What’s Next for Alcohol Retail in Ontario? Our Predictions for 2025 and Beyond
Ontario convenience and grocery stores began selling beer, wine, cider, and ready-to-drink beverages in September 2024, marking a major shift in how alcohol is retailed in the province. This expansion is expected to continue well into 2025 and beyond, offering new opportunities — and responsibilities — for independent store owners. Here's a deeper look at what’s changing and how retailers can stay ahead.
Ontario’s New Alcohol Retail Landscape
As of early 2025, thousands of convenience and grocery stores across Ontario are now licensed to sell beer, wine, cider, and RTD beverages. This is part of a broader plan to decentralize alcohol sales and make them more accessible to the public.
The Ontario government has committed to having all participating convenience, grocery, and big-box stores licensed by January 1, 2026. These locations will be permitted to sell a wide range of formats, from single cans to full cases. Spirits, however, will remain exclusive to LCBO stores for the foreseeable future.
This transition is transforming how Ontarians purchase alcohol — and how store owners operate. While the opportunity for increased revenue is clear, so is the need for strong compliance with AGCO regulations.
Trends to Watch in 2025 and Beyond
A Surge in Retail Outlets — and Competition
- Over 8,000 convenience and grocery stores are expected to be licensed for alcohol sales
- Competition will intensify as more players enter the market
- Independent stores will need to differentiate through service, selection, and community engagement
Rising Demand for RTDs and Local Products
- Consumer tastes are shifting toward ready-to-drink cocktails, hard seltzers, and craft products
- A mandated portion of shelf space must be reserved for local Ontario producers
- Supporting local aligns with current consumer sentiment and compliance obligations
Increased Scrutiny and the Importance of Training
- AGCO is actively monitoring for compliance: ID checks, service refusal, hours of sale, signage, etc.
- Staff training is mandatory and must be completed through an AGCO-approved provider
- Training improves customer service, reduces risk, and builds community trust
- Penalties for non-compliance can reach $50,000 and result in licence revocation
Evolution of the Beer Store and LCBO
- The Beer Store may reduce its retail presence as its government agreement expires
- LCBO will likely focus on premium products and retain exclusivity for spirits
- This creates more space for convenience and grocery stores to become go-to destinations for everyday alcohol needs
Changing Consumer Behavior
- Buying alcohol with groceries and snacks is becoming the norm
- Consumers want convenience, value, and variety
- Stocking non-alcoholic options and premium beverages will appeal to a broader audience
How to Prepare Your Store
- Get Licensed – Apply for your AGCO Convenience or Grocery Store Licence if you haven’t already
- Train Your Staff – Use an AGCO-approved program like StoreServe
- Stock Smart – Focus on top sellers, Ontario products, and trending categories like RTDs
- Stay Compliant – Follow regulations for signage, hours, age checks, and storage
- Promote Responsibly – Advertise your new alcohol selection to boost overall basket size
Final Thoughts
The alcohol retail space in Ontario is evolving quickly. For independent convenience and grocery store owners, 2025 and beyond offer significant potential — if approached with the right mix of strategy, compliance, and customer service.
By staying informed, investing in proper training, and adapting to trends, your store can thrive in this new environment.
StoreServe is here to support that journey. Our AGCO-approved training program is affordable, easy to access, and tailored specifically for retail liquor sales in Ontario.
Visit StoreServe.ca to certify your staff and stay compliant.