O. Reg. 750/21: MINIMUM PRICING OF LIQUOR AND OTHER PRICING MATTERS

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ontario regulation 750/21

made under the

Liquor Licence and Control Act, 2019

Made: November 4, 2021
Filed: November 8, 2021
Published on e-Laws: November 9, 2021
Printed in The Ontario Gazette: November 27, 2021

MINIMUM PRICING OF LIQUOR AND OTHER PRICING MATTERS

CONTENTS

Part I
Interpretation

Definitions

1. (1) In this Regulation,

“absolute alcohol” means absolute alcohol as defined in Division 2 of Part B of the Food and Drug Regulations; (“alcool absolu”)

“annual adjustment date” means, subject to subsection (2), March 1 in every year; (“date de rajustement annuel”)

“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; (“cidre”)

“Class A spirits” means any beverage that contains more than 15 per cent alcohol by volume obtained from distillation and that is,

(a)  a whisky as described in sections B.02.010 to B.02.023 of the Food and Drug Regulations,

(b)  a rum as described in section B.02.030 of the Food and Drug Regulations,

(c)  a gin as described in sections B.02.040 or B.02.041 of the Food and Drug Regulations,

(d)  a brandy or other product as described in sections B.02.050 to B.02.058 of the Food and Drug Regulations,

(e)  a vodka as described in section B.02.080 of the Food and Drug Regulations,

(f)  a vodka as described in clause (e) to which a flavouring has been added,

(g)  a tequila as described in section B.02.090 of the Food and Drug Regulations,

(h)  a mezcal as described in section B.02.091 of the Food and Drug Regulations, or

(i)  a fruit spirit as described in section B.02.102 of the Food and Drug Regulations; (“spiritueux de catégorie A”)

“Class B spirits” means any beverage that,

(a)  is a liqueur or spirituous cordial as described in section B.02.070 of the Food and Drug Regulations, or

(b)  contains more than 14.8 per cent alcohol by volume obtained from distillation, but is not,

(i)  a Class A spirit,

(ii)  a one pour cocktail, or

(iii)  fortified wine; (“spiritueux de catégorie B”)

“Class C spirits” means a beverage that,

(a)  contains more than 0.5 per cent but less than or equal to 14.8 per cent alcohol by volume obtained from distillation, other than fortified wine, or

(b)  is a one pour cocktail; (“spiritueux de catégorie C”)

“consumer” means a person who purchases liquor in Ontario,

(a)  for use or consumption by the person or by someone else at the person’s expense, or

(b)  on behalf of or as an agent for a principal who desires to acquire the liquor for use or consumption by the principal or by someone else at the principal’s expense; (“consommateur”)

“draft beer” means beer for sale in a container that has a capacity of 18 litres or more; (“bière pression”)

“draft cider” means cider for sale in a container that has a capacity of 18 litres or more; (“cidre pression”)

“Food and Drug Regulations” means the Food and Drug Regulations made under the Food and Drugs Act (Canada); (“Règlement sur les aliments et drogues”)

“fortified wine” means wine to which an alcoholic distillate has been added and that contains no more than 20 per cent alcohol by volume; (“vin fortifié”)

“minimum retail price” includes all taxes, but does not include any container deposit; (“prix de détail minimum”)

“non-draft beer” means beer for sale in containers each of which has a capacity of less than 18 litres; (“bière non pression”)

“non-draft cider” means cider for sale in containers each of which has a capacity of less than 18 litres; (“cidre non pression”)

“non-refillable container” means a container that the manufacturer of a beverage or other person who initially fills the container with the beverage does not intend to refill, but does not include a beer bottle that is recognized as an industry standard bottle by the Brewers Association of Canada and for which the manufacturer has entered into an agreement with the Association for the use of the bottle; (“contenant à remplissage unique”)

“one pour cocktail” means any beverage that,

(a)  contains more than 7 per cent and no more than 15 per cent alcohol by volume obtained from distillation,

(b)  has been mixed with a non-alcoholic beverage other than water during the course of manufacturing,

(c)  is intended by the manufacturer to be consumed in its immediate form, and

(d)  is sold in a container larger than 500 mL; (“cocktail prêt à servir”)

“wine cooler” means a beverage made from wine to which flavouring, colouring, sugar or other additives have been added and contains no more than 7 per cent alcohol by volume. (“vin panaché”)

(2) In a year in which March 1 falls on a Saturday or Sunday, the annual adjustment date shall be the following Monday.

PART II
uniform pricing and minimum retail pricing

Uniform liquor pricing

2. (1) All liquor sold to consumers in retail stores or to holders of a licence to operate a liquor consumption premises shall be sold at a uniform price for the class, variety or brand of liquor, as the case may be, except as otherwise provided for in this section.

(2) Liquor sold through a duty free shop, as defined in subsection 2 (1) of the Customs Act (Canada) and in respect of which a written approval from the LCBO has been obtained under subsection 15 (1) of the Duty Free Shop Regulations (Canada), may be sold at a price other than the uniform price for the class, variety or brand of liquor that would otherwise apply.

(3) The uniform price at which a class, variety or brand of liquor is sold to holders of a licence to operate a liquor consumption premises may be different than the uniform price at which the class, variety or brand of liquor is sold to consumers in retail stores.

(4) Despite subsection (3), beer sold by Brewers Retail Inc. to a holder of a licence to operate a liquor consumption premises may be sold at the uniform price at which beer is sold to consumers in retail stores if the purchaser is a small licensee as determined by the Master Framework Agreement dated September 22, 2015 between Brewers Retail Inc., Labatt Brewing Company Limited, Molson Canada 2005, Sleeman Breweries Ltd and Her Majesty the Queen in right of Ontario.

(5) Liquor sold in the circumstances described in subsection 20 (1) or 20 (3) of this Regulation may be sold at a price other than the uniform price for the class, variety or brand of liquor that would otherwise apply.

(6) The uniform price at which a class, variety or brand of liquor shall be sold to consumers in retail stores shall be the price set by the LCBO for sale to consumers in retail stores.

(7) If the LCBO does not set a price for a class, variety or brand of liquor for sale to consumers in retail stores, the uniform price at which the class, variety or brand of liquor shall be sold to consumers in retail stores shall be set by the manufacturer of the liquor.

(8) The uniform price at which a class, variety or brand of liquor shall be sold to holders of a licence to operate a liquor consumption premises shall be the price set by the LCBO for sale to holders of a licence to operate a liquor consumption premises.

(9) If the LCBO does not set a price for a class, variety or brand of liquor for sale to holders of a licence to operate a liquor consumption premises, the uniform price at which the class, variety or brand of liquor shall be sold to holders of a licence to operate a liquor consumption premises shall be set by the manufacturer of the liquor.

Minimum retail pricing

3. (1) Except as otherwise provided in this Regulation, an operator of a retail store shall not offer for sale or sell liquor at a retail price lower than the minimum retail price established in accordance with this Regulation for that type of liquor and container size, plus the container deposit, if any.

(2) Subsection (1) applies only to sales of liquor to a consumer or a person who is buying the liquor pursuant to a permit issued under the Act.

(3) Subsection (1) does not apply to sales of liquor to a person for the purpose of in-store sampling in a retail store.

Applications for change in beer price

4. The following rules apply with respect to applications made to the LCBO by a beer manufacturer for a change in the uniform price at which its beer is sold at retail stores:

1.  A beer manufacturer may request a change in the price at which its beer is sold by submitting a price change application to the LCBO on any Monday no later than 4 p.m. or, if Monday is a holiday, no later than 4 p.m. on the first day after that is not a holiday.

2.  On condition that the price change requested is not lower than the minimum retail price for beer in effect on the day that the price change is to take effect, the LCBO shall notify the applicant manufacturer and retail stores that sell beer that the price change will go into effect on the second Monday following the making of the application, or, if the Monday is a holiday, on the first day after that is not a holiday.

Part III
class a and Class B Spirits

Minimum retail price

5. The minimum retail price for Class A spirits and Class B spirits is the price set out in Column 2 or 3, as the case may be, of the Table to this section set out opposite the container size in Column 1.

TABLE
MINIMUM RETAIL PRICE

Item	Column 1 Container size (mL)	Column 2 Minimum retail price in dollars — Class A spirits	Column 3 Minimum retail price in dollars — Class B spirits
1.	40	2.65	1.70
2.	50	3.30	1.95
3.	60	4.15	2.25
4.	100	4.60	2.80
5.	120	5.30	3.60
6.	150	6.65	4.45
7.	180	7.95	5.15
8.	200	8.80	5.65
9.	250	10.50	6.75
10.	280	11.85	7.45
11.	300	12.65	8.10
12.	350	14.70	9.35
13.	360	15.10	9.75
14.	375	15.70	9.95
15.	400	16.70	10.55
16.	500	19.00	12.85
17.	600	22.75	15.35
18.	650	24.35	16.60
19.	660	25.15	17.10
20.	700	26.45	17.80
21.	720	27.05	18.20
22.	730	27.45	18.70
23.	750	28.00	19.05
24.	800	29.85	20.20
25.	1000	37.15	25.40
26.	1050	38.90	26.70
27.	1125	41.70	28.55
28.	1130	41.95	28.80
29.	1140	42.25	29.00
30.	1200	44.50	30.40
31.	1280	47.45	32.45
32.	1400	51.90	35.45
33.	1500	55.25	37.70
34.	1750	63.20	43.75
35.	2000	72.25	49.95
36.	2600	93.90	64.90
37.	3000	108.50	74.95
38.	3790	136.80	94.50
39.	3850	139.05	96.05
40.	4000	144.05	99.50
41.	4500	162.35	112.10

Annual adjustment

6. (1) On each annual adjustment date, the minimum retail price at which each container size of Class A spirits and Class B spirits set out in the Table to section 5 can be sold shall be adjusted in accordance with the following formula:

A + (A × I)

in which,

  “A”  is the minimum retail price in effect on the day before the annual adjustment date of the particular year, and

“I”  is the index factor determined in accordance with Schedule 1. 

(2) On or before each annual adjustment date, the LCBO shall publish the minimum retail prices, as adjusted under subsection (1), on its website.

Other container sizes

7. (1) If Class A spirits or Class B spirits are sold in a container size other than a container size shown in the Table to section 5, the minimum retail price shall be determined in accordance with the following formula:

A/B × C

in which,

  “A”  is the minimum retail price in effect for the container size shown in the Table that is next smaller than the container that is not shown,

  “B”  is the size, in millilitres, of the container shown in the Table that is next smaller than the container that is not shown, and

  “C”  is the size, in millilitres, of the container that is not shown.

(2) If a minimum retail price for a container size calculated under subsection (1) is higher than the minimum retail price in effect for the container size shown in the Table to section 5 that is next larger than the container size in respect of which the calculation is made, then the minimum retail price for the container shall be the minimum retail price in effect for the container size shown in the Table that is next larger than the container size in respect of which the calculation is made.

Final determination of minimum retail price

8. (1) If a price determined under this Part ends in a multiple of five cents, then that price becomes the minimum retail price on the annual adjustment date.

(2) If a price determined under this Part does not end in a multiple of five cents, it shall be rounded up to the next multiple of five cents and the price, as rounded up, becomes the minimum retail price on the annual adjustment date.

Part IV
Beer, Cider, class c spirits and wine cooler

Minimum retail prices — beer

9. (1) The minimum retail price for non-draft beer that contains less than 5.6 per cent alcohol by volume is $2.816 per litre.

(2) The minimum retail prices for non-draft beer that contains 5.6 per cent or more alcohol by volume are the following:

1.  For non-draft beer sold in a refillable container, $67.90 per litre of absolute alcohol in the non-draft beer.

2.  For non-draft beer sold in a non-refillable container, the sum of the amount determined under paragraph 1 plus the following amounts:

i.  8.93 cents per non-refillable container.

ii.  An amount equal to the harmonized sales tax that would be payable by a purchaser under Part IX of the Excise Tax Act (Canada) in respect of the amount described in subparagraph i.

iii.  An amount equal to 4 per cent of 8.93 cents per non-refillable container.

(3) The minimum retail prices for draft beer are the following:

1.  For draft beer sold in a refillable container, $2.835 per litre of draft beer.

2.  For draft beer sold in a non-refillable container, the sum of the amount determined under paragraph 1 plus the following amounts:

i.  8.93 cents per non-refillable container.

ii.  An amount equal to the harmonized sales tax that would be payable by a purchaser under Part IX of the Excise Tax Act (Canada) in respect of the amount described in subparagraph i. 

iii.  An amount equal to 4 per cent of 8.93 cents per non-refillable container.

Minimum retail prices — cider, Class C spirits, wine cooler

10. The minimum retail prices for non-draft and draft cider, Class C spirits and wine cooler are the following:

1.  For a product sold in a refillable container, the applicable baseline rate set out in the Table to section 11.

2.  For a product sold in a non-refillable container, the sum of the amount determined under paragraph 1 plus the following amounts:

i.  8.93 cents per non-refillable container.

ii.  An amount equal to the harmonized sales tax that would be payable by a purchaser under Part IX of the Excise Tax Act (Canada) in respect of the amount described in subparagraph i. 

iii.  An amount equal to 4 per cent of 8.93 cents per non-refillable container.

Baseline rate — cider, Class C spirits and wine cooler

11. The baseline rate for cider, Class C spirits and wine cooler is the rate set out in Column 2 of the Table to this section set out opposite the alcohol content by volume of the product in Column 1.

TABLE
BASELINE RATES

Item	Column 1 Product, alcohol content by volume	Column 2 Baseline rate
1.	Draft cider, any alcohol content	$2.994 per litre
2.	Non-draft cider, less than 4.1%	$3.709 per litre
3.	Non-draft cider, 4.1 to less than 4.9%	$3.763 per litre
4.	Non-draft cider, 4.9 to less than 5.6%	$3.862 per litre
5.	Non-draft cider, 5.6% or more	$71.703 per litre of absolute alcohol
6.	Class C spirits, less than 4.1%	$3.709 per litre
7.	Class C spirits, 4.1 to less than 4.9%	$3.763 per litre
8.	Class C spirits, 4.9 to less than 5.6%	$3.862 per litre
9.	Class C spirits, 5.6% or more	$71.703 per litre of absolute alcohol
10.	Wine cooler, less than 4.1%	$3.709 per litre
11.	Wine cooler, 4.1 to less than 4.9%	$3.763 per litre
12.	Wine cooler, 4.9 to less than 5.6%	$3.862 per litre
13.	Wine cooler, 5.6% or more	$71.703 per litre of absolute alcohol

Annual adjustment

12. (1) On each annual adjustment date, the baseline rate for each of the products named in the Table to section 11 shall be adjusted in accordance with the following formula:

A + (A × I)

in which,

  “A”  is the baseline rate in effect on the day before the annual adjustment date of the particular year, and

“I”  is the index factor determined in accordance with Schedule 1.

(2) A baseline rate determined under this section shall be rounded to the nearest one-tenth of a cent.

(3) On or before each annual adjustment date, the LCBO shall publish the baseline rates, as adjusted under subsection (1), on its website.

Final determination of minimum retail price

13. (1) If a price determined under this Part ends in a multiple of five cents, then that price becomes the minimum retail price on the annual adjustment date.

(2) If a price determined under this Part does not end in a multiple of five cents, it shall be rounded up to the next multiple of five cents and the price, as rounded up, becomes the minimum retail price on the annual adjustment date.

Part V
Wine and Fortified Wine

Non-application of Part

14. This Part does not apply to wine cooler or cider.

Minimum retail price

15. The minimum retail price for wine and fortified wine is the price set out in Column 2, 3 or 4, as the case may be, for the size of container set out in Column 1 of the Table to this section.

Table
Minimum retail price

Item	Column 1 Container size (mL)	Column 2 Minimum retail price in dollars — wine with 7% or more alcohol content by volume	Column 3 Minimum retail price in dollars — wine with less than 7% alcohol content by volume	Column 4 Minimum retail price in dollars — fortified wine
1.	50	0.60	0.45	0.65
2.	375	4.30	3.20	4.85
3.	750	8.10	6.00	9.35
4.	1000	10.35	7.65	12.00
5.	1500	14.90	11.10	17.45
6.	2000	19.25	14.30	22.65
7.	3000	28.25	20.90	33.30
8.	4000	36.90	27.30	43.60
9.	6000	54.75	40.50	65.10
10.	8000	67.85	50.20	80.75
11.	10,000	81.70	60.45	97.50
12.	16,000	98.80	71.90	126.50
13.	18,000	107.75	78.30	138.95
14.	20,000	117.40	85.05	152.05
15.	50,000	289.10	209.30	375.85

Annual adjustment

16. (1) On each annual adjustment date, the minimum retail price at which each container size of wine and fortified wine set out in the Table to section 15 can be sold shall be adjusted in accordance with the following formula:

A + (A × I)

in which,

  “A”  is the minimum retail price in effect on the day before the annual adjustment date of the particular year, and

“I”  is the index factor determined in accordance with Schedule 1.

(2) On or before each annual adjustment date, the LCBO shall publish the minimum retail prices, as adjusted under subsection (1), on its website.

Other container sizes

17. (1) If wine or fortified wine is sold in a container size other than a container size shown in the Table to section 15, the minimum retail price shall be determined in accordance with the following formula:

A/B × C

in which,

  “A”  is the minimum retail price in effect for the container size shown in the Table that is next smaller than the container that is not shown,

  “B”  is the size, in millilitres, of the container shown in the Table that is next smaller than the container that is not shown, and

  “C”  is the size, in millilitres, of the container that is not shown.

(2) If a minimum retail price for a container size calculated under subsection (1) is higher than the minimum retail price in effect for the container size shown in the Table to section 15 that is next larger than the container size in respect of which the calculation is made, then the minimum retail price for the container shall be the minimum retail price in effect for the container size shown in the Table that is next larger than the container size in respect of which the calculation is made.

Final determination of minimum retail price

18. (1) If a price determined under this Part ends in a multiple of five cents, then that price becomes the minimum retail price on the annual adjustment date.

(2) If a price determined under this Part does not end in a multiple of five cents, it shall be rounded up to the next multiple of five cents and the price, as rounded up, becomes the minimum retail price on the annual adjustment date.

Part VI
Miscellaneous

New products

19. (1) Before selling liquor that is not Class A spirits, Class B spirits, Class C spirits, beer, wine cooler, wine, fortified wine or cider, the LCBO shall set a minimum retail price for the liquor.

(2) In setting a minimum retail price under subsection (1), the LCBO shall have regard to the liquors to which Parts III, IV and V apply and shall set a minimum retail price for the liquor consistent with the price then in effect for the class that the liquor most closely resembles.

(3) The LCBO shall advise the Minister of Finance in writing after setting a minimum retail price under this section.

Exceptions

20. (1) Despite any provision of the Act or this Regulation, the LCBO may sell any liquor below the minimum retail price required by this Regulation to any of the following:

1.  Her Majesty the Queen in right of Canada, but only in respect of sales made through the LCBO’s Specialty Services department.

2.  A diplomatic mission or consular post of a foreign state that is officially recognized by Canada, but only in respect of sales made through the LCBO’s Specialty Services department.

3.  An international organization as defined in the Foreign Missions and International Organizations Act (Canada), but only to the extent specified in an order made under section 5 of that Act and only in respect of sales made through the LCBO’s Specialty Services department.

4.  The holder of a NATO liquor permit issued by the LCBO, but only if the holder is purchasing in accordance with the terms of the permit.

(2) Despite any provision of the Act or this Regulation, the LCBO may authorize, in writing, the sale of a particular class, variety or brand of liquor, other than beer, for a price that is below the minimum retail price required by this Regulation for that class, variety or brand if the same price reduction will be made at all retail stores and if, in the opinion of the LCBO, the sale is necessary,

(a)  to clear a product that is being delisted;

(b)  to clear a product that will soon become unsellable because of age or shelf life; or

(c)  because it is part of a plan to permanently reduce inventory of that product.

(3) Despite any provision of the Act or this Regulation, but subject to subsection (4), the LCBO may authorize, in writing, the sale of a particular class, variety or brand of liquor, other than beer, for a price that is below the minimum price required by this Regulation for that class, variety or brand at a retail store specified in the authorization if, in the opinion of the LCBO, the sale is necessary,

(a)  to clear a product that will soon become unsellable because of age or shelf life; or

(b)  because it is part of a plan to permanently reduce inventory of that product in that store.

(4) A sale described in subsection (3) may not be at a price that is less than 70 per cent of the minimum retail price required by this Regulation for that class, variety or brand of liquor, and may not last for more than four weeks.

Part VII
commencement

Commencement

21. This Regulation comes into force on the later of the day paragraph 4 of subsection 78 (1) of Schedule 22 (Liquor Licence and Control Act, 2019) to the Plan to Build Ontario Together Act, 2019 comes into force and the day this Regulation is filed.

Schedule 1
Index Factor

1. For the purposes of this Regulation, the index factor is the greater of zero and the value calculated using the following formula, rounded to the nearest thousandth:

[(B/C + C/D + D/E) / 3] − 1

in which,

  “B”  is the Consumer Price Index for the 12-month period ending the previous November 30,

  “C”  is the Consumer Price Index for the 12-month period preceding the 12-month period mentioned in the description of “B”,

  “D”  is the Consumer Price Index for the 12-month period preceding the 12-month period mentioned in the description of “C”, and

  “E”  is the Consumer Price Index for the 12-month period preceding the 12-month period mentioned in the description of “D”.

2. For the purposes of this Schedule, the Consumer Price Index for a 12-month period is the result arrived at by,

(a)  determining the sum of the Consumer Price Index for Ontario (All Items) as published by Statistics Canada under the authority of the Statistics Act (Canada) for each month in that period;

(b)  dividing the sum obtained under clause (a) by 12; and

(c)  rounding the result obtained under clause (b) to the nearest tenth.

 

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