MINIMUM PRICING OF LIQUOR AND OTHER PRICING MATTERS

CONTENTS PART I INTERPRETATION 1. Definitions PART II MINIMUM RETAIL PRICING 3. Minimum retail pricing PART IV BEER, CIDER AND WINE COOLER 9. Minimum retail prices — beer 10. Minimum retail prices — cider, Class C spirits, wine cooler 11. Baseline rate — cider, Class C spirits and wine cooler 12. Annual adjustment 13. Final determination of minimum retail price PART V WINE AND FORTIFIED WINE 14. Non-application of Part 15. Minimum retail price 16. Annual adjustment 17. Other container sizes 18. Final determination of minimum retail price PART VI MISCELLANEOUS 19. New products 20. Exceptions 20.1 Pricing by Brewers Retail Inc. Schedule 1 Index factor Part I Interpretation Definitions 1. (1) In this Regulation, “absolute alcohol” means absolute alcohol as defined in Division 2 of Part B of the Food and Drug Regulations; (“alcool absolu”) “annual adjustment date” means, subject to subsection (2), April 1 in every year; (“date de rajustement annuel”) “cider” means wine produced from apples or pears, or from the concentrated juice of apples or pears, to which is added herbs, water, honey or sugar; (“cidre”) “consumer” means a person who purchases liquor in Ontario, (a) for use or consumption by the person or by someone else at the person’s expense, or (b) on behalf of or as an agent for a principal who desires to acquire the liquor for use or consumption by the principal or by someone else at the principal’s expense; (“consommateur”) “draft beer” means beer for sale in a container that has a capacity of 18 litres or more; (“bière pression”) “draft cider” means cider for sale in a container that has a capacity of 18 litres or more; (“cidre pression”) “Food and Drug Regulations” means the Food and Drug Regulations made under the Food and Drugs Act (Canada); (“Règlement sur les aliments et drogues”) “fortified wine” means wine to which an alcoholic distillate has been added and that contains no more than 20 per cent alcohol by volume; (“vin fortifié”) “minimum retail price” includes all taxes, but does not include any container deposit; (“prix de détail minimum”) “non-draft beer” means beer for sale in containers each of which has a capacity of less than 18 litres; (“bière non pression”) “non-draft cider” means cider for sale in containers each of which has a capacity of less than 18 litres; (“cidre non pression”) “non-refillable container” means a container that the manufacturer of a beverage or other person who initially fills the container with the beverage does not intend to refill, but does not include a beer bottle that is recognized as an industry standard bottle by the Brewers Association of Canada and for which the manufacturer has entered into an agreement with the Association for the use of the bottle; (“contenant à remplissage unique”) “wine cooler” means a beverage made from wine to which flavouring, colouring, sugar or other additives have been added and contains no more than 7 per cent alcohol by volume. (“vin panaché”) O. Reg. 750/21, s. 1 (1); O. Reg. 199/24, s. 1 (1); O. Reg. 28/25, s. 1. (2) In a year in which April 1 falls on a Saturday or Sunday, the annual adjustment date shall be the following Monday. O. Reg. 750/21, s. 1 (2); O. Reg. 199/24, s. 1 (2). PART II MINIMUM RETAIL PRICING 2. Revoked: O. Reg. 199/24, s. 3. Minimum retail pricing 3. (1) Except as otherwise provided in this Regulation, an operator of a retail store shall not offer for sale or sell liquor at a retail price lower than the minimum retail price established in accordance with this Regulation for that type of liquor and container size, plus the container deposit, if any. O. Reg. 750/21, s. 3 (1). (2) Subsection (1) applies only to sales of liquor to a consumer or a person who is buying the liquor pursuant to a permit issued under the Act. O. Reg. 750/21, s. 3 (2). (3) Subsection (1) does not apply to sales of liquor to a person for the purpose of in-store sampling in a retail store. O. Reg. 750/21, s. 3 (3). (3.1) Subsection (1) does not apply in respect of spirits. O. Reg. 28/25, s. 2. (4) For the purposes of this section, if the purchase of liquor is paid for, in whole or in part, using benefits issued under a loyalty program or rewards marketing program and either or both of the following circumstances exist, the price paid for the liquor is deemed to be the price that the retailer would otherwise charge for the liquor: 1. The purchase of the liquor is from the LCBO. 2. The loyalty program or rewards marketing program satisfies the following requirements: i. Rewards for the purchase of alcohol and reward redemptions that include alcohol are not subject to special offers or bonuses. ii. No financial or monetary benefit is received, directly or indirectly, by the operator of the program from a liquor manufacturer or from a person acting on the manufacturer’s behalf. O. Reg. 199/24, s. 4. 4. Revoked: O. Reg. 199/24, s. 5. Part III Revoked: O. Reg. 28/25, s. 3. Part IV Beer, Cider and wine cooler Minimum retail prices — beer 9. (1) The minimum retail price for non-draft beer that contains less than 5.6 per cent alcohol by volume is $2.816 per litre. (2) The minimum retail prices for non-draft beer that contains 5.6 per cent or more alcohol by volume are the following: 1. For non-draft beer sold in a refillable container, $67.90 per litre of absolute alcohol in the non-draft beer. 2. For non-draft beer sold in a non-refillable container, the sum of the amount determined under paragraph 1 plus the following amounts: i. 8.93 cents per non-refillable container. ii. An amount equal to the harmonized sales tax that would be payable by a purchaser under Part IX of the Excise Tax Act (Canada) in respect of the amount described in subparagraph i. iii. An amount equal to 4 per cent of 8.93 cents per non-refillable container. (3) The minimum retail prices for draft beer are the following: 1. For draft beer sold in a refillable container, $2.835 per litre of draft beer. 2. For draft beer sold in a non-refillable container, the sum of the amount determined under paragraph 1 plus the following amounts: i. 8.93 cents per non-refillable container. ii. An amount equal to the harmonized sales tax that would be payable by a purchaser under Part IX of the Excise Tax Act (Canada) in respect of the amount described in subparagraph i. iii. An amount equal to 4 per cent of 8.93 cents per non-refillable container. Minimum retail prices — cider, Class C spirits, wine cooler 10. The minimum retail prices for non-draft cider, draft cider and wine cooler are the following: 1. For a product sold in a refillable container, the applicable baseline rate set out in the Table to section 11. 2. For a product sold in a non-refillable container, the sum of the amount determined under paragraph 1 plus the following amounts: i. 8.93 cents per non-refillable container. ii. An amount equal to the harmonized sales tax that would be payable by a purchaser under Part IX of the Excise Tax Act (Canada) in respect of the amount described in subparagraph i. iii. An amount equal to 4 per cent of 8.93 cents per non-refillable container. O. Reg. 750/21, s. 10; O. Reg. 28/25, s. 5. Baseline rate — cider, Class C spirits and wine cooler 11. The baseline rate for cider and wine cooler is the rate set out in Column 2 of the Table to this section set out opposite the alcohol content by volume of the product in Column 1. TABLE BASELINE RATES Item Column 1 Product, alcohol content by volume Column 2 Baseline rate 1. Draft cider, any alcohol content $2.994 per litre 2. Non-draft cider, less than 4.1% $3.709 per litre 3. Non-draft cider, 4.1 to less than 4.9% $3.763 per litre 4. Non-draft cider, 4.9 to less than 5.6% $3.862 per litre 5. Non-draft cider, 5.6% or more $71.703 per litre of absolute alcohol 10. Wine cooler, less than 4.1% $3.709 per litre 11. Wine cooler, 4.1 to less than 4.9% $3.763 per litre 12. Wine cooler, 4.9 to less than 5.6% $3.862 per litre 13. Wine cooler, 5.6% or more $71.703 per litre of absolute alcohol O. Reg. 750/21, s. 11; O. Reg. 28/25, s. 6. Annual adjustment 12. (1) On each annual adjustment date, the baseline rate for each of the products named in the Table to section 11 shall be adjusted in accordance with the following formula: A + (A × I) in which, “A” is the baseline rate in effect on the day before the annual adjustment date of the particular year, and “I” is the index factor determined in accordance with Schedule 1. (2) A baseline rate determined under this section shall be rounded to the nearest one-tenth of a cent. (3) On or before each annual adjustment date, the LCBO shall publish the baseline rates, as adjusted under subsection (1), on its website. Final determination of minimum retail price 13. (1) If a price determined under this Part ends in a multiple of five cents, then that price becomes the minimum retail price on the annual adjustment date. (2) If a price determined under this Part does not end in a multiple of five cents, it shall be rounded up to the next multiple of five cents and the price, as rounded up, becomes the minimum retail price on the annual adjustment date. Part V Wine and Fortified Wine Non-application of Part 14. This Part does not apply to wine cooler or cider. Minimum retail price 15. The minimum retail price for wine and fortified wine is the price set out in Column 2, 3 or 4, as the case may be, for the size of container set out in Column 1 of the Table to this section. Table Minimum retail price Item Column 1 Container size (mL) Column 2 Minimum retail price in dollars — wine with 7% or more alcohol content by volume Column 3 Minimum retail price in dollars — wine with less than 7% alcohol content by volume Column 4 Minimum retail price in dollars — fortified wine 1. 50 0.60 0.45 0.65 2. 375 4.30 3.20 4.85 3. 750 8.10 6.00 9.35 4. 1000 10.35 7.65 12.00 5. 1500 14.90 11.10 17.45 6. 2000 19.25 14.30 22.65 7. 3000 28.25 20.90 33.30 8. 4000 36.90 27.30 43.60 9. 6000 54.75 40.50 65.10 10. 8000 67.85 50.20 80.75 11. 10,000 81.70 60.45 97.50 12. 16,000 98.80 71.90 126.50 13. 18,000 107.75 78.30 138.95 14. 20,000 117.40 85.05 152.05 15. 50,000 289.10 209.30 375.85 Annual adjustment 16. (1) On each annual adjustment date, the minimum retail price at which each container size of wine and fortified wine set out in the Table to section 15 can be sold shall be adjusted in accordance with the following formula: A + (A × I) in which, “A” is the minimum retail price in effect on the day before the annual adjustment date of the particular year, and “I” is the index factor determined in accordance with Schedule 1. (2) On or before each annual adjustment date, the LCBO shall publish the minimum retail prices, as adjusted under subsection (1), on its website. Other container sizes 17. (1) If wine or fortified wine is sold in a container size other than a container size shown in the Table to section 15, the minimum retail price shall be determined in accordance with the following formula: A/B × C in which, “A” is the minimum retail price in effect for the container size shown in the Table that is next smaller than the container that is not shown, “B” is the size, in millilitres, of the container shown in the Table that is next smaller than the container that is not shown, and “C” is the size, in millilitres, of the container that is not shown. (2) If a minimum retail price for a container size calculated under subsection (1) is higher than the minimum retail price in effect for the container size shown in the Table to section 15 that is next larger than the container size in respect of which the calculation is made, then the minimum retail price for the container shall be the minimum retail price in effect for the container size shown in the Table that is next larger than the container size in respect of which the calculation is made. Final determination of minimum retail price 18. (1) If a price determined under this Part ends in a multiple of five cents, then that price becomes the minimum retail price on the annual adjustment date. (2) If a price determined under this Part does not end in a multiple of five cents, it shall be rounded up to the next multiple of five cents and the price, as rounded up, becomes the minimum retail price on the annual adjustment date. Part VI Miscellaneous New products 19. (1) Before selling liquor that is not spirits, beer, wine cooler, wine, fortified wine or cider, the LCBO shall set a minimum retail price for the liquor. O. Reg. 750/21, s. 19 (1); O. Reg. 28/25, s. 7 (1). (2) In setting a minimum retail price under subsection (1), the LCBO shall have regard to the minimum retail prices that apply to liquor to which Parts IV and V apply and to spirits, if any, and shall set a minimum retail price for the liquor consistent with the price then in effect, if any, for the class that the liquor most closely resembles. O. Reg. 28/25, s. 7(2). (3) The LCBO shall advise the Minister of Finance in writing after setting a minimum retail price under this section. O. Reg. 750/21, s. 19 (3). Exceptions 20. (1) Despite any provision of the Act or this Regulation, the LCBO may sell any liquor below the minimum retail price required by this Regulation to any of the following: 1. The Crown in right of Canada, but only in respect of sales made through the LCBO’s Specialty Services department. 2. A diplomatic mission or consular post of a foreign state that is officially recognized by Canada, but only in respect of sales made through the LCBO’s Specialty Services department. 3. An international organization as defined in the Foreign Missions and International Organizations Act (Canada), but only to the extent specified in an order made under section 5 of that Act and only in respect of sales made through the LCBO’s Specialty Services department. 4. The holder of a NATO liquor permit issued by the LCBO, but only if the holder is purchasing in accordance with the terms of the permit. O. Reg. 750/21, s. 20 (1). (2) Despite any provision of the Act or this Regulation, the LCBO may authorize, in writing, the sale of a particular class, variety or brand of liquor, other than beer, for a price that is below the minimum retail price required by this Regulation for that class, variety or brand if, in the opinion of the LCBO, the sale is necessary, (a) to clear a product that is being delisted; (b) to clear a product that will soon become unsellable because of age or shelf life; or (c) because it is part of a plan to permanently reduce inventory of that product. O. Reg. 750/21, s. 20 (2); O. Reg. 199/24, s. 6 (1). (3), (4) Revoked: O. Reg. 199/24, s. 6 (2). Pricing by Brewers Retail Inc. 20.1 (1) The holder of the Brewers Retail Inc. licence, and the owners of the holder of the Brewers Retail Inc. licence, are directed and authorized to set retail prices for liquor sold at stores operated under the Brewers Retail Inc. licence, which may be different from the retail prices charged by operators of other retail stores. O. Reg. 199/24, s. 7. (2) Prices set under subsection (1) must be calculated using a methodology that does not distinguish based on manufacturer. O. Reg. 199/24, s. 7. PART VII (OMItted) 21. Omitted (provides for coming into force of provisions of this Regulation). Schedule 1 Index Factor 1. For the purposes of this Regulation, the index factor is the greater of zero and the value calculated using the following formula, rounded to the nearest thousandth: [(B/C + C/D + D/E) / 3] − 1 in which, “B” is the Consumer Price Index for the 12-month period ending the previous November 30, “C” is the Consumer Price Index for the 12-month period preceding the 12-month period mentioned in the description of “B”, “D” is the Consumer Price Index for the 12-month period preceding the 12-month period mentioned in the description of “C”, and “E” is the Consumer Price Index for the 12-month period preceding the 12-month period mentioned in the description of “D”. 2. For the purposes of this Schedule, the Consumer Price Index for a 12-month period is the result arrived at by, (a) determining the sum of the Consumer Price Index for Ontario (All Items) as published by Statistics Canada under the authority of the Statistics Act (Canada) for each month in that period; (b) dividing the sum obtained under clause (a) by 12; and (c) rounding the result obtained under clause (b) to the nearest tenth.