Please be advised of the following updates and changes:
Minimum Retail Price Increases
On Wednesday, March 1, 2023, the minimum retail prices (MRP) for beverage alcohol categories will increase in accordance with Ontario Regulation 750/21 under the Liquor License and Control Act (see here). Please note beer rates remain unchanged from the current rates. These updated rates reflect recent amendments to the regulation governing minimum prices. Similar increases to minimum prices took place in past years. The regulation requires minimum prices to be increased by the three-year average of the Consumer Price Index. Updated pricing calculators can be found here.
For vendors who wish to re-quote, please note the following key dates:
Friday, January 13, 2023 - revised wholesale quote deadline
Monday, January 30, 2023 - wholesale quote revisions effective
Wednesday, March 1, 2023 - retail price effective
Quotes must be e-mailed to firstname.lastname@example.org.
Imported Spirit Pricing (excluding ready-to-drink products)
To align with the new MRP’s, imported spirit vendors will also have their retail price(s) repriced to meet new floor prices effective Wednesday, March 1, 2023.
NEW to this year, LCBO Category teams will be providing each agent representative with a list of impacted SKUs on upcoming LTO promotions from periods 13 to period 4 of the following fiscal year. This list will include requote amounts required to maintain vendor approved LTO values in conjunction with the new MRP floor prices. These quotes will also include any new LAFR rates from the current review which was communicated on December 5, 2022 (more context on LAFR review below). For example, the new floor price for a 750ml spirit is $29.75, if there is an approved LTO amount of $2.00, LCBO will reprice the product to $31.75 (including $0.20 bottle deposit) to maintain LTO depth. The requote communicated will be to achieve the new $31.75 price point. Vendors are asked to provide an updated quote submission form, using the new quote submission form, with the quote amount that is no less than the amount communicated from LCBO Category teams. Vendors can quote a higher cost and choose to requote other non-impacted LTO SKUs on this same form. Should the vendor choose a higher quote price and/or requote other non-impacted LTO SKUs, the new quote will go into effect on the next PO received.
Limited Time Offers (LTO)
For impacted products participating in the LTO program in P13, the retail price will need to be repriced beginning P12 – January 30, 2023, to meet MRP. The LCBO will review P13 and future LCBO promotional programs to ensure that they adhere to the new minimum floor prices. Products on upcoming promotion falling below minimum retail floor price will be cancelled if not adjusted accordingly. Please work with your category representative should you have any questions on this process noted above.
Spirits Price Bands
Please find attached a list of the new corresponding spirits price bands here. To ensure that your product is classified in the appropriate price band and/or to notify the Category Manager of any planned changes to retail price, contact email@example.com for white spirits or firstname.lastname@example.org for brown spirits by Friday January 13, 2023.
LCBO Cost of Service Rates – applicable to ALL beer products
Please be advised that index-linked increases to the LCBO beer in-store and out-of-store cost of service rates will take effect Wednesday March 1, 2023. The revised rates are listed in the table below and can be found in our updated “March 2023” pricing calculators here.
March 1, 2023
In-store cost of service
Out of store cost of service
Out of store cost of service
To administer this change for March 1, the submission schedule for beer price changes will be modified as follows:
- Monday, February 6 – submissions and vendor quotes due by 4 p.m. for March 1 effective date
- Monday, February 13 – no price change submissions will be accepted
- Monday, February 20 – no beer price changes; price change submissions will be accepted on Tuesday, February 21 for March 6 effective date
- Wednesday, March 1 – new rates and retail prices in effect, regular submission, and price change schedule resumes
For brewers of Ontario beer listed at TBS, LCBO, or Grocery
To maintain the current retail price, no action is required. The product will be re-priced to reflect the change in Cost of Service, and the vendor quote will be reduced accordingly with no change to the retail price. If a change in price is desired on March 1, please submit the updated Beer Price Submission form.
For brewers of imported beer
Retail prices will be adjusted on March 1 to reflect the change in Cost of Service. To maintain the current retail price for March 1, a revised wholesale quote is required along with a completed Beer Price Submission form. The quote must state: “The vendor will pay to reduce the cost of inventory on hand and on order.” 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 quotes and beer price submission forms must be submitted via email to email@example.com by the deadlines indicated above.
Logistics Average Freight Rates (LAFR) Review
The quarterly review of the LAFR is complete and vendors impacted by this review have already received notification. Any vendor wishing to adjust their quote because of this review should consider all the above changes when submitting a revised quotes that are due by January 13, 2023.
Domestic Quote Check Courtesy Review
Ontario vendors are encouraged to utilize the tools and pricing calculators, here, on the Trade website to validate and ensure onsite premise pricing is accurate. Effective March 1, 2023, quote submissions from Domestic vendors will be processed as submitted, with no courtesy checks performed to confirm desired retail.
New Vendor Quote Submission Form
As of January 19, 2023, a standard vendor quote submission form must be used when submitting quotes for all General listed Wines, Spirits, Cider, RTD/Coolers, Imported beers and Vintages Essentials products. Please find the new form here on the Trade website. Along with the form is an easy-to-use guide, and general questions and answers on how to complete the form. Please continue to submit all Other Vintages and Specialty Services quotes using the existing documents and processes.
Questions regarding pricing may be directed to firstname.lastname@example.org.
Thank you for your continued support and partnership.