After months of speculation and controversy, the Liquor Control Board of Ontario (LCBO) has officially dropped its pilot project to sell beer and wine in select grocery stores. This decision was revealed in documents obtained through a Freedom of Information (FOI) request by CBC News.
The pilot project, which began in 2015, allowed for the sale of beer and wine in 450 grocery stores across the province. However, the documents obtained by CBC News show that the LCBO had concerns about the project’s profitability and sustainability from the very beginning.
According to the documents, the LCBO projected a loss of $1.5 million in the first year of the pilot project, with a potential loss of $5 million in the second year. These projections were based on the high costs of implementing the project, including training and equipment for grocery store staff.
In addition, the documents also reveal that the LCBO had concerns about the impact of the pilot project on its own sales. The LCBO feared that the sale of beer and wine in grocery stores would lead to a decrease in sales at their own stores, resulting in a loss of revenue.
Despite these concerns, the pilot project continued for five years, with the LCBO reporting a loss of $2.1 million in the first year and $4.1 million in the second year. However, the documents obtained by CBC News show that the LCBO had been considering dropping the project since 2017.
In a statement to CBC News, the LCBO confirmed that the pilot project has been discontinued, citing “financial considerations” as the reason for the decision. The LCBO also stated that they will continue to work with the government and stakeholders to ensure the responsible sale of alcohol in Ontario.
This decision has been met with mixed reactions from both the grocery store industry and the public. While some are disappointed to see the convenience of purchasing beer and wine in grocery stores come to an end, others are relieved that the LCBO has taken steps to protect its own sales and revenue.
In conclusion, the LCBO’s decision to drop the pilot project to sell beer and wine in grocery stores has been a long time coming. The documents obtained through the FOI request have shed light on the financial concerns and considerations that ultimately led to this decision. It remains to be seen what the future holds for the sale of alcohol in Ontario, but for now, the LCBO will continue to be the primary retailer for beer and wine in the province.
