ontario regulation 338/26

made under the

Liquor Licence and Control Act, 2019

Made: October 29, 2026
Filed: October 29, 2026
Published on e-Laws: October 29, 2026
Published in The Ontario Gazette: November 14, 2026

Amending O. Reg. 746/21

(LICENSING)

1. Section 129 of Ontario Regulation 746/21 is amended by adding the following subsections:

(1.1) A licensee who does not exercise substantial ownership and control over a production site at which spirits are produced is nonetheless eligible for a distillery retail store endorsement for all or part of a property if the following conditions are met:

1. The licensee exercises substantial control over the property or part of the property to which the endorsement would apply.

2. The property is located no more than one kilometre from a production site that meets the following conditions:

i. Spirits are manufactured at the production site under contract for the licensee by another holder of a distillery licence.

ii. The production site has operated for a minimum period of 100 years.

3. Any brand of spirits that will be sold through the retail store has been manufactured at the production site referred to in paragraph 2 for a minimum of 100 years.

(1.2) A licensee that holds a distillery retail store endorsement is not eligible for a temporary extension endorsement if the licensee was eligible for the distillery retail store endorsement under subsection (1.1).

2. (1) Paragraph 1 of subsection 130 (4) of the Regulation is revoked and the following substituted:

1. Keep for sale, offer for sale or sell its beer at any location on the licensee’s production site provided that any sale of beer is made from a retail store on the production site.

(2) Subsection 130 (5) of the Regulation is amended by adding “for which the licensee was eligible under subsection 129 (1)” after “endorsement” in the portion before paragraph 1.

(3) Paragraph 1 of subsection 130 (5) of the Regulation is revoked and the following substituted:

1. Keep for sale, offer for sale or sell its spirits at any location on the licensee’s production site provided that any sale of spirits is made from a retail store on the production site.

(4) Section 130 of the Regulation is amended by adding the following subsection:

(5.1) A distillery retail store endorsement for which the licensee was eligible under subsection 129 (1.1) authorizes the licensee to perform the following actions in accordance with this Regulation:

1. Keep for sale, offer for sale or sell its spirits at any location on the property at which the retail store is located provided that any sale of spirits is made from the retail store.

2. Serve or offer to serve, in the retail store, spirits that are eligible to be sold in that retail store for the purpose of providing samples.

3. Permit individuals to possess or consume samples of spirits served by the licensee in the retail store.

(5) Paragraph 1 of subsection 130 (6) of the Regulation is revoked and the following substituted:

1. Keep for sale, offer for sale or sell the wine that the Registrar authorizes the licensee to sell under the endorsement at any location on the licensee’s production site provided that any sale of such wine is made from a retail store on the production site.

3. (1) Subsection 144 (2) of the Regulation is amended by striking out “shall not sell spirits under a distillery retail store endorsement” in the portion before paragraph 1 and substituting “who was eligible for the distillery retail store endorsement under subsection 129 (1) shall not sell spirits under the endorsement”.

(2) Paragraph 4 of subsection 144 (2) of the Regulation is amended by striking out “The spirits” at the beginning and substituting “All spirits”.

(3) Section 144 of the Regulation is amended by adding the following subsections:

(2.1) The holder of a distillery licence who was eligible for the distillery retail store endorsement under subsection 129 (1.1) shall not sell spirits under the endorsement unless the following criteria are satisfied:

1. At least 50 per cent of the volume of spirits sold each year must be distilled at the production site referred to in paragraph 2 of subsection 129 (1.1).

2. The remaining volume of spirits sold each year must be blended, aged or bottled at the production site referred to in paragraph 2 of subsection 129 (1.1).

3. All spirits must be brands that are owned by the licensee and manufactured for the licensee under contract by another holder of a distillery licence.

(2.2) The holder of a distillery licence who was eligible for the distillery retail store endorsement under subsection 129 (1.1) shall ensure that all aspects of the sale of spirits under the endorsement, including ordering and payment, are conducted in person at the property at which the retail store is located.

(2.3) The holder of a distillery licence who was eligible for the distillery retail store endorsement under subsection 129 (1.1) shall ensure that tours are conducted at the property at which the retail store is located.

Commencement

4. This Regulation comes into force on the later of January 1, 2027 and the day this Regulation is filed.