Some Alcohol Prices in Ontario Could Rise in the New Year
Ontario — Some alcohol prices in Ontario may increase in 2026 as changes to the province’s alcohol system take effect.
Industry groups warn that pricing shifts could affect consumers across the province.
Ontario recently expanded alcohol sales to more locations.
Beer, wine, and ready-to-drink beverages are now available in convenience and grocery stores.
The move aims to modernize alcohol sales and improve access.
However, it has also changed how retailers purchase alcohol.
Temporary Wholesale Discount Set to End
To support businesses during the transition, the province increased the wholesale discount on alcohol.
Bars, restaurants, and convenience stores received a 15 percent discount from the LCBO.
This temporary discount expires on December 31, 2025.
After that, the discount will drop back to 10 percent.
Industry leaders say this change could raise operating costs.
Many businesses may pass those costs on to customers.
Restaurants and small retailers already face tight margins.
As a result, price increases may become unavoidable.
New Pricing Model Planned for 2026
Ontario also plans to introduce a new wholesale pricing structure.
The model would apply taxes and markups earlier in the supply chain.
Retail groups raised concerns about higher shelf prices.
They asked the government to slow the rollout.
The province delayed implementation until April 2026.
Officials say the pause allows more consultation with industry stakeholders.
Some experts hope revisions will reduce consumer impact.
Others remain cautious about long-term price effects.
Recycling System Changes May Add Pressure
Changes to Ontario’s alcohol container recycling system could also affect prices.
Grocery stores were expected to accept empty alcohol containers.
Instead, the province kept recycling responsibilities with The Beer Store.
Grocers may now face additional handling and logistics costs.
Retailers could pass those expenses to shoppers.
This may further increase prices for beer, wine, and coolers.
What Consumers Should Expect
Not all alcohol prices will rise.
Some products may remain stable or vary by retailer.
Still, industry groups warn of gradual increases in 2026.
Consumers may notice higher prices at bars, restaurants, and convenience stores.
Ontario residents are encouraged to stay informed.
Pricing changes will continue as the new system evolves.
