Earlier this year, the provincial government announced that a new wholesale pricing model would be developed and introduced in January 2026.
LCBO is taking the necessary steps to implement this new model based on a pricing 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. It will become effective January 1, 2026, when LCBO becomes the exclusive wholesaler of beverage alcohol in Ontario.
Click below for more information.
Wholesale Pricing Effective January 1, 2026
Important details
- • Wholesale prices will be calculated based on landed cost + wholesale mark-up + COSD (if applicable) + container deposit + HST.
- • For beer, the wholesale mark-up will be volumetric with different rates for manufacturers and microbrewers as well as product category (draught and non-draught).
- • For all other product categories, the wholesale mark-up will be a fixed percentage of the landed costs based on product category and alcohol by volume (ABV).
- • Uniform wholesale prices will apply to grocery stores, convenience stores, the Beer Store, LCOs, and LCBO retail.
- • For hospitality licensees, the same structure and rates apply. Brewers may continue to set a different quote, which results in a different wholesale price.
- • There are no changes to the pricing structure for the direct delivery program at this time.
- • Alcohol suppliers can adjust their quote before the new pricing model is in effect on January 1. Quotes will be accepted until November 20. Vendors will continue to submit quotes using their current process.
In addition to wholesale pricing changes, LCBO is taking additional steps to enhance our wholesale business. This includes supporting our wholesale customers and suppliers to bring new products to market faster and introducing an open listing process for domestic and imported products by July 1, 2026. We will also open access to products that are currently only available in LCBO retail (with the exception of spirits). In addition, LCBO is exploring changes in distribution to enable private retailers to work with alternative distributors to have their products delivered. More information on these initiatives will be shared later this year.
Upcoming trade information session
LCBO will be hosting a virtual meeting covering upcoming changes related to Future State Modernization and marketplace modernization this week. We encourage you to attend to learn more. If you would like to submit a question in advance of the meeting, click here.