ontario regulation 78/26

made under the

Liquor Licence and Control Act, 2019

Made: March 26, 2026
Filed: March 30, 2026
Published on e-Laws: March 30, 2026
Published in The Ontario Gazette: April 18, 2026

Amending O. Reg. 746/21

(LICENSING)

1. Paragraph 1 of subsection 35 (3) of Ontario Regulation 746/21 is amended by striking out “only”.

2. Paragraph 4 of subsection 71 (1) of the Regulation is revoked and the following substituted:

4. For a fee, deliver liquor that is eligible to be sold in the grocery store from the grocery store or from a distribution centre or warehouse at which the licensee stores liquor.

3. Section 72 of the Regulation is amended by adding the following subsection:

(2) In addition to the authorized actions described in subsection (1), a holder of a convenience store licence who holds at least 20 convenience store licences, either alone or along with its affiliates, is authorized to deliver liquor for a fee from a distribution centre or warehouse at which the licensee stores liquor.

4. (1) Subsection 87 (1) of the Regulation is revoked and the following substituted:

Sales in grocery stores and convenience stores

(1) The licensee may not keep for sale or sell liquor unless the liquor was,

(a) purchased from the LCBO; or

(b) transferred to the licensed grocery store or convenience store from another licensed grocery store or convenience store in accordance with the conditions set out in subsection (6).

(1.1) The licensee must comply with all terms and conditions relating to the purchase of liquor from the LCBO.

(2) Subsection 87 (2) of the Regulation is amended by striking out “purchases” and substituting “purchases or is transferred”.

(3) Subsection 87 (6) of the Regulation is revoked and the following substituted:

(6) The conditions for the transfer of liquor referred to in clause (1) (b) are as follows:

1. The licences for both retail stores must be held by the same licensee, or by a licensee and an affiliate of the licensee, and the transfer of the liquor must be carried out or supervised by the licensee or, if applicable, the affiliate.

2. Neither of the licences may be under suspension, and no proposal to revoke or suspend either licence may have been issued.

3. The liquor that is to be transferred must have been previously purchased or transferred in accordance with subsections (1) and (1.1).

4. Before the liquor is transferred, the licensee or, if applicable, affiliate must give written notice of the transfer to the Registrar containing the information listed in the standards established by the Registrar within the time and in the form and manner specified by the Registrar.

5. No remuneration may be provided for the transferred liquor.

6. The liquor must be transferred in securely closed containers.

5. Subsection 88 (2) of the Regulation is revoked and the following substituted:

(2) If the holder of a grocery store licence permits customers to order liquor other than in person at the grocery store, the licensee must ensure that any liquor ordered is supplied from the licensee’s inventory that is stored either at the grocery store or at a distribution centre or warehouse at which the licensee stores liquor.

(2.1) If the holder of a convenience store licence permits customers to order liquor other than in person at the convenience store, the licensee must ensure that any liquor ordered is supplied from the licensee’s inventory that is stored,

(a) at the convenience store; or

(b) if the holder satisfies the condition in subsection 72 (2), at the convenience store or at a distribution centre or warehouse at which the licensee stores liquor.

6. Section 110 of the Regulation is revoked and the following substituted:

Classes of licences to deliver

110. (1) The following classes are established for a licence to deliver:

1. General delivery licence.

2. Affiliate delivery licence.

(2) A licence to deliver that was issued before the day section 7 of Ontario Regulation 78/26 came into force is continued as a general delivery licence.

7. The Regulation is amended by adding the following section:

Ineligibility Criteria

Affiliate delivery licences

111.1 An applicant is not eligible for an affiliate delivery licence unless,

(a) the applicant is affiliated with a holder of a grocery store licence or a convenience store licence that satisfies the condition in subsection 72 (2); and

(b) the applicant operates a business consisting primarily of the delivery, or the sale and delivery, of products that are available for sale at,

(i) a grocery store, in the case of an applicant who is affiliated with the holder of a grocery store licence, or

(ii) a convenience store, in the case of an applicant who is affiliated with the holder of a convenience store licence.

8. Section 112 of the Regulation is amended by striking out “licence to deliver” and substituting “general delivery licence”.

9. The Regulation is amended by adding the following sections:

Affiliate Delivery Licence Conditions

Application

114.1 It is a condition of every affiliate delivery licence that the licensee comply with sections 114.2 and 114.3.

Purchase of liquor

114.2 (1) For the purposes of this section and section 114.3,

(a) a licensee is affiliated with a licensed grocery store if an affiliate of the licensee holds the grocery store licence; and

(b) a licensee is affiliated with a licensed convenience store if an affiliate of the licensee holds the convenience store licence.

(2) The licensee shall ensure that liquor that is delivered under the licence is,

(a) purchased only from a grocery store or convenience store with which it is affiliated; and

(b) obtained only from,

(i) the affiliated grocery store or affiliated convenience store from which the liquor was purchased, or

(ii) inventory held by the licensee on behalf of the affiliated grocery store or affiliated convenience store from which the liquor was purchased.

(3) The licensee shall ensure that liquor is not purchased before an order for it is placed by a customer.

(4) For greater certainty, the conditions set out in this section apply in addition to the general conditions for the delivery of liquor set out in section 10 (General conditions for delivery of liquor).

Financial relationships

114.3 (1) The licensee shall not take or solicit orders for a brand of liquor or deliver a brand of liquor if the licensee or any of its affiliates has a direct or indirect financial interest in the brand or in a trademark under which the brand is marketed.

(2) The licensee shall not enter into an agreement with a liquor manufacturer that restricts the manufacturer’s ability to sell its liquor in stores.

(3) The licensee shall not enter into an agreement with a liquor manufacturer that guarantees a product listing for the manufacturer’s liquor or that guarantees any merchandising, marketing or promotional opportunities.

(4) The licensee shall not directly or indirectly request, demand or receive a financial or non-monetary benefit in Ontario or in any other jurisdiction from a liquor manufacturer or from a person acting on the manufacturer’s behalf, including a benefit requested, demanded or received in exchange for,

(a) a product listing for the manufacturer’s liquor; or

(b) any merchandising, marketing or promotional opportunity, including through a loyalty program or rewards marketing program described in paragraph 2 of subsection 3 (4) of Ontario Regulation 750/21 (Minimum Pricing of Liquor and Other Pricing Matters) made under the Act.

(5) Subsection (4) does not apply to collaboration between the licensee and the holder of a manufacturer’s licence to sell or the Brewers Retail Inc. licence with respect to demand planning, forecasting and category management services provided that neither party is remunerated in respect of the services.

(6) If the licensee charges a fee to a manufacturer for providing warehousing or distribution services for liquor, the fee must be calculated in the same manner for all manufacturers and the fee schedule must be available to the public.

Commencement

10. This Regulation comes into force on the later of July 1, 2026 and the day this Regulation is filed.