4 spirits available at the LCBO with 2 more slated for store shelves in the coming months.
A bottle of whisky at Toronto distillery costs $26.85. Of that, the LCBO gets $12.44, the Federal government gets $3.50 and about $3.07 goes to HST. Leaving the distillery with just under $8.
Another problem craft distillers face, not being able to sell drinks to customers on-site, which are allowed at both breweries and wineries. Ontario law also forces small distilleries to ship their products to the LCBO for distribution to restaurants and bars, but small breweries and wineries can deliver them directly.
But spirits are very profitable for the LCBO, they accounted for about $2 billion in net sales last year. They earn nearly 60 cents for every dollar of spirit sold, compared to just 39 cents for every dollar spent on beer.
