Ontario Regulation 198/24, established under the Liquor Licence and Control Act, 2019, introduces significant amendments to Ontario Regulation 746/21, particularly concerning the licensing of convenience stores and grocery stores.

One of the primary aspects of the regulation is the refinement of definitions within the existing regulatory framework. It establishes clear criteria for defining a convenience store and a grocery store. A convenience store is defined as having no more than 4,000 square feet of retail space, with at least half of that space dedicated to food products (excluding prepared foods for on-site consumption). Additionally, it must offer at least five types of specified food products, such as canned foods, fresh fruits, and dairy products. Conversely, a grocery store is characterized as having more than 4,000 square feet of retail space, with a minimum of 10,000 square feet allocated to food products or at least half of the total retail area.

The regulation also amends several existing definitions to align with these updates. Specifically, the previous definitions of “eligible grocery store,” “geographic region,” “malt-based beverage,” and “wine beverage” have been eliminated, while the definition of “wine boutique” is revised to refer to a grocery store instead of an eligible grocery store. Furthermore, the criteria for qualifying as a small distillery have been refined to focus on sales metrics over a 12-month period and the status of affiliates, streamlining the classification process for smaller manufacturers of spirits.

In terms of licensing, the regulation makes significant revisions to the provisions for grocery and convenience stores. Changes to Section 14 clarify that the new regulations will not apply to applications for grocery store or convenience store licenses submitted before September 1, 2025, allowing existing businesses to operate under the previous licensing rules. Additionally, the regulation clarifies that grocery store licenses can now authorize the sale of beer, wine, and ready-to-drink beverages, thus expanding the range of products available to consumers.

Moreover, amendments extend the scope of activities permitted under various licenses. For instance, grocery store licenses now allow the serving of liquor samples and the delivery of liquor for a fee. Similarly, convenience store licenses permit the sale and delivery of beer, wine, and ready-to-drink beverages, creating a more flexible retail environment that acknowledges changing consumer preferences.

By clarifying definitions, expanding the scope of licensed activities, and instituting transitional provisions, the regulation facilitates a smoother transition into a more accessible and inclusive retail alcohol market while respecting Indigenous governance. These changes exemplify a broader trend toward modernization in alcohol retailing, aiming to improve consumer convenience while maintaining regulatory oversight.

Ontario (198/24) June 5, 2024