Please be advised of the following updates and changes:
Federal Excise Tax
On April 1, 2021, the Federal Excise Tax will increase based on the consumer price index. This increase will be applied to the landed cost of products where applicable. The new rates are published on Excise Duty Rates page of Goverment of Canada's website.
Cost of Service Differential Rates (COSD) Reminder
COSD rates were previously communicated on this website. As a reminder these updated rates will be implemented at the same time as the new Excise rates noted above. When requoting it’s recommended you factor both rate changes into your calculations. Also noted was the change in COSD application which will now be based on item set up country of origin. Details on this process change can be found at the link above.
Key Dates (Updated Quote Submission Deadline – Now March 8)
The new Excise and COSD rates will be applied to new LCBO products and Private Orders starting Thursday, April 1, 2021. LCBO Continuously available and Vintages Essentials products will be re-priced for effective date Monday, April 26, 2021 onwards.
For suppliers of continuously available LCBO or Vintages products who wish to submit revised quotes, please note the following key dates:
*Monday, March 8 - Updated wholesale quote submission deadline*
Thursday, April 1 - wholesale quotes effective
Monday, April 26 - retail prices effective
Retails will automatically be adjusted based on the new Excise and COSD rates effective April 26, 2021. If a Supplier wishes to maintain their current retail on that date, they must submit a **rebate quote letter, separate from their above-mentioned quote filing. The quote letter must state: “The supplier will pay to reduce the cost of inventory on hand and on order”. These rebate quote letters are due by Friday April 2, 2021 for processing and should clearly indicate in the title of the email that this rebate is for the April Excise/COSD Filing.
Please note - if you choose to rebate, two separate quote letters are required: 1. The quote you require posting for April 1st based on the new rates noted above; 2. The rebate quote letter to maintain on shelf pricing based on current pricing variables.
**Rebate letters are ONLY required for products which will INCREASE in price above a desired price point. If a product is working out to LESS than a desired price point due to the changes in Excise/COSD, No rebate letter is required, the price will increase back to the desired price point based on PO receival.**
Key Dates - Beer Price Change Schedule
The submission schedule for beer price changes will be modified to allow for the administration of the increase in federal excise. Once excise rates are confirmed, please use the below timeline as required for pricing updates. Please note COSD rates are not applicable to beer. The schedule is as follows:
- - Tuesday April 6 – Submissions and imported supplier quotes due by 4pm for April 26 change
- - Monday April 12 –no price change submissions will be accepted
- - Monday April 19 – no beer price changes; submissions accepted for May 3 retail effective
- - Monday April 26 – new excise tax rate and retail prices in effect. Regular submission and price change schedules resume
For brewers of domestic beer listed at TBS, LCBO or Grocery
To maintain the current retail price, no action is required. The change in excise tax has no impact on the retail price as domestic beer is purchased “excise paid.” If a change in price is desired, please submit the Beer Price Submission form.
For brewers of imported beer
To maintain the current retail price, a revised wholesale quote is required along with a completed Beer Price Submission form. The quote letter must state: “The supplier will pay to reduce the cost of inventory on hand and on order.” If no revised quote and Beer Price Submission form is received, the new excise tax will be applied to the landed cost and the product will be re-priced accordingly. Please note: For products listed at TBS, no changes will be made to licensee prices or pack-up prices unless requested by the brewer on the Beer Price Submission form. All supplier quotes and beer price submissions must be sent to email@example.com.
Updated Pricing Calculators
Revised April 2021 pricing calculators for ALL products including updated excise and COSD rates are posted on this website's Pricing page.
Questions may be directed to my attention at firstname.lastname@example.org
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