Ontario’s budget watchdog, the Financial Accountability Officer, is conducting a thorough investigation into the Ford government’s alcohol expansion policies. This investigation comes after the province agreed to pay $225 million to end an exclusivity contract with The Beer Store, allowing beer and wine to be sold in corner stores. The FAO will also assess how much revenue the provincially-owned LCBO stands to lose as a result of convenience, grocery, and big box stores offering a wider variety of alcohol. Critics of the government believe that this independent review will provide taxpayers with a clearer understanding of the total cost of the alcohol expansion plan.
There has been significant debate surrounding the cost of the government’s plan to liberalize the sale of alcohol. While the government has only disclosed the $225 million payment to The Beer Store, the Liberals claim that the total cost exceeds $1 billion due to lost revenue, missed opportunities, and the fee paid to The Beer Store. The province has made two significant announcements in the past year regarding the expansion of alcohol sales, first by announcing increased availability of beer and wine by early 2026, and then by fast-tracking the end of The Beer Store exclusivity agreement to fulfill an election promise.
In May, the province agreed to pay The Beer Store up to $225 million in added costs related to the increased sale of alcohol in convenience and additional grocery stores. The Ontario Liberals argue that the final cost will exceed $1 billion when factoring in the payment to The Beer Store, LCBO rebate fees, a wholesaler discount, and lost license fees. Finance Minister Peter Bethlenfalvy has disputed these claims, calling them “made-up numbers,” and has committed to providing updates on the cost through quarterly financial briefings. Premier Ford has defended the agreement, calling it a “great deal” for the province and accusing his political opponents of wanting to increase the cost of alcohol.
As part of the investigation, the Financial Accountability Officer will assess the financial costs and benefits of the accelerated expansion of alcohol sales in Ontario. The scope of the investigation is limited to direct financial impacts and will not include other potential consequences of increased alcohol availability, such as health, social, or safety outcomes. The report is expected to be completed by early 2025, providing taxpayers with a comprehensive analysis of the financial implications of the alcohol expansion plan.
