An LCBO fee hike of 4.4% is set to increase the cost of all beer sold at all outlets which will take effect April 1, 2025
Details of the Fee Increase
The fee hike represents a 4.4 per cent increase in what the LCBO calls the “cost of service” on its website, a levy applied to all beer products, whether imported or domestic. This fee affects retail outlets such as The Beer Store, supermarkets, convenience stores and brewery retail outlets.
Impact on Retailers and Consumers
Retailers are not obligated to pass on the fee increase to consumers, but a spokesperson for craft brewers indicates that beer prices will rise as a result. If retailers choose not to pass on the hike, it will eat into their profits. The cost of service fee for beer distributed to bars and restaurants is lower than that applied to retail outlets but is also set to rise by 4.4 per cent.
Craft Brewers’ Response
Ontario’s craft beer industry is vocally opposing the fee hike, arguing that it will lead to higher beer prices for consumers.
For more information visit the LCBO website HERE.
