7.1 Licensees

The Corporation shall implement effective November 1, 2015, or as soon after that as is feasible from a systems and operations perspective (but no later than January 31, 2016) policies and practices that are authorized by the Regulator to permit small Licensees that purchase no more than 2,046 litres of Beer per year through the Corporation to purchase up to that quantity of Beer at the Corporation’s retail stores or other outlets of the Corporation at Consumer Retail Prices. The Parties acknowledge that, pursuant to the Liquor Control Act (Ontario), the Corporation is currently and has been authorized to charge other Licensees a price that is different from the Consumer Retail Price.

7.2 Pooled Delivery

Any Brewer with a licensed production facility in Ontario and with annual worldwide production by it and its Affiliates of less than 150,000 hectolitres of Beer (“Pooling-Eligible Brewer”) shall be permitted to arrange for pooled delivery with other such Pooling-Eligible Brewers of their products from their Ontario production facilities to Licensees and the LCBO, and shall be permitted to use third party carriers and warehousing. Each Brewer that is a Pooling-Eligible Brewer as of the Effective Date shall remain a Pooling-Eligible Brewer during the Term for so long as it does not become an Affiliate of a Brewer that is not a Pooling-Eligible Brewer. The Corporation shall not interfere with Brewers who wish to avail themselves of such pooled delivery (whether or not including third party carriers and warehousing) and shall not take any action or do anything that would reasonably be considered to unfairly limit or increase the cost of such activities.

7.3 Consumer Prices

It is the expectation of the Province that Consumer Retail Prices charged for the most popular Beer products will not increase before May 1, 2017, as a result of the changes being introduced by the Key Principles and the New Beer Agreements, though they may be subject to ordinary course price changes tied to increases in the minimum retail prices established under Ontario law. These expectations have been communicated to the principal Brewers in the industry separately, and each has separately confirmed to the Province that it is its intention to comply with these expectations, other than in circumstances where the industry context has changed significantly. The Council has recommended to the Province that, as part of the Province’s authorization of the Key Principles and the New Beer Agreements, it affirm the authority of the Province to enforce its expectations in this respect, should that become necessary.