O. Reg. 232/16: SALE OF LIQUOR IN GOVERNMENT STORES

 

ontario regulation 232/16

made under the

liquor control act

Made: June 22, 2016
Filed: June 23, 2016
Published on e-Laws: June 23, 2016
Printed in The Ontario Gazette: July 9, 2016

SALE OF Liquor IN GOVERNMENT STORES

CONTENTS

 

part i
interpretation

Definitions

1. (1) In this Regulation,

“authorized” means authorized under the Act and “authorization” has a corresponding meaning;

“Category A grocery store” means a grocery store that, together with all related retail stores, has annual worldwide revenue that is greater than $1 billion;

“Category B grocery store” means a grocery store that is not a Category A grocery store;

“cider” means wine produced from apples or pears, or from the concentrated juice of apples or pears, to which is added herbs, water, honey or sugar;

“cream wine” means an alcoholic beverage made from wine and added milk ingredients;

“geographic region” means the North Region, the East Region, the West Region or the GTA Region as they are defined in section 34;

“grocery store” means a retail store that satisfies all of the following criteria:

1. The store offers for sale a variety of each of the following types of food products: canned food, dry food, frozen food, fresh fruit, fresh vegetables, fresh meats, prepared meats, fish, poultry, dairy products, baked goods and snack foods.

2. Food products occupy at least 10,000 square feet of retail floor space in the store.

3. The store is not primarily identified to the public as a pharmacy, even if a pharmacy as defined in the Drug and Pharmacies Regulation Act is located within the store;

“malt-based cooler” means an alcoholic beverage that is produced from a base of malt blended with juice, water, carbon dioxide or flavouring and that does not have the aroma or taste commonly attributed to beer;

“quality assurance wine” means wine (excluding cider) that is designated as meeting the quality control standards of a statutory appellation of origin regime that certifies, in the aggregate, less than 50 million litres of wine (excluding cider) annually;

“supply agreement” means an agreement described in section 16;

“VQA wine” means Vintners Quality Alliance wine as defined in the Vintners Quality Alliance Act, 1999;

“wine beverage” means a wine-based cocktail or an alcoholic beverage that is produced from a base of wine that may have added to it flavouring or flavouring preparations, juices, colour and sugar, that does not have the aroma or taste commonly attributed to wine and that is available in a spirits-based version.

(2) In this Regulation, expressions relating to franchises have the same meaning as in the Arthur Wishart Act (Franchise Disclosure), 2000.

Classes of authorization

2. In this Regulation, references to classes of authorization are references to the classes established in section 9.

Affiliated and related persons and entities

3. (1) For the purposes of this Regulation, two or more persons or entities are affiliated if they are affiliates within the meaning of the Alcohol and Gaming Regulation and Public Protection Act, 1996, if they are partners in the same partnership or if they are members of the same joint venture.

(2) For the purposes of this Regulation, a grocery store is related to another retail store if both stores are operated by the same person, if the operators of both stores are affiliated or if both stores are part of the same franchise system.

Small brewers, cideries, wineries, etc.

4. For the purposes of this Regulation, a manufacturer is a small brewer, a mid-sized or small winery or a small cidery in the circumstances set out in Part VI.

part ii
General

Opening hours for government stores

5. A government store shall be kept open for the sale of liquor during such hours as the Board from time to time directs.

Brewers Retail Inc.

6. Government stores for the sale of beer only may be established by Brewers Retail Inc. in any location approved by the Board and a manufacturer of beer licensed by the Alcohol and Gaming Commission of Ontario may store and sell beer in those stores under the control and supervision of the Board.

Sale of Canadian beer manufactured outside Ontario

7. (1) Manufacturers are authorized to sell beer manufactured outside Ontario but within Canada to the Board for sale through Brewers Retail Inc. at the outlets approved by the Board.

(2) Subsection (1) applies with respect to beer manufactured in a jurisdiction only if, in that jurisdiction, manufacturers are treated, with respect to the selling of beer manufactured in Ontario, in a way that is similar to the way manufacturers are treated in Ontario under subsection (1).

Sale of beer in store operated by manufacturer

8. A manufacturer of beer shall not store or sell beer in a store to which an authorization under clause 3 (1) (e) of the Act applies if,

(a) the beer contains alcohol that was obtained other than by the fermentation of an infusion or decoction of barley, malt and hops or of any similar products; and

(b) the alcohol described in clause (a) increases the total alcohol content of the beer by more than 0.5 of one per cent by volume.

part iii
sale of beer and wine in grocery stores

General Requirements

Classes of authorization for sales in grocery stores

9. The following classes of authorization are established in connection with the sale of beer and wine in grocery stores:

1. Beer and cider authorization: a single authorization that permits the sale of beer and cider but not other types of wine in a grocery store by the operator of the store.

2. Beer and wine authorization: a single authorization that permits the sale of beer and wine in a grocery store by the operator of the store.

3. Restricted beer and wine authorization: a beer and wine authorization that, for the first three years during which the operator sells wine under the authorization, has additional restrictions about the products that may be sold.  After the three-year period has elapsed, the authorization becomes a beer and wine authorization.

Public notice of authorization

10. The operator of a grocery store that is authorized to sell beer or wine in the store must post the authorization in a conspicuous place in the store.

Continuing duty to sell to the public

11. (1) The operator of a grocery store that is authorized to sell beer or wine in the store must begin to offer the beer and wine for sale to the public under the authorization within 12 months after receiving the authorization, and must continue to offer the beer and wine for sale in the store thereafter.

(2) This section does not apply with respect to the sale of cider.

Sales to the public

12. (1) The operator of a grocery store that is authorized to sell beer or wine in the store must ensure that beer and wine is not available to customers outside of the hours of operation authorized by the Board for the sale of beer and wine.

(2) All aspects of the sale of beer and wine, including ordering and payment, must be conducted in person at the grocery store.

(3) The operator must ensure that, before beer or wine is sold or served to a person apparently under the age of 19 years, the person’s identification is inspected.

(4) For a person apparently under the age of 19 years, the only acceptable form of identification at a grocery store is identification that includes the person’s photograph, states his or her date of birth and reasonably appears to have been issued by a government.  Acceptable forms of identification include the following:

1. A driver’s licence issued by the Province of Ontario with a photograph of the person to whom the licence is issued.

2. A Canadian passport.

3. A Canadian citizenship card with a photograph of the person to whom the card is issued.

4. A Canadian armed forces identification card.

5. A secure certificate of Indian status issued by the Government of Canada.

6. A photo card issued by the Board.

7. A permanent resident card issued by the Government of Canada.

8. A photo card issued under the Photo Card Act, 2008.

Price of beer and wine sold to the public

13. (1) The operator of a grocery store that is authorized to sell beer or wine in the store must ensure that it is offered for sale, and sold, at the price stipulated by the Board.

(2) The operator is not permitted to sell containers of wine (excluding cider) that have a lower stipulated price than the lowest retail price described in section 45.

(3) The operator must not do any of the following things:

1. Accept as full or part payment for beer or wine any benefits issued under a loyalty program or a rewards marketing program, including coupons, tickets, points or rewards.

2. Exchange, convert or redeem any benefits issued under a loyalty program or a rewards marketing program, including coupons, tickets, points or rewards, for cash that is applied to payment for beer or wine.

3. Offer free or discounted merchandise contingent upon the purchase of beer or wine.

(4) Except as may be required on sales receipts and invoices for the purposes of the Excise Tax Act (Canada), the operator shall display and advertise prices for beer and wine that include all applicable taxes and container deposits, including container deposits payable under the terms of a supply agreement between the operator and the Board.

Grocery store operations

14. (1) The operator of a grocery store that is authorized to sell beer or wine in the store must operate the store in compliance with all applicable federal, provincial and municipal law.

(2) The operator must ensure that the store continues to be a grocery store within the meaning of this Regulation.

(3) The operator must be a party to a supply agreement with the Board and must comply with the agreement.

(4) The operator must not acquire beer or wine for sale in the store otherwise than from the Board in accordance with the supply agreement.

(5) The operator must provide a secure area for the storage of beer and wine that is not on display.

(6) The operator must ensure that any employee who handles beer or wine is at least 18 years of age.

(7) The operator must ensure that any person who sells beer or wine in the store or offers samples of beer or wine to customers in the store has successfully completed a server training course.

(8)  A person is not authorized to sell beer or wine at a grocery store if, as a result of the store’s becoming related to another retail store, the limits described in paragraphs 1 and 2 of subsection 32 (2) are exceeded.

Operator’s relationship to beer and wine manufacturers

15. (1) The operator of a grocery store that is authorized to sell beer or wine in the store must not offer a brand of beer or wine for sale at the grocery store if the operator 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 operator must not enter into an agreement with a beer or wine manufacturer that restricts the manufacturer’s ability to sell its beer or wine in other stores.

(3) The operator must not enter into an agreement with a beer or wine manufacturer that guarantees the provision of shelf space at the grocery store or a product listing for the manufacturer’s beer or wine or that guarantees any merchandising, marketing or promotional opportunities.

(4) The operator and its agents and employees must not directly or indirectly request, demand or receive a financial or non-monetary benefit in Ontario or in any other jurisdiction from a beer or wine manufacturer or from a representative or employee of the manufacturer, including a benefit for the provision of shelf space at the grocery store or a product listing for the manufacturer’s beer or wine, or for any merchandising, marketing or promotional opportunity.

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

Board’s powers and duties re: supply agreements

16. (1) Subject to section 17, the Board may enter into a supply agreement with the operator of a grocery store for the supply of beer or wine to the operator on the terms the Board considers reasonable.

(2) The Board shall not enter into a supply agreement with the operator of a grocery store if the agreement would result in there being more supply agreements for any class of authorization than there are authorizations permitted under Part V for that class.

Competitive process re: supply agreements

17. (1) In determining whether to enter into a supply agreement with the operator of a grocery store, the Board shall consider the price that the operator offers to the Board for the beer or wine, as the case may be, as determined through a competitive process.

(2) If two or more grocery stores are part of the same franchise system, only the franchisor may participate in the competitive process.

(3) If a supply agreement with the operator of a grocery store is terminated, the operator is not eligible to participate in a competitive process with respect to grocery stores in the same geographic region until three years have elapsed after the termination.

Sale of Beer

Beers available for sale

18. (1) The operator of a grocery store that is authorized to sell beer in the store must offer for sale a variety of brands of beer from manufacturers with a variety of annual production amounts of beer.

(2) The operator must not offer for sale, or sell, any of the following beers:

1. Beer with an alcohol content greater than 7.1 per cent by volume.

2. Beer containing alcohol that was obtained other than by the fermentation of an infusion or decoction of barley, malt and hops or of any similar products if that alcohol increases the total alcohol content of the beer by more than 0.5 of one per cent by volume.

3. Malt-based coolers.

(3) Upon request, the Board shall give the operator a list of the beers that do not contravene subsection (2) and are available for sale to grocery stores.

Packaging, etc.

19. (1) The operator of a grocery store that is authorized to sell beer in the store must not offer for sale, or sell, beer in containers with a volume of more than 750 ml or beer in packages with more than six containers.

(2) The operator must not offer a discount or rebate in respect of the purchase of more than six containers of beer.

Product display

20. (1) The operator of a grocery store that is authorized to sell beer in the store must ensure that the beer is displayed in a single contiguous product display area.

(2) The operator must ensure that at least 20 per cent of the containers of beer on display are containers of beer produced by small brewers.

(3) If the operator is also authorized to sell wine at the store, the operator must ensure that at least 10 per cent of the containers of beer and wine on display are containers of beer.

(4) Upon request, the Board shall give the operator a list of the beers that satisfy the requirement set out in subsection (2) and are available for sale to grocery stores.

Sale of Wine

Wines available for sale

21. (1) The operator of a grocery store that is authorized to sell wine in the store must not offer for sale, or sell, any of the following wines:

1. Wine with an alcohol content greater than 18 per cent by volume.

2. Cream wine.

3. Wine beverages.

(2) Upon request, the Board shall give the operator a list of the wines that do not contravene subsection (1) and are available for sale to grocery stores.

Wines available for sale, restricted beer and wine authorization

22. (1) The following requirements apply with respect to a restricted beer and wine authorization held by the operator of a grocery store:

1. For the first three years during which the operator sells wine under the authorization, the operator is permitted to sell only,

i. cider,

ii. wine that is produced by a small winery using grapes from a single country, and

iii. quality assurance wine produced using grapes from a single country by a winery that, at any time during the three-year period, is a mid-sized winery.

2. Despite paragraph 1, during that three-year period the operator is not permitted to sell wine (excluding cider) manufactured by a winery that is affiliated with another winery that is not a mid-sized or small winery at any time during the three-year period.

(2) Upon request, the Board shall give the operator a list of the wines that satisfy the requirements set out in subsection (1) and are available for sale to grocery stores.

Packaging

23. The operator of a grocery store that is authorized to sell wine in the store must not offer for sale, or sell, wine in containers with a volume of more than four litres.

Product display

24. (1) The operator of a grocery store that is authorized to sell wine in the store must ensure that the wine (excluding cider) is displayed in a single contiguous product display area.

(2) If the operator sells VQA wines, the display area must contain one or more signs indicating the availability of VQA wines for sale.

(3) The operator must ensure that at least 10 per cent of the containers of beer and wine on display are containers of wine (excluding cider).

Product display, specified classes of authorization

25. (1) The operator of a grocery store that is authorized to sell wine in the store must ensure that the display of wine satisfies the requirements set out in this section for the class of authorization held by the operator.

(2) The following requirements apply with respect to a beer and wine authorization, other than a restricted beer and wine authorization:

1. At least 10 per cent of the containers of wine (excluding cider) on display in the store must contain wine manufactured by small wineries.

2. At least 50 per cent of the containers of wine (excluding cider) on display in the store must contain wine that is produced using grapes from a single country and in respect of which at least one of the following criteria is satisfied:

i. The wine is quality assurance wine.

ii. The wine was produced by a small winery.

iii. The country where the grapes were grown produces, in the aggregate, less than 150 million litres of wine annually from grapes grown in that country.

(3) The following requirement applies with respect to a restricted beer and wine authorization:

1. For the first three years during which the operator sells wine under the authorization, at least 20 per cent of the containers of wine (excluding cider) on display in the store must contain wine manufactured by small wineries.

(4) Upon request, the Board shall give the operator a list of the wines that satisfy the requirements set out in subsections (2) and (3) and are available for sale to grocery stores.

Sale of Cider

Ciders available for sale

26. (1) The operator of a grocery store that is authorized to sell cider in the store must not offer for sale, or sell, cider with an alcohol content greater than 7.1 per cent by volume.

(2) Upon request, the Board shall give the operator a list of the ciders that do not contravene subsection (1) and are available for sale to grocery stores.

Packaging, etc.

27. (1) The operator of a grocery store that is authorized to sell cider in the store must not offer for sale, or sell, cider in containers with a volume of more than 750 ml. or cider in packages with more than six containers.

(2) The operator must not offer a discount or rebate in respect of the purchase of more than six containers of cider.

Product display

28. (1) The operator of a grocery store that sells both beer and cider in the store must ensure that the beer and cider are displayed in a single contiguous product display area.

(2) The operator must ensure that at least 20 per cent of the containers of cider on display are containers of cider produced by small cideries.

(3) Upon request, the Board shall give the operator a list of the ciders that satisfy the requirement set out in subsection (2) and are available for sale to grocery stores.

part iv
authorizing sales in grocery stores

Ineligibility of persons to be authorized

29. A person is not eligible to be authorized to sell beer or wine in a grocery store if any of the following circumstances exist with respect to the person:

1. Having regard to the person’s financial position, the person cannot reasonably be expected to be financially responsible in the conduct of the person’s business.

2. The past or present conduct of any of the following persons affords reasonable grounds to believe that the person will not carry on business in accordance with the law and with integrity and honesty:

i. The operator of the grocery store.

ii. An officer or director of the operator.

iii. A person having responsibility for the management or operation of the store.

Restriction re: proximity to agency store

30. The Board shall not issue or transfer an authorization to sell beer and wine at a grocery store that is located within 10 kilometres of an agency store within the meaning of subsection 17 (1) of the Alcohol and Gaming Regulation and Public Protection Act, 1996.

Restrictions re: lease, etc. for winery retail store

31. (1) Before January 1, 2026, the Board shall not issue or transfer an authorization to sell beer and wine at a grocery store where, on May 1, 2016, space for a winery retail store was leased or licensed, unless the winery has notified the Board in writing that the winery does not wish the lease or licence at the grocery store to continue.

(2) A person is not authorized to sell beer at a grocery store where space for a winery retail store was leased or licensed if, after entering into a supply agreement in respect of the store, the operator of the grocery store unilaterally terminates the lease or licence for any reason other than a default by the operator of the wine retail store under the lease or licence.

Transfers, change of store owner

32. (1) Upon application, if a grocery store is sold, the Board shall, under section 3.0.2 of the Act, transfer to the purchaser of the store an authorization to sell beer and wine in the store.

(2) However, the Board shall not transfer the authorization to the purchaser in either of the following circumstances:

1. For a beer and wine authorization, if the transfer would result in such authorizations being held in respect of more grocery stores in the applicable geographic region than are permitted under Part V.

2. For a beer and cider authorization, if the transfer would result in such authorizations being held in respect of more than 48 Category A grocery stores or more than 19 related Category A grocery stores.

(3) Subsection (1) does not apply if the purchaser is ineligible to be authorized to sell beer and wine in a grocery store.

Transfers, change of store location

33. (1) Upon application, the Board shall, under section 3.0.2 of the Act, transfer an authorization with respect to one grocery store to another store located in the same geographic region if the store is owned by the same operator.

(2) Upon application, the Board shall transfer an authorization with respect to one grocery store to another store located in the same geographic region if the operator of the second store is an affiliate of the operator of the first store or if the second store is part of the same franchise system as the first store.

(3) Subsection (2) does not apply if the operator of the second store is ineligible to be authorized to sell beer and wine in a grocery store.

part v
availability of authorizations for sales in grocery stores

Definitions re: geographic regions

34. (1) In this Part,

“census division” means a census division as identified in the 2011 Census of Canada, as reported by Statistics Canada under the Statistics Act (Canada);

“East Region” means the following census divisions: Stormont, Dundas and Glengarry; Prescott and Russell; Ottawa; Leeds and Grenville; Lanark; Frontenac; Lennox and Addington; Hastings; Prince Edward; Northumberland; Peterborough; Kawartha Lakes; Simcoe; Muskoka; Haliburton; Renfrew;

“GTA Region” means the following census divisions: Durham; York; Toronto; Peel; Halton;

“North Region” means the following census divisions: Nipissing; Parry Sound; Sudbury; Greater Sudbury; Timiskaming; Cochrane; Algoma; Thunder Bay; Rainy River; Kenora;

“West Region” means the following census divisions: Dufferin; Wellington; Hamilton; Niagara; Haldimand-Norfolk; Brant; Waterloo; Perth; Oxford; Elgin; Chatham-Kent; Essex; Lambton; Middlesex; Huron; Bruce; Grey; Manitoulin.

(2) The Board shall, on request, provide a person with information about the boundaries of census divisions.

Overall maximum number of authorizations

35. (1) Beer and wine may be authorized for sale in a maximum of 130 grocery stores under the following authorizations:

1. A maximum of 70 beer and wine authorizations, including a maximum of 35 restricted beer and wine authorizations.

2. A maximum of 60 beer and cider authorizations.

(2) No more than the maximum number of authorizations described in subsection (1) shall be in effect at one time.

For the North Region

36. Subject to section 40, the Board shall issue authorizations for the sale of beer and wine in grocery stores in the North Region in accordance with the following rules:

1. Beer and wine authorizations: authorizations are allocated for a maximum of three grocery stores in the region.

2. Restricted beer and wine authorizations: authorizations are allocated for a maximum of two grocery stores in the region.

3. For both types of beer and wine authorizations, combined: no more than two of the authorizations that are allocated by paragraph 1 or 2 may be issued to a single group of related grocery stores.

For the East Region

37. Subject to section 40, the Board shall issue authorizations for the sale of beer and wine in grocery stores in the East Region in accordance with the following rules:

1. Beer and wine authorizations: authorizations are allocated for a maximum of seven grocery stores in the region.

2. Restricted beer and wine authorizations: authorizations are allocated for a maximum of eight grocery stores in the region.

3. For both types of beer and wine authorizations, combined: no more than four of the authorizations that are allocated by paragraph 1 or 2 may be issued to a single group of related grocery stores.

For the West Region

38. The Board shall issue authorizations for the sale of beer and wine in grocery stores in the West Region in accordance with the following rules:

1. Beer and wine authorizations: authorizations are allocated for a maximum of 10 grocery stores in the region. Two of these authorizations are reserved for Category B grocery stores.

2. Restricted beer and wine authorizations: authorizations are allocated for a maximum of eight grocery stores in the region.  One of these authorizations is reserved for a Category B grocery store.

3. For both types of beer and wine authorizations, combined:

i. No more than six of the authorizations that are allocated by paragraph 1 or 2 may be issued to a single group of related grocery stores.

ii. No more than one of the authorizations that are reserved by paragraph 1 or 2 for Category B grocery stores may be issued to a single group of related Category B grocery stores.

For the GTA Region

39. The Board shall issue authorizations for the sale of beer and wine in grocery stores in the GTA Region in accordance with the following rules:

1. Beer and wine authorizations: authorizations are allocated for a maximum of 15 grocery stores in the region. Five of these authorizations are reserved for Category B grocery stores.

2. Restricted beer and wine authorizations: authorizations are allocated for a maximum of 17 grocery stores in the region. Six of these authorizations are reserved for Category B grocery stores.

3. For both types of beer and wine authorizations, combined:

i. No more than eight of the authorizations that are allocated by paragraph 1 or 2 may be issued to a single group of related grocery stores.

ii. No more than four of the authorizations that are reserved by paragraph 1 or 2 for Category B grocery stores may be issued to a single group of related Category B grocery stores.

Authorizations reserved for Category B grocery stores, North and East Regions

40. (1) The Board shall reserve authorizations for the sale of beer and wine in Category B grocery stores in the North and East Regions in accordance with the following rules:

1. Beer and wine authorizations: two of the authorizations allocated under paragraph 1 of section 37 are reserved, and may be issued in either the North Region or the East Region.

2. Restricted beer and wine authorizations: two of the authorizations allocated under paragraph 2 of section 37 are reserved, and may be issued in either the North Region or the East Region.

(2) The authorizations that are reserved under subsection (1) shall not be issued to any group of related stores.

part vi
miscellaneous

Definitions

41.  In this Part,

“production year” means the 12-month period that ends on the December 31 immediately before the beginning of a sales year;

“sales year” means the period of approximately 12 months,

(a) that begins on March 1 in a year or, if March 1 is a Saturday or Sunday, that begins on the following Monday, and

(b) that ends on the last day of February in the following year or, if the last day of February is a Friday or Saturday, that ends on the following Sunday.

Small brewers: criteria

42. (1) For the purposes of this Regulation, a manufacturer of beer is a small brewer for a sales year if both of the following criteria are satisfied:

1. In the preceding production year, the manufacturer’s worldwide production did not exceed 400,000 hectolitres of beer or, if the manufacturer has been manufacturing beer for less than one year, its worldwide production is not expected to exceed 400,000 hectolitres of beer in the year.

2. Every affiliate of the manufacturer that manufactured beer in the preceding production year was a small brewer.

(2) In determining the amount of a manufacturer’s worldwide production of beer for a production year, the following are included:

1. All beer manufactured during the year by the manufacturer, including beer that is manufactured under contract for another beer manufacturer.

2. All beer manufactured during the year by an affiliate of the manufacturer, including beer manufactured by the affiliate under contract for another beer manufacturer.

3. All beer manufactured during the year by another beer manufacturer under contract for the manufacturer or for an affiliate of the manufacturer.

(3) A contract referred to in subsection (2) does not include a contract, agreement or arrangement that provides only for the final bottling or other packaging of beer, including any incidental processes such as final filtration and final carbonation or the addition of any substance to the beer that, if added, must be added at the time of final filtration.

Mid-sized and small wineries: criteria

43. (1) For the purposes of this Regulation, a manufacturer of wine is a mid-sized winery if all of the following criteria are satisfied:

1. In the most recent 12-month period for which data is available, the manufacturer’s worldwide sales did not exceed 4.5 million litres of wine or, if the manufacturer has been selling wine for less than one year, its worldwide sales are not expected to exceed 4.5 million litres of wine in the year.

2. Every affiliate of the manufacturer that manufactures wine is a mid-sized or small winery.

3. The manufacturer is not a small winery.

(2) For the purposes of this Regulation, a manufacturer of wine is a small winery if all of the following criteria are satisfied:

1. In the most recent 12-month period for which data is available, the manufacturer’s worldwide sales did not exceed 200,000 litres of wine or, if the manufacturer has been selling wine for less than one year, its worldwide sales are not expected to exceed 200,000 litres of wine in the year.

2. Every affiliate of the manufacturer that manufactures wine is a small winery.

(3) In determining the amount of a manufacturer’s worldwide sales of wine, the following are included:

1. All wine (other than cider) sold by the manufacturer.

2. All wine (other than cider) sold by an affiliate of the manufacturer.

Small cideries: criteria

44. (1) For the purposes of this Regulation, a manufacturer of wine is a small cidery for a sales year if both of the following criteria are satisfied:

1. In the preceding production year, the manufacturer’s worldwide production did not exceed 25,000 hectolitres of cider or, if the manufacturer has been manufacturing cider for less than one year, its worldwide production is not expected to exceed 25,000 hectolitres of cider in the year.

2. Every affiliate of the manufacturer that manufactured cider in the preceding production year was a small cidery.

(2) In determining the amount of a manufacturer’s worldwide production of cider for a production year, the following are included:

1. All cider manufactured during the year by the manufacturer, including cider that is manufactured under contract for another wine manufacturer.

2. All cider manufactured during the year by an affiliate of the manufacturer, including cider manufactured by the affiliate under contract for another cider manufacturer.

3. All cider manufactured during the year by another cider manufacturer under contract for the manufacturer or for an affiliate of the manufacturer.

(3) A contract referred to in subsection (2) does not include a contract, agreement or arrangement that provides only for the final bottling or other packaging of cider, including any incidental processes such as final filtration and final carbonation or the addition of any substance to the cider that, if added, must be added at the time of final filtration.

Price of wine, by container size

45. (1) If wine (other than cider) is sold in a grocery store in a container with a size described in Column 1 of the Table to this section, the retail price of the wine must be equal to or greater than the amount specified in Column 2.

(2) If wine (other than cider) is sold in a grocery store in a container (“non-standard container”) with a size different from the size referred to in subsection (1), the retail price of the wine must be equal to or greater than the amount determined using the formula,

(A / B) × C

in which,

  “A” is the price shown in the Table to this section for a container (“standard container”) that is smaller than, but closest to, the size of the non-standard container;

  “B” is the size of the standard container; and

  “C” is the size of the non-standard container.

Table

Item	Column 1 Container size in millilitres	Column 2 Price in dollars
1.	50 or less	0.85
2.	200	3.35
3.	250	4.10
4.	300	4.80
5.	375	5.90
6.	400	6.20
7.	500	7.60
8.	600	9.00
9.	720	10.65
10.	750	10.95
11.	1000	14.05
12.	1500	20.15
13.	2000	25.90
14.	2250	28.75
15.	3000	37.90
16.	4000	49.35

 

part vii
revocation and commencement

Revocation

46. Ontario Regulation 290/15 is revoked.

Commencement

47. This Regulation comes into force on the day it is filed.