R.R.O. 1990, Reg. 720: MANUFACTURERS' LICENCES

Liquor Licence Act

R.R.O. 1990, REGULATION 720

MANUFACTURERS’ LICENCES

Historical version for the period April 15, 2021 to November 7, 2021.

Last amendment: 282/21.

Legislative History: 236/91, 268/92, 346/92, 401/92, 402/92, 145/94, 366/94, 798/94, 530/95, 166/96, 232/96, 393/96, 526/96, 64/98, 212/98, 248/02, 283/02, 195/07, 352/07, 71/09, 145/11, 98/14, 297/15, 32/16, 96/16, 105/18, 322/19, 728/20 (as am. by 282/21), 282/21.

This is the English version of a bilingual regulation.

1. In this Regulation,

“manufacturer’s licence” means a licence issued under section 22 of the Act; (“permis de fabricant”)

“non-refillable bottle” means a bottle that the manufacturer or the person who bottles a product does not intend to refill and “non-refillable container” has a corresponding meaning. (“bouteille à remplissage unique”)  R.R.O. 1990, Reg. 720, s. 1; O. Reg. 268/92, s. 1.

2. (1) A manufacturer of liquor or an agent or employee of a manufacturer shall not directly or indirectly offer or give a financial or material inducement to a person who holds a licence or permit under the Act or to an agent or employee of the person for the purpose of increasing the sale or distribution of a brand of liquor. R.R.O. 1990, Reg. 720, s. 2 (1).

(1.1) Subsection (1) does not apply to an inducement offered or given by a manufacturer to the holder of a licence to deliver liquor when acting in accordance with an agreement between them that is described in subsection 14 (1.2) of Regulation 718 of the Revised Regulations of Ontario, 1990 (General) made under the Act, if,

(a)  the inducement is intended to facilitate or promote the purchase of liquor from a store to which an authorization under clause 3 (1) (e) of the Liquor Control Act applies that is operated by the manufacturer, or the delivery of liquor from the store by the licence holder, under the agreement; and

(b)  the licence holder does not also hold, directly or indirectly, an authorization to sell beer in a government store under clause 3 (1) (e.1) of the Liquor Control Act. O. Reg. 728/20, s. 1.

(2) A manufacturer of liquor or an agent or employee of the manufacturer shall not directly or indirectly offer to pay or pay any commission, profit or remuneration or make any gift to a member of the Board, an employee of the Alcohol and Gaming Commission of Ontario or to a member or employee of the Licence Appeal Tribunal.  O. Reg. 145/11, s. 1.

3. (1) Except under the authority of a special occasion permit, a manufacturer of liquor shall not give liquor to any person in Ontario.  R.R.O. 1990, Reg. 720, s. 3 (1).

(2) Despite subsection (1), a manufacturer may give liquor to a person if the purpose of the gift is to have the person sample a brand or product or to carry out market research and, in such cases, the manufacturer shall ensure that the sampling and research are conducted in accordance with the guidelines on sampling and market research issued by the Registrar and published on the website of the Alcohol and Gaming Commission of Ontario, as they are amended from time to time.  O. Reg. 283/02, s. 1; O. Reg. 145/11, s. 2 (1); O. Reg. 297/15, s. 1.

(3) Despite subsection (1), a manufacturer may give liquor to the manufacturer’s employee.  R.R.O. 1990, Reg. 720, s. 3 (3).

(4) Despite subsection (1), a manufacturer may give liquor to a person in a place at the manufacturer’s head office or manufacturing site if,

(a)  the place is an indoor place to which the public is not ordinarily invited or permitted access;

(b)  the place is not available for rental by members of the public for occasional use; and

(c)  at the time the liquor is given, the public is not invited or permitted access to the place.  R.R.O. 1990, Reg. 720, s. 3 (4).

(5) Despite subsection (1), a manufacturer of Ontario wine may give liquor to a person at an outdoor place to which the public is not ordinarily invited or permitted access at the manufacturer’s head office or manufacturing site if,

(a)  the place is not available for rental by members of the public for occasional use;

(b)  at the time the liquor is given, the public is not invited or permitted access to the place; and

(c)  the manufacturer has notified the Registrar of the specific location where the liquor is to be given.  O. Reg. 232/96, s. 1; O. Reg. 145/11, s. 2 (2).

(6) Despite subsection (1), a manufacturer may give liquor to,

(a)  a person authorized to conduct a lottery event in accordance with paragraph 207 (1) (b) of the Criminal Code (Canada) where the liquor is a prize to be awarded at the event;

(b)  the holder of a special occasion permit where the special occasion is a fundraising event for the advancement of charitable, educational, religious or community objects conducted by,

(i)  a charitable organization that is registered under the Income Tax Act (Canada), or

(ii)  a non-profit association or organization for the advancement of charitable, educational, religious or community objects.  O. Reg. 248/02, s. 1.

(7) An employee, agent or licensed representative of a manufacturer may give liquor to the persons mentioned in clauses (6) (a) and (b).  O. Reg. 248/02, s. 1.

(8) Where liquor is given under subsection (6), the manufacturer shall,

(a)  keep records of the liquor given, keep the records for two years and provide them to the Registrar upon request;

(b)  upon request, make a written report to the Registrar stating the amount of liquor that was given within 48 hours after the event.  O. Reg. 248/02, s. 1; O. Reg. 145/11, s. 3.

3.1 (1) A manufacturer licensed to sell spirits, beer or Ontario wine to the Liquor Control Board of Ontario under section 22 of the Act is exempted from section 5 of the Act with respect to the requirement to hold a liquor sales licence and may offer for sale or sell liquor to a person without such a licence if, 

(a)  the purpose of the sale is to have the person sample a brand or product of the manufacturer at,

(i)  a government store,

(ii)  a store where the manufacturer is authorized by the Registrar to sell liquor in accordance with clause 3 (1) (e) of the Liquor Control Act, or

(iii)  a store to which an authorization under clause 3 (1) (e.1) of the Liquor Control Act applies;

(b)  the price at which a sample of the liquor is sold remains proportionately below the retail price of that liquor in government stores; and 

(c)  the manufacturer ensures that the sampling is conducted in accordance with the guidelines on sampling set out in the guidelines on sampling and market research issued by the Registrar and published on the website of the Alcohol and Gaming Commission of Ontario, as they are amended from time to time.  O. Reg. 195/07, s. 1; O. Reg. 145/11, s. 3; O. Reg. 297/15, s. 2 (1, 2).

(2) Revoked:  O. Reg. 297/15, s. 2 (3).

3.1.1 A manufacturer of liquor shall ensure that any person who, under section 3 or 3.1, provides samples of liquor on behalf of the manufacturer holds a certificate demonstrating the successful completion of a server training course approved by the Board. O. Reg. 32/16, s. 1.

3.2 (1) In this section,

“farmers’ market” means a central location at which a group of persons who operate stalls or other food premises meet to sell or offer for sale to consumers products that include, without being restricted to, farm products, baked goods and preserved foods, and at which a substantial number of the persons operating the stalls or other food premises are producers of farm products who are primarily selling or offering for sale their own products; (“marché de producteurs”)

“production site” means, in relation to a manufacturer, property that is used by the manufacturer primarily for the alcoholic fermentation and production of beer or Ontario wine or the distillation and production of spirits. (“lieu de production”) O. Reg. 728/20, s. 2 (1); O. Reg. 282/21, s. 1 (1).

(1.1) This section applies with respect to spirits only if at least 50 per cent of the volume of spirits in the container holding them is made, from start to finish, at a production site in Ontario. O. Reg. 728/20, s. 2 (1).

(1.2) This section applies with respect to Ontario wine that is produced using any combination of the concentrated juice of apples only if all of the apples were grown in Ontario. O. Reg. 728/20, s. 2 (1).

(1.3) This section applies with respect to beer only if the full brewing process takes place at a production site in Ontario. O. Reg. 282/21, s. 1 (2).

(2) If the holder of a manufacturer’s licence manufactures spirits, beer or Ontario wine, and if the Registrar, under clause 3 (1) (e) of the Liquor Control Act, authorizes the manufacturer to sell the spirits, beer or Ontario wine at an occasional extension of a distillery retail store, brewery retail store or winery retail store that the manufacturer owns and operates at its production site, where the extension is within a farmers’ market, the manufacturer’s licence is subject to the following conditions:

1.  The manufacturer shall comply with any authorization of the Registrar relating to the store.

2.  The municipality, if any, in which the farmers’ market is located has not advised the Registrar in writing that it objects to the sale.

3.  The manufacturer shall provide the Registrar with notice of the location and dates of the intended sales in advance.

4.  The manufacturer shall ensure that its spirits, beer or Ontario wine that is offered for sale at the farmers’ market and that is not sold is returned to the manufacturer’s store within 72 hours from the time it leaves the manufacturer’s store.

5.  The manufacturer shall ensure that any sampling that it conducts in conjunction with the sale is conducted in accordance with the guidelines on sampling and market research issued by the Registrar and published on the website of the Alcohol and Gaming Commission of Ontario, as they are amended from time to time.

6.  The manufacturer shall ensure that any person involved in the sale or sampling of liquor holds a certificate demonstrating the successful completion of a server training course approved by the Board. O. Reg. 98/14, s. 1; O. Reg. 297/15, s. 3 (3); O. Reg. 96/16, s. 1 (2, 3); O. Reg. 105/18, s. 1 (2, 3); O. Reg. 322/19, s. 1; O. Reg. 728/20, s. 2 (2, 3); O. Reg. 282/21, s. 1 (3, 4).

(3) Revoked: O. Reg. 297/15, s. 3 (4).

(4) Nothing in this section authorizes the establishment or operation of farmers’ markets at which all or a substantial number of the products sold or offered for sale are one or more of spirits, beer or Ontario wine. O. Reg. 98/14, s. 1; O. Reg. 96/16, s. 1 (4); O. Reg. 105/18, s. 1 (4); O. Reg. 728/20, s. 2 (4); O. Reg. 282/21, s. 1 (5).

4. A holder of a manufacturer’s licence shall not mix or permit or cause to be mixed with any liquor kept for sale, sold or supplied by the manufacturer a drug, a form of methylic alcohol, a crude, unrectified or impure form of ethylic alcohol or any other deleterious substance or liquid.  R.R.O. 1990, Reg. 720, s. 4.

5. (1) In this section,

“public service advertising” means any advertising carrying a strong message against irresponsible use of liquor where the message does not contain any direct or indirect endorsement of liquor, the brand name of liquor or of the consumption of liquor.  O. Reg. 248/02, s. 2.

(2) Except for public service advertising, a manufacturer may advertise or promote liquor or the availability of liquor only if the advertising,

(a)  is consistent with the principle of depicting responsibility in use or service of liquor;

(b)  promotes a general brand or type of liquor and not the consumption of liquor in general;

(c)  does not imply that consumption of liquor is required in obtaining or enhancing,

(i)  social, professional or personal success,

(ii)  athletic prowess,

(iii)  sexual prowess, opportunity or appeal,

(iv)  enjoyment of any activity,

(v)  fulfilment of any goal, or

(vi)  resolution of social, physical or personal problems;

(d)  does not appeal, either directly or indirectly, to persons under the legal drinking age or is not placed in media that are targeted specifically at people under that age;

(e)  does not associate consumption of liquor with driving a motorized vehicle, or with any other activity that requires care and skill or has elements of danger;

(f)  does not depict motorized vehicles in motion in advertising showing consumption of liquor, unless the motorized vehicle is a form of public transportation;

(g)  does not suggest any illegal sale, illegal purchase, illegal gift, illegal handling or illegal consumption of liquor; and

(h)  is in compliance with the guidelines related to advertising issued by the Registrar and published on the website of the Alcohol and Gaming Commission of Ontario, as they are amended from time to time.  O. Reg. 248/02, s. 2; O. Reg. 283/02, s. 2; O. Reg. 145/11, s. 3; O. Reg. 297/15, s. 4.

(3) When premises to which a licence applies are used as a setting for a film or television production, the licence holder may show the name of the establishment if the licence holder complies with the requirements set out in subsection (2).  O. Reg. 248/02, s. 2.

6. A holder of a manufacturer’s licence shall provide to the Liquor Control Board of Ontario such samples of the manufacturer’s products as are required by the Liquor Control Board of Ontario.  R.R.O. 1990, Reg. 720, s. 6.

7. A manufacturer who is required under the Act to maintain books and records shall keep them in Ontario for a period of at least six years and shall notify the Registrar where they are kept for purposes of inspection under the Act.  O. Reg. 352/07, s. 1; O. Reg. 145/11, s. 3.

8. A holder of a manufacturer’s licence shall provide the Registrar with the financial information he or she requires concerning the activities of persons who hold licences to represent the manufacturer or the advertising and promotional activities of the manufacturer.  O. Reg. 64/98, s. 2; O. Reg. 145/11, s. 3.

9. (1) A manufacturer of beer shall affix to each container of beer a label showing the nature of the contents, the name of the manufacturer and the place where the beer was brewed.  R.R.O. 1990, Reg. 720, s. 9 (1).

(2) For the purpose of subsection (1), the nature of the contents of the container must be designated by the words “beer”, “ale”, “stout”, “porter” or “lager”.  R.R.O. 1990, Reg. 720, s. 9 (2).

9.1 (1) In this section,

“spirits term” means the words “brandy”, “cognac”, “gin”, “grappa”, “liqueur”, “marc”, “mescal”, “pisco”, “pomace”, “rum”, “tequila”, “vodka”, “whisky” or any variation of those words that has the same meaning.  O. Reg. 71/09, s. 1.

(2) A manufacturer of beer or wine shall not use a spirits term on labels, packaging or containers of liquor sold or kept for sale at a government store, a store to which an authorization under clause 3 (1) (e) or (e.1) of the Liquor Control Act applies or in any advertising material for such liquor.  O. Reg. 71/09, s. 1; O. Reg. 297/15, s. 5.

(3) Despite subsection (2), a manufacturer of beer or wine may,

(a)  include a factual statement describing the aging of beer or wine in a spirits barrel on a label, container, package, or in advertising material, if such aging has taken place;

(b)  continue to use the brand name “Gin Lane Ale” until January 1, 2013; or

(c)  use a spirits term on labels, packaging or containers of liquor sold or kept for sale at a government store, a store to which an authorization under clause 3 (1) (e) or (e.1) of the Liquor Control Act applies or in any advertising material for such liquor if the manufacturer satisfies the Registrar that the use of the term,

(i)  is necessary to provide full and accurate information to the public about the character or attributes of the liquor,

(ii)  would not contravene any requirement or restriction in the laws of Ontario or the laws of Canada applicable to Ontario or any international trade agreement to which Canada is a signatory, and

(iii)  is not contrary to the public interest.  O. Reg. 71/09, s. 1; O. Reg. 297/15, s. 5.

10. (1) A manufacturer of beer shall forward to the Registrar every month a return, in a form approved by the Registrar, showing the gross amount of the manufacturer’s beer sales.  O. Reg. 64/98, s. 2; O. Reg. 145/11, s. 3.

(2) A manufacturer of beer shall forward to the Registrar upon request a return showing the gross amount of sales for the period requested.  O. Reg. 64/98, s. 2; O. Reg. 145/11, s. 3.

11. (1) A holder of a manufacturer’s licence to sell Ontario wine shall not refuse entry to the premises where Ontario wine is produced, stored or sold, to an official designated by the Liquor Control Board of Ontario if the official wishes to enter,

(a)  in order to record the weight of all grapes, cherries and other fruits received at the winery and used in the production of Ontario wine and concentrates;

(b)  in order to inspect the premises where Ontario wine is produced, sold or stored;

(c)  in order to take inventory of all Ontario wine and other products contained in the wine; or

(d)  in order to inspect all records, books of account and invoices related to the manufacture, sale or delivery of Ontario wine.  R.R.O. 1990, Reg. 720, s. 11 (1).

(2) Revoked:  O. Reg. 352/07, s. 2.

12. (1) A holder of a manufacturer’s licence shall ensure that any employee of the manufacturer who canvasses for, receives or solicits orders for the sale of liquor made by the manufacturer complies with section 2.1 of Regulation 718 of the Revised Regulations of Ontario, 1990.  O. Reg. 212/98, s. 1.

(2) A holder of a manufacturer’s licence shall not provide liquor to their employee for delivery to a person who ordered it unless the holder has received a purchase order for it remitted by the employee and has accepted the order.  O. Reg. 212/98, s. 1.

(3) A holder of a manufacturer’s licence shall not provide liquor under subsection (2) except from a store operated by the holder to which an authorization under clause 3 (1) (e) of the Liquor Control Act applies. O. Reg. 297/15, s. 6.

Transfer of Licence

13. (1) The following are prescribed changes for the purposes of section 16 of the Act:

1.  An individual becomes or ceases to be an officer or director of a licence holder that is a corporation or a corporation that effectively controls the business.

2.  A person becomes or ceases to be a partner of a licence holder that is a partnership.  

3.  A person or partnership acquires a beneficial interest in the business of the licence holder, including holding or controlling shares of a licence holder that is a corporation or in a corporation that effectively controls the business.

4.  A person or partnership other than the licence holder becomes entitled to any of the profits from the sale of liquor or liable for any obligations incurred from the sale of liquor at the premises to which the licence applies.  O. Reg. 352/07, s. 3.

(2) For the purposes of paragraph 3 of subsection (1), if a person or partnership acquires shares in a licence holder that is a corporation or in a corporation that effectively controls the business of the licence holder, an acquisition that results in the person or partnership holding or controlling 10 per cent or more of the outstanding shares, or of a class of shares, of the corporation is a prescribed change.  O. Reg. 352/07, s. 3.

(3) Despite subsection (1), the following prescribed changes shall be considered rollovers by the Registrar for the purposes of transferring a licence if the principal individuals involved in the business of the licence holder remain the same after the change occurs:

1.  A licence holder that is a sole proprietorship becomes a corporation.

2.  A licence holder that is a partnership becomes a sole proprietorship or a corporation.

3.  A licence holder that is a corporation becomes a sole proprietorship or a partnership.  O. Reg. 352/07, s. 3; O. Reg. 145/11, s. 3.

(4) Despite paragraph 1 of subsection (1), if an individual ceases to be an officer or director of a licence holder that is a corporation, the corporation may manufacture liquor for sale to the Liquor Control Board of Ontario without transferring its licence, if the corporation gives the Registrar notice of the change within 30 days after it occurs.  O. Reg. 352/07, s. 3; O. Reg. 145/11, s. 3.

(5) Despite paragraph 2 of subsection (1), if a partner ceases to be a partner in a partnership that is a licence holder, the partnership may manufacture liquor for sale to the Liquor Control Board of Ontario without transferring its licence, if the partnership gives the Registrar notice of the change within 30 days after it occurs.  O. Reg. 352/07, s. 3; O. Reg. 145/11, s. 3.

14.-18. Revoked:  O. Reg. 248/02, s. 3.

19. Revoked:  O. Reg. 526/96, s. 4.

20., 21. Revoked:  O. Reg. 248/02, s. 3.