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O. Reg. 198/24: LICENSING
filed May 24, 2024 under Liquor Licence and Control Act, 2019, S.O. 2019, c. 15, Sched. 22
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ontario regulation 198/24
made under the
Liquor Licence and Control Act, 2019
Made: May 23, 2024
Filed: May 24, 2024
Published on e-Laws: May 24, 2024
Published in The Ontario Gazette: June 8, 2024
Amending O. Reg. 746/21
(LICENSING)
1. (1) Subsection 1 (1) of Ontario Regulation 746/21 is amended by adding the following definitions:
“convenience store” means a store,
(a) that consists of no more than 4,000 square feet of retail floor space,
(b) in which food products offered for retail sale, excluding prepared food products that may be consumed on site, occupy at least half of the retail floor space,
(c) that offers a variety of at least five of the following types of food products for in-person retail sale, other than prepared food products that may be consumed on site:
(i) canned food,
(ii) dry food,
(iii) frozen food,
(iv) fresh fruits,
(v) fresh vegetables,
(vi) meat or meat alternatives,
(vii) dairy or dairy alternatives,
(viii) non-alcoholic beverages,
(ix) baked goods, and
(x) snack foods, and
(d) that is not primarily identified to the public as a pharmacy, even if a pharmacy as defined in the Drug and Pharmacies Regulation Act is located within the store; (“dépanneur”)
“council of the band” has the same meaning as in subsection 2 (1) of the Indian Act (Canada); (“conseil de bande”)
“grocery store” means a store,
(a) that has more than 4,000 square feet of retail floor space,
(b) in which food products offered for retail sale, excluding prepared food products that may be consumed on site, occupy,
(i) at least 10,000 square feet of the retail floor space, or
(ii) at least half of the retail floor space,
(c) that offers a variety of each of the following types of food products for in person retail sale, other than prepared food products that may be consumed on site:
(i) canned food,
(ii) dry food,
(iii) frozen food,
(iv) fresh fruits,
(v) fresh vegetables,
(vi) meat or meat alternatives,
(vii) dairy or dairy alternatives,
(viii) non-alcoholic beverages,
(ix) baked goods, and
(x) snack foods, and
(d) that is not primarily identified to the public as a pharmacy, even if a pharmacy as defined in the Drug and Pharmacies Regulation Act is located within the store; (“épicerie”)
“Indian” has the same meaning as in subsection 2 (1) of the Indian Act (Canada); (“Indien”)
“ready-to-drink beverage” means a ready-to-consume cooler, hard seltzer or other premixed cocktail made from spirits, wine, beer or fermented sugar, or from any combination of the four; (“boisson prête à boire”)
“reserve” means a reserve as defined in subsection 2 (1) of the Indian Act (Canada) or an Indian settlement located on Crown land, the Indian inhabitants of which are treated by Indigenous and Northern Affairs Canada in the same manner as Indians residing on a reserve; (“réserve”)
“retail floor space” means any indoor space that is fully enclosed by walls in which products or services are offered for sale to the public; (“surface de vente au détail”)
“small distillery” means a small distillery within the meaning of section 7; (“petite distillerie”)
(2) The definitions of “eligible grocery store”, “geographic region”, “malt-based beverage” and “wine beverage” in subsection 1 (1) of the Regulation are revoked.
(3) The definition of “wine boutique” in subsection 1 (1) of the Regulation is amended by striking out “an eligible grocery store” at the end and substituting “a grocery store”.
2. Subsection 3 (2) of the Regulation is revoked.
3. Section 7 of the Regulation is revoked and the following substituted:
Small distilleries: criteria
7. (1) For the purposes of this Regulation, a manufacturer of spirits is a small distillery if both of the following criteria are satisfied:
1. In the most recent 12-month period for which data is available, the manufacturer’s worldwide sales did not exceed two million litres of spirits or, if the manufacturer has been selling spirits for less than one year, its worldwide sales are not expected to exceed two million litres of spirits in the year.
2. Every affiliate of the manufacturer that manufactures spirits is a small distillery.
(2) In determining the amount of a manufacturer’s worldwide sales of spirits, the following are included:
1. All spirits sold by the manufacturer.
2. All spirits sold by an affiliate of the manufacturer.
4. Clause 9 (2) (d) of the Regulation is amended by striking out “beer or wine” and substituting “liquor” and by striking out “from an eligible grocery store or wine boutique” at the end and substituting “from a grocery store, convenience store or wine boutique”.
5. Section 14 of the Regulation is amended by adding the following subsection:
(4) Despite subsection (1), this section does not apply to applications for the issuance of a grocery store or convenience store licence that are submitted before September 1, 2025.
6. (1) Paragraph 1 of section 69 of the Regulation is amended by striking out “Beer and cider” at the beginning.
(2) Paragraph 2 of section 69 of the Regulation is amended by striking out “Beer and wine grocery” at the beginning and substituting “Convenience”.
7. Subsection 70 (1) of the Regulation is amended by striking out “beer and cider” in the portion before paragraph 1.
8. The Regulation is amended by adding the following section:
Licences continued
70.1 The following rules apply to licences and endorsements that are in effect on May 24, 2024:
1. This Regulation, as it read before that day, continues to apply to those licences and endorsements until July 31, 2024, except that holders of beer and cider grocery store licences and holders of beer and wine grocery store licences may keep for sale liquor that they will be permitted to sell on or after August 1, 2024.
2. On August 1, 2024, beer and cider grocery store licences and beer and wine grocery store licences are continued as grocery store licences under paragraph 1 of section 69.
3. On August 1, 2024, any wine boutique sales agent endorsement on a licence is continued as an endorsement on a grocery store licence.
9. (1) Subsection 71 (1) of the Regulation is amended by striking out “beer and cider” in the portion before paragraph 1.
(2) Paragraph 1 of subsection 71 (1) of the Regulation is amended by striking out “beer or cider in an eligible grocery store operated by the licensee” at the end and substituting “beer, wine and ready-to-drink beverages in a grocery store operated by the licensee”.
(3) Paragraph 2 of subsection 71 (1) of the Regulation is revoked and the following substituted:
2. Serve or offer to serve samples of liquor in the grocery store that is eligible to be sold in that store.
(4) Paragraph 3 of subsection 71 (1) of the Regulation is amended by striking out “beer or cider provided by the licensee in the eligible grocery store” at the end and substituting “liquor provided by the licensee in the grocery store”.
(5) Subsection 71 (1) of the Regulation is amended by adding the following paragraph:
4. Deliver liquor for a fee from the grocery store.
(6) Subsection 71 (2) of the Regulation is amended by striking out “beer and cider” and by striking out “eligible”.
10. Section 72 of the Regulation is revoked and the following substituted:
Authorized actions for convenience store licence
72. A convenience store licence authorizes the licensee to perform the following actions in accordance with this Regulation:
1. Keep for sale, offer for sale or sell beer, wine and ready-to-drink beverages in a convenience store operated by the licensee.
2. Deliver liquor for a fee from the convenience store.
11. (1) Paragraph 2 of subsection 73 (1) of the Regulation is amended by striking out “are eligible” and substituting “is eligible”.
(2) Clauses 73 (2) (a) and (b) of the Regulation are amended by striking out “an eligible grocery store” wherever it appears and substituting in each case “a grocery store”.
12. Subsection 74 (1) of the Regulation is revoked and the following substituted:
Authorized actions for Brewers Retail Inc. licence
(1) The Brewers Retail Inc. licence authorizes the licensee to perform the following actions in accordance with this Regulation:
1. Keep for sale, offer for sale or sell beer and cider at retail stores approved by the Registrar.
2. Serve or offer to serve samples of beer and cider in the retail stores approved by the Registrar that are eligible to be sold in that store.
3. Permit individuals to possess or consume samples of beer and cider provided by the licensee in a retail store approved by the Registrar.
4. Deliver beer and cider that is sold in the retail stores approved by the Registrar for a fee.
5. Keep for sale, offer for sale or sell beer at wholesale.
13. (1) Subsection 76 (1) of the Regulation is amended by striking out “an eligible grocery store” at the end and substituting “a grocery store”.
(2) Subsection 76 (2) of the Regulation is revoked.
14. (1) Clause 77 (2) (b) of the Regulation is amended by striking out “the eligible grocery store” at the end and substituting “the grocery store”.
(2) Clause 77 (2) (c) of the Regulation is revoked and the following substituted:
(c) the operator of the grocery store holds a grocery store licence with a wine boutique sales agent endorsement for the grocery store.
(3) Subsection 77 (3) of the Regulation is revoked.
15. Section 78 of the Regulation is revoked and the following substituted:
Limitation on issuance of grocery store licences and convenience store licences on reserve
78. The Registrar shall, despite section 5 of the Act, refuse to issue a grocery store licence or a convenience store licence if the grocery store or convenience store is located on a reserve unless the council of the band has approved, by the passage of a resolution, the licensing of the store.
Limitations on licences for stores on reserve
78.1 (1) If the Registrar receives a copy of a resolution from the council of the band requesting that the Registrar not issue any grocery store licences or convenience store licences for retail stores to be located on the reserve, the Registrar shall not issue the licences.
(2) Despite section 5 of the Act, the Registrar shall refuse any applications for a grocery store licence or a convenience store licence that are outstanding at the time the Registrar receives a copy of the resolution referred to in subsection (1) or that are received after that time.
(3) An applicant is not eligible for a grocery store licence or a convenience store licence if the proposed grocery store or convenience store is to be located on a reserve that is the subject of a resolution referred to in subsection (1).
(4) Clause 13 (1) (a) of the Act does not apply with respect to subsection (3) of this section, but only in relation to the suspension or revocation of a grocery store or convenience store licence.
(5) The Registrar shall publish on the Commission’s website a list of the reserves in respect of which grocery store licences and convenience store licences may not be issued in accordance with this section, along with the dates of the relevant resolutions.
(6) If the Registrar receives a copy of a resolution from the council of the band rescinding a request referred to in subsection (1), this section ceases to apply with respect to the reserve.
16. (1) Section 80 of the Regulation is amended by striking out “beer and cider” in the portion before paragraph 1.
(2) Paragraph 1 of section 80 of the Regulation is amended by striking out “eligible”.
(3) Paragraph 2 of section 80 of the Regulation is amended by striking out “beer and cider”.
17. Section 83 of the Regulation and the heading before section 83 are revoked and the following substituted:
Grocery Store Licences and Convenience Store Licences
Application
83. It is a condition of every grocery store licence and every convenience store licence that the licensee complies with sections 84 to 90.
18. Section 84 of the Regulation is revoked and the following substituted:
Financial relationships
84. (1) The licensee shall not offer a brand of liquor for sale at the grocery store or convenience store if the licensee or any of its affiliates has a direct or indirect financial interest in the brand or in a trademark under which the brand is marketed.
(2) The licensee shall not enter into an agreement with a liquor manufacturer that restricts the manufacturer’s ability to sell its liquor in other stores.
(3) The licensee shall not enter into an agreement with a liquor manufacturer that guarantees the provision of shelf space at the grocery store or convenience store or a product listing for the manufacturer’s liquor or that guarantees any merchandising, marketing or promotional opportunities.
(4) The licensee shall not directly or indirectly request, demand or receive a financial or non-monetary benefit in Ontario or in any other jurisdiction from a liquor manufacturer or from a person acting on the manufacturer’s behalf, including a benefit requested, demanded or received in exchange for,
(a) the provision of shelf space at the grocery store or convenience store;
(b) a product listing for the manufacturer’s liquor; or
(c) any merchandising, marketing or promotional opportunity, including through a loyalty program or rewards marketing program described in paragraph 2 of subsection 3 (4) of Ontario Regulation 750/21 (Minimum Pricing of Liquor and Other Pricing Matters), made under the Act.
(5) Subsection (4) does not apply to collaboration between a grocery store or convenience store and the holder of a manufacturer’s licence to sell or the Brewers Retail Inc. licence with respect to demand planning, forecasting and category management services provided that neither party is remunerated in respect of the services.
(6) If the licensee charges a fee to a manufacturer for providing warehousing or distribution services for liquor, the fee must be calculated in the same manner for all manufacturers and the fee schedule must be available to the public.
Distribution
84.1 The licensee must accept a distribution of liquor at the licensed grocery or convenience store and not at a warehouse or distribution centre if requested to do so by the LCBO or, in the case of a distribution made by the holder of the Brewers Retail Inc. licence or by a manufacturer, by the distributor.
19. Section 85 of the Regulation is revoked and the following substituted:
Must continue to be grocery store or convenience store
85. (1) The licensee shall ensure that the store continues to be a grocery store or convenience store, as the case may be, within the meaning of this Regulation.
(2) For the purposes of subsection (1), liquor sold at the grocery store or convenience store is not considered to be a food product.
20. Section 86 of the Regulation is revoked and the following substituted:
Special rules re winery retail stores
86. (1) A licensee with a grocery store in which space for an offsite winery retail store is leased or licensed shall not,
(a) before January 1, 2032, unilaterally terminate the lease or licence of the offsite winery retail store for any reason other than a default by the operator of the offsite winery retail store under the lease or licence; and
(b) on or after January 1, 2031, unilaterally terminate the lease or licence of the offsite winery retail store without giving one year’s notice, unless the termination is for default by the operator of the offsite winery retail store under the lease or licence.
(2) If, on or after May 1, 2016, the operator of a grocery store leased or licensed space at the grocery store for an offsite winery retail store and holds a licence to operate a retail store in respect of the grocery store, no person shall, before January 1, 2031, sell wine, other than cider or ready-to-drink beverages, at the grocery store unless,
(a) the sale is through an offsite winery retail store at the grocery store;
(b) the sale is under a licence to operate the retail store that was originally issued as a beer and wine grocery store licence before April 1, 2024;
(c) the winery that operates the offsite winery retail store has notified the Registrar in writing that the winery does not wish the lease or licence at the store to continue; or
(d) the lease or licence was terminated as a result of a default by the operator of the offsite winery retail store under the lease or licence.
(3) If, on April 1, 2024, the operator of a grocery store leased or licensed space at the grocery store for an offsite winery retail store and did not hold a licence to operate a retail store in respect of the grocery store, no grocery store licence shall be issued in respect of the store before January 1, 2031 unless,
(a) there is a wine boutique agreement in respect of the store;
(b) the winery that operates the offsite winery retail store has notified the Registrar in writing that the winery does not wish the lease or licence at the store to continue; or
(c) the lease or licence was terminated as a result of a default by the operator of the offsite winery retail store under the lease or licence.
(4) If, on April 1, 2024, the operator of a grocery store held a beer and cider licence in respect of the grocery store and did not lease or license space at the grocery store for an offsite winery retail store, no person shall sell wine, other than cider or ready-to-drink beverages, at the grocery store before January 1, 2031 except through a wine boutique at the store.
21. (1) Subsections 87 (1) and (2) of the Regulation are revoked and the following substituted:
Sales in grocery stores and convenience stores
(1) The licensee must purchase all liquor from the LCBO and must comply with all terms and conditions relating to the sale.
(2) If the licensee purchases containers of liquor that are packaged together for consumer sale, the licensee must sell the liquor in that packaging.
(2) Paragraphs 2, 3 and 6 of subsection 87 (3) of the Regulation are revoked.
(3) Subsection 87 (3) of the Regulation is amended by adding the following paragraph:
9. Ready-to-drink beverages with an alcohol content greater than 7.1 per cent by volume.
(4) Subsection 87 (4) of the Regulation is amended by striking out “beer or wine products” and substituting “liquor products” and by striking out “eligible grocery stores” at the end and substituting “grocery stores and convenience stores”.
(5) Section 87 of the Regulation is amended by adding the following subsection:
(6) The following rules apply to grocery store licences and convenience store licences:
1. If the licence is a convenience store licence, the licensee shall not sell or offer for sale liquor in the store before September 5, 2024.
2. If the licence is a grocery store licence other than a licence continued under paragraph 2 of section 70.1, the licensee shall not sell or offer for sale liquor in the store before October 31, 2024.
22. (1) Section 88 of the Regulation is revoked and the following substituted:
Conduct of sales in grocery and convenience stores
88. (1) The licensee shall ensure that all aspects of the sale of liquor, including ordering and payment, are conducted in person within the retail floor space of the store.
(2) Despite subsection (1), a licensee may permit a customer to order and pay for liquor online through a website or application if the following conditions are met:
1. The licensee must ensure that liquor is only made available for online purchase in a dedicated section of the website or application, and that no other products are made available for purchase in that section of the website or application.
2. The licensee must ensure that any advertisements for liquor on the website or application are only contained in the dedicated section of the website or application described in paragraph 1, and that no other products are advertised in that section of the website or application.
3. The licensee must ensure that any liquor that is ordered or paid for online is supplied from the inventory of the grocery or convenience store.
(3) If liquor is ordered online in accordance with subsection (2) and is to be picked up from a grocery store or convenience store by a customer, the licensee must ensure that:
1. The liquor is picked up at or immediately outside of the grocery store or convenience store by a person who is at least 19 years of age.
2. The liquor is only made available for pickup between the hours of 7 a.m. and 11 p.m. on any day.
(4) If the liquor is ordered online in accordance with subsection (2), the licensee may deliver the liquor to the customer in accordance with section 10.
(5) The licensee shall not do any of the following:
1. Accept, as full or partial payment for liquor, any benefits issued under a loyalty program or a rewards marketing program, including coupons, tickets, points or rewards.
2. Exchange, convert or redeem any benefits issued under a loyalty program or a rewards marketing program, including coupons, tickets, points or rewards, for cash that is applied to payment for liquor.
3. Offer free or discounted merchandise contingent upon the purchase of liquor.
(6) Except as may be required on sales receipts and invoices for the purposes of the Excise Tax Act (Canada), the licensee shall display and advertise prices for beer and wine that include all applicable taxes and container deposits, including container deposits payable under the terms of a supply agreement between the licensee and the LCBO.
(2) Subsection 88 (5) of the Regulation, as remade by subsection (1), is revoked and the following substituted:
(5) The licensee shall not offer free or discounted merchandise contingent upon the purchase of liquor.
(3) Subsection 88 (6) of the Regulation, as remade by subsection (1), is revoked.
23. (1) Subsection 89 (1) of the Regulation is revoked and the following substituted:
Product display
(1) For the purposes of this section,
“beer”, “cider” and “wine” do not include ready-to-drink beverages.
(1.1) The licensee must ensure that all liquor that is sold in the grocery or convenience store outside of any wine boutique is displayed in a single contiguous product display area in which,
(a) all beer and cider is displayed together;
(b) all wine, excluding cider, is displayed together; and
(c) all ready-to-drink beverages are displayed together.
(1.2) Subsection (1.1) does not apply to liquor displayed in an area that is not accessible to the public.
(2) Subsection 89 (3) of the Regulation is amended by striking out “in the eligible grocery store” and substituting “in the grocery store or convenience store”.
(3) Subsection 89 (4) of the Regulation is revoked and the following substituted:
(4) The licensee shall ensure that at least 20 per cent of the containers of cider on display in the grocery store, outside of any wine boutique, or on display in the convenience store are containers of cider produced by small cideries.
(4) Subsection 89 (5) of the Regulation is amended by striking out “In the case of a beer and wine grocery store licence” at the beginning and by striking out “in the eligible grocery store” and substituting “in the grocery store or convenience store”.
(5) Section 89 of the Regulation is amended by adding the following subsection:
(5.1) The licensee shall ensure that at least 20 per cent of the containers of ready-to-drink beverages on display in the grocery or convenience store are containers of beverages produced by small breweries, small distilleries or small wineries.
(6) Subsection 89 (6) of the Regulation is amended by striking out “in the eligible grocery store outside of any wine boutique” and substituting “in the grocery store, outside of any wine boutique, or in the convenience store”.
(7) Subsection 89 (7) of the Regulation is amended by striking out “in the eligible grocery store outside of any wine boutique” in the portion before clause (a) and substituting “in the grocery store, outside of any wine boutique, or in the convenience store”.
(8) Subsection 89 (9) of the Regulation is revoked.
(9) Subsection 89 (10) of the Regulation is amended by striking out “In the case of a beer and wine grocery store licence” at the beginning and by striking out “in the eligible grocery store outside of any wine boutique” and substituting “in the grocery store, outside of any wine boutique, or in the convenience store”.
(10) Subsection 89 (11) of the Regulation is revoked and the following substituted:
(11) On request, the LCBO shall give the licensee a list of liquor products that could satisfy the obligations set out in subsections (3), (4), (5), (5.1) and (10) and that it has made available for sale to grocery stores and convenience stores.
24. Section 90 of the Regulation is revoked and the following substituted:
Packaging
90. The licensee shall not keep for sale, offer for sale or sell liquor in a container with a volume of more than five litres.
25. Section 93 of the Regulation is amended by adding the following subsection:
(2) The licensee may not sell products from the retail store other than liquor permitted to be sold under this section except as permitted by the Registrar.
26. Section 94 of the Regulation is amended by striking out “an eligible grocery store” and substituting “a grocery store”.
27. Section 95 of the Regulation is amended by striking out “beer and cider”.
28. (1) Paragraphs 1 and 2 of subsection 96 (3) of the Regulation are revoked.
(2) Subsection 96 (4) of the Regulation is revoked.
(3) Section 96 of the Regulation is amended by striking out “eligible” wherever it appears.
29. Section 97 of the Regulation is amended by striking out “eligible” wherever it appears.
30. Section 99 of the Regulation is revoked and the following substituted:
Sales in wine boutiques
99. The licensee may not acquire VQA wine produced by a different licensee for sale in the store except from the LCBO and the licensee shall comply with all terms and conditions relating to the sale.
31. (1) Section 100 of the Regulation is amended by striking out “eligible” wherever it appears.
(2) Paragraphs 1 and 2 of subsection 100 (3) of the Regulation are revoked.
(3) Subsection 100 (4) of the Regulation is revoked.
32. (1) Paragraph 2 of subsection 101 (1) of the Regulation is revoked and the following substituted:
2. Ready-to-drink beverages.
(2) Subclause 101 (3) (b) (i) of the Regulation is amended by striking out “eligible”.
(3) Subsection 101 (11) of the Regulation is amended by striking out “eligible grocery stores” at the end and substituting “wine boutiques”.
33. Section 103 of the Regulation is revoked and the following substituted:
Packaging
103. The licensee shall not keep for sale, offer for sale or sell liquor in a container with a volume of more than five litres.
34. (1) Subsection 106 (3) of the Regulation is amended by adding the following paragraph:
3. Cider purchased from the LCBO with an alcohol content that is not greater than 7.1 per cent by volume.
(2) Subsections 106 (5) and (6) of the Regulation are revoked and the following substituted:
(5) The licensee may not sell tobacco.
35. (1) Subsection 113 (2) of the Regulation is revoked.
(2) Subsection 113 (5) of the Regulation is amended by striking out the portion before clause (a) and substituting the following:
(5) Subsection (4) does not apply to a benefit received by the licensee from the operator of a retail store, other than a grocery store or convenience store, or of a wine boutique, if,
. . . . .
(3) Clause 113 (5) (c) of the Regulation is amended by striking out “a beer and wine grocery store licence or a beer and cider grocery store licence” at the end and substituting “a grocery store licence or convenience store licence”.
36. (1) Subparagraph 3 ii of section 124 of the Regulation is revoked and the following substituted:
ii. in a grocery store for the purpose of providing samples to customers of the store, or
(2) Subparagraph 3 iii of section 124 of the Regulation is amended by striking out “an eligible grocery store” and substituting “a grocery store”.
37. (1) Subparagraph 3 ii of subsection 130 (1) of the Regulation is revoked and the following substituted:
ii. in a grocery store for the purpose of providing samples to customers of the store.
(2) Paragraph 3 of subsection 130 (2) of the Regulation is revoked and the following substituted:
3. Serve or offer to serve liquor,
i. for the purpose of providing samples to the holder of a liquor sales licence or their employees at the premises to which the liquor sales licence applies, or
ii. in a grocery store for the purposes of providing samples to customers of the store.
(3) Subparagraph 3 ii of subsection 130 (3) of the Regulation is revoked and the following substituted:
ii. in a grocery store for the purpose of providing samples to customers of the store, or
(4) Subparagraph 3 iii of subsection 130 (3) of the Regulation is amended by striking out “an eligible grocery store” and substituting “a grocery store”.
38. (1) Clause 132 (3) (b) of the Regulation is amended by striking out “a beer and wine grocery store licence or a beer and cider grocery store licence” at the end and substituting “a grocery store licence or convenience store licence”.
(2) Subsection 132 (4) of the Regulation is amended by striking out “an eligible grocery store” and substituting “a grocery store or convenience store” and by striking out “brewery licence” and substituting “manufacturer’s licence to sell”.
39. Clause 139 (a) of the Regulation is amended by adding “at which samples may be provided” after “retail store”.
40. Subsection 140 (3) of the Regulation is amended by striking out “January 1, 2026” and substituting “January 1, 2031”.
41. Section 141 of the Regulation is revoked and the following substituted:
Distribution of beer
141. (1) In this section,
“eligible brewer” means the holder of a brewery licence whose worldwide production as defined in subsection 4 (2) was less than 300,000 hectolitres in the preceding production year; (“brasseur admissible”)
“pooled distribution” means the distribution of liquor that has been manufactured by two or more manufacturers that are not affiliated in a single shipment; (“distribution en commun”)
“third-party service provider” means a person that distributes liquor on behalf of a licensee and that is not licensed under the Act. (“tiers fournisseur de services”)
(2) Subject to subsection (4), the holder of a brewery licence may distribute its own beer or beer manufactured by its affiliates.
(3) Subject to subsection (4), the holder of a brewery licence may use a third-party service provider or a holder of a manufacturer’s licence to sell, other than a brewery licence held by a non-eligible brewer, to distribute its beer, including in a pooled distribution, as long as no products other than liquor or non-liquor beverages are included in the shipment in which the beer is distributed.
(4) If the holder of a brewery licence is not an eligible brewer,
(a) the licensee shall not distribute more than 300,000 hectolitres of its beer to holders of a liquor sales licence, a grocery store licence or a convenience store licence in a production year other than through a distribution performed by the holder of the Brewers Retail Inc. licence pursuant to section 107, regardless of whether the beer is distributed by the licensee, an affiliate, a third-party service provider or the holder of a manufacturer’s licence to sell;
(b) the licensee shall not distribute beer manufactured by a brewer with which it is not affiliated; and
(c) the licensee shall not distribute beer in a pooled distribution unless the distribution is performed by the holder of the Brewers Retail Inc. licence pursuant to section 107.
42. Subsection 153.2 (1) of the Regulation is revoked.
43. Subsection 154 (2) of the Regulation is amended by striking out “a licence to operate a retail store” at the end and substituting “the Brewers Retail Inc. licence”.
44. (1) Clause 155 (2) (a) of the Regulation is amended by striking out “subsections (3) to (8)” and substituting “subsections (3) to (6)”.
(2) Subsection 155 (5) of the Regulation is revoked.
(3) Subsection 155 (6) of the Regulation is revoked and the following substituted:
(6) The Registrar shall not transfer a grocery store licence or convenience store licence in accordance with this section unless the transfer is to the purchaser of the grocery store or convenience store to which the licence applies.
(4) Subsections 155 (7) and (8) of the Regulation are revoked.
45. (1) Paragraphs 1 and 2 of subsection 156 (1) of the Regulation are revoked.
(2) Subsection 156 (2) of the Regulation is amended by striking out “Subject to subsection (3)” at the beginning of the portion before clause (a).
(3) Subsection 156 (3) of the Regulation is revoked.
46. Schedule 1 to the Regulation is revoked.
Commencement
47. (1) Except as otherwise provided in this section, this Regulation comes into force on the day it is filed.
(2) Sections 35, 40 and 41 come into force on the later of August 1, 2024 and the day this Regulation is filed.
(3) Subsections 22 (2) and (3), 28 (1) and (2) and 31 (2) and (3) come into force on the later of September 5, 2024 and the day this Regulation is filed.