Costco and Other Grocery Retailers in Ontario Granted Permission to Sell Alcohol

The Ontario government has officially authorized all licensed grocery and big-box retailers, including Costco, to sell alcohol, expanding the range of beverages available for purchase. This announcement marks the final phase of a three-phase rollout that began with a limited number of retailers permitted to sell beer, cider, and wine.

As part of the new regulations, stores can now sell ready-to-drink alcoholic beverages and stock larger pack sizes, up to 30-packs. This change comes after the expiration of the Master Framework Agreement in 2025, which had restricted alcohol sales to a limited number of outlets.

The government plans to conduct a review of taxes, mark-ups, and fees associated with alcoholic beverages to ensure a competitive market environment, with findings expected by the end of the year. Earlier phases of this rollout began on July 18, when 450 grocery stores were granted the ability to sell ready-to-drink products, followed by convenience stores receiving the same rights in September.

Premier Doug Ford highlighted that this expansion will create new opportunities for retailers and support Ontario’s local producers of beer, wine, cider, and ready-to-drink beverages. The Liquor Control Board of Ontario will also focus on promoting small and locally made products.

To further ensure responsible consumption, the government is investing $10 million over the next five years to support public health initiatives related to alcohol sales. Retail Council of Canada CEO Diane Brisebois emphasized that the inclusion of grocery stores in alcohol sales is a significant advancement, promoting the diversity of local alcoholic products in the market.