Premier Doug Ford’s decision to speed up the rollout of alcohol sales in corner stores – which first sparked early election speculation last spring – will cost the province more than $600 million, Ontario’s budget watchdog said Monday.
That’s nearly three times the amount the Progressive Conservative government said it would cost to accelerate the timeline.
The Financial Accountability Officer wrote in a report Monday that the expansion of beer, wine and coolers to convenience stores, big box stores and more grocery stores will cost $1.4 billion through to 2030, and $612 million of that is due to the sped-up timing.
However, that could be much higher or much lower depending on rates of alcohol consumption and consumer behaviour, Jeffrey Novak wrote in his report.
“The actual financial cost to the province will depend on how retailers and consumers respond to the expansion of the beverage alcohol marketplace,” he wrote.
“After accounting for these and other factors, the FAO estimates that the financial cost to the province could range from $529 million to $1.9 billion through to December 31, 2030.”
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Ford’s previous plan was to expand sales of those alcoholic offerings by 2026, but in May he announced that would instead happen in 2024.
The province said an “early implementation agreement” with The Beer Store involves Ontario paying the company up to $225 million to help it keep stores open and workers employed.
Novak said there will also be a $215-million cost as a result of lower tax revenues as grocery, big box and convenience stores are not subject to beer, wine and spirits taxes.
As well, Novak said there will be $172 million in lower net income to the Liquor Control Board of Ontario. While there will be a $1.1 billion increase in wholesale LCBO revenue, there will also be an approximately $812 million decline in LCBO retail revenue, a $192 million cost to give wholesale discounts to new retailers, $150 million in service rebates to brewers, $105 million in higher operating expenses, and $22 million in higher recycling fees.
The report landed just days before Ford has indicated he will call a snap election, well over a year before the June 2026 fixed date, and the opposition pounced on the opportunity to frame the FAO’s findings as evidence of financial mismanagement.
Liberal Leader Bonnie Crombie said it shows Ford has the wrong priorities.
“What a disastrous waste of money. Once again, Doug Ford has been caught red handed,” she wrote in a statement.
“He gave $1.9 billion of your hard earned money to big beer companies and his American billionaire buddies who own 7-11 and Costco, instead of getting people a family doctor.”
© 2025 The Canadian Press
