In 2023, the provincial government announced the modernization of the marketplace to create more convenience and choice for consumers. In addition to more retailers selling alcohol, it was announced that LCBO will become the exclusive wholesaler for all retail, bars and restaurants selling alcohol starting January 2026, and a new ‘cost-plus’ wholesale pricing would be developed that was consistent for all retailers.
At the same time, LCBO has embarked on a multi-year program called Future State Modernization (FSM) that will strengthen our IT systems, and streamline our business processes, improving our operations for our company and our stakeholders.
FSM is a critical enabler of marketplace modernization, and both will result in changes for suppliers in the coming months.
Key changes for LCOs starting January 1, 2026
- In January 2026, LCBO will become the exclusive wholesaler to LCOs, which means that LCOs will now purchase products, including domestic beer, through the LCBO or via domestic suppliers who have been authorized as part of LCBO’s Direct Delivery Program.
- As directed by the provincial government, LCBO is implementing a new wholesale pricing model based on a formula that adds taxes, mark-ups, and fees to the supplier’s quote. The new pricing model closely aligns with industry standard best practices and will streamline and simplify the current wholesale pricing model.
- There will be targeted enhancements to wholesale.lcbo.com, improved fill rates for LCBO-supplied products and more Ontario suppliers managing fulfillment and delivery of LCO orders.
- We will be streamlining the way you submit claims; they will now be submitted through wholesale.lcbo.com. Expect training in mid-to-late November.
- Any refunds for valid claims (including damaged product and product recalls) will be refunded directly to your bank account.
- Dropshipping will be introduced, which means that if you purchase select Ontario-made products on wholesale.lcbo.com, they may be shipped directly from the alcohol supplier.
Plan early for temporary data and online ordering freezes
While LCBO transforms its business and implements new technologies, there will be a migration period where new information cannot flow into our systems. As a result, data, orders and payments will be paused for a brief period in December as follows.
- Between 5 pm on November 28 and December 28, LCBO will not be able to update any customer information – this includes contact details, new customer set up, and invoicing and delivery terms. We kindly request that you submit any known/anticipated changes by November 15 to allow our teams time to make all updates before the November 28 cutoff.
- LCBO Convenience Outlets will not be able to place online orders for delivery between December 18th at 6pm and December 31. Ordering will resume based on your regular ordering schedule starting January 1.
- January 9 is the last date to submit a claim on the B2B Claims App.
- We recognize that LCOs have unique considerations when it comes to building inventory in advance of ordering freeze. We are working on solutions for LCBO-supplied products and are working collaboratively with The Beer Store on solutions for domestic beer. More information will be shared when available.
What can LCOs continue doing through to December 31:
- Order beer from domestic manufacturers and The Beer Store
- Order domestic product through LCBO’s Direct Delivery Program
