Big grocery wants Ontario to lift ban on ‘private label’ wine, beer

Premier Doug Ford is considering a major overhaul of Ontario’s alcohol retail system, with the possibility of allowing supermarket chains to sell their own private-label wine and beer. This move could potentially include popular brands like Costco’s Kirkland Signature line.

Recent consultations with industry stakeholders have sparked discussions about lifting the ban on supermarkets selling their own alcohol brands. Currently, provincial regulations prohibit grocery stores from selling any beer or wine in which they have a financial interest. However, big grocery chains are pushing for this restriction to be lifted to increase competition and offer customers more choices.

Small wineries in Ontario have expressed concerns about the potential impact of allowing private-label alcohol sales in supermarkets. Michelle Wasylyshen, president and CEO of Ontario Craft Wineries, believes that this move could harm the local wine industry by overshadowing locally-produced wines with big supermarket chains’ private-label products.

While Ontario considers this reform, it’s worth noting that British Columbia, another major wine-producing province in Canada, also bans supermarkets from selling their own brands of alcohol. The Retail Council of Canada, representing major supermarket chains like Costco, Loblaws, Walmart, and Sobeys, argues that private-label sales could benefit consumers by lowering prices and creating more competition in the market.

However, the government’s current focus remains on supporting Ontario growers and promoting locally-made products. Grace Lee, Ford’s director of media relations, emphasized that their priority is to prioritize Ontario-made products over private-label sales.

This potential reform comes on the heels of Ford’s decision to expedite the timeline for convenience stores to sell alcohol, a move that has incurred costs of over $612 million. The government is also facing pressure from the Retail Council and the Canadian Federation of Independent Grocers to make further changes to the province’s alcohol retail system, including allowing private-label sales.

As discussions continue, it is essential to strike a balance between supporting local producers and providing consumers with more choices and competitive pricing. The future of Ontario’s alcohol retail landscape remains uncertain, but the government’s commitment to modernizing the system is clear.