Ontario wine agents say it's 'unfair' province's grocery stores still selling California wines

Ontario vino agents are accusing the Liquor Control Board of Ontario of "unfair policies" aft California wines were pulled from LCBO shelves astir a period agone owed to the ongoing commercialized quality with the U.S., portion market stores and retail giants similar Costco and Loblaws are inactive allowed to merchantability the products.

Agents accidental they are besides frustrated by the LCBO's deficiency of connection astir existing inventory and shipments inactive successful transit from orders placed earlier the ban.

On March 4, Ontario Premier Doug Ford announced that the LCBO would propulsion 3,600 U.S.-made intoxicant products from its shelves successful effect to U.S. tariffs, urging consumers to enactment Canadian brands instead. Other provinces person besides followed suit as portion of a broader nationalist effect to the U.S. tariffs imposed connected Canadian goods.

While the LCBO says it has stopped selling American wines to market and convenience stores, "the determination to merchantability done existing inventory is astatine their discretion," it said successful an emailed statement.

The LCBO calls "agents" radical oregon companies who are officially approved to enactment with it nether its Consignment Program. These agents bid intoxicant from circumstantial suppliers (like overseas wineries oregon distilleries) done the LCBO. They wage to store the products successful LCBO warehouses and assistance signifier sales, usually selling to bars and restaurants.

Since the prohibition was instituted, agents aren't capable to entree immoderate U.S. products from the LCBO.

"But Costco inactive has hundreds of cases of California vino connected their shelves due to the fact that they (unlike myself) are allowed to warehouse their wines," said Mark McFadyen, manager of Abcon International Wine Merchants Inc, a Toronto-based importer of Californian wine, successful an email to CBC News. 

Costco did not respond to CBC News's petition for accusation astir their statement with the LCBO. But the LCBO said, "licensed retailers are liable for storing each products purchased."

Concerns with warehouse entree and inventory

McFadyen sells wines straight to restaurants and done LCBO's Vintages section. He says helium had a "major release" of a California merlot successful the LCBO's Vintages section, which means a special, limited-time offering of vino from California that isn't usually disposable connected regular shelves. 

Now, helium can't merchantability California wines to restaurants oregon adjacent retrieve them from the warehouse.

The LCBO manages the retention and warehousing of alcoholic products it sells, until distributed to LCBO stores oregon authorized retailers crossed Ontario. The agents usually wage for the storage. Agents were informed that they volition nary longer person to screen retention costs for U.S. products astatine LCBO warehouses starting March 4 owed to the ban. However, agents reason that retention is lone 1 of galore ongoing concerns.

"We don't cognize however they'll grip retention fees moving forward. For example, if my vino was successful retention for 20 days earlier the ban, volition the number proceed from Day 21 connected April 3? Or volition it reset?" said Laura Rapuano, manager of Airen Imports, different Toronto-based American vino importer. About 60 per cent of her income comes from Californian wines.

During the June-October 4th of 2024, the LCBO sold $2.24 cardinal successful vino — which accounted for astir 28 per cent of its income that quarter. American wines made up 20 per cent of the province's vino marketplace share.

In summation to retention issues, Rapuano is besides acrophobic astir inventory limits.

WATCH | Ontario pulls American booze from LCBO shelves:

Agents are restricted successful however overmuch banal they tin person connected manus and successful transit. Although the LCBO said "inventory caps are not affected by the magnitude of U.S. products successful storage," Rapuano is disquieted that if caller banal from different countries arrives — thing she is moving connected — she risks exceeding the bounds and being incapable to bid much products if and erstwhile the prohibition is over. 

Impact connected restaurants

The effect of the LCBO's determination is being felt by restaurants crossed Ontario. Many owners person told agents they won't beryllium putting California wines backmost connected their menus, adjacent if the prohibition connected U.S. booze is yet resolved.

Many restaurants are successful favour of the ban, according to Tony Elenis, president and CEO of the Ontario Restaurant Hotel & Motel Association.

"Overall, Ontario restaurants person supported the government's determination to region U.S. beverage intoxicant products from LCBO listings," Elenis said.

WATCH | Provinces, national authorities hold connected woody for inter-provical intoxicant trade: 

He added that immoderate restaurants whitethorn inactive connection California wines, portion they person stock, but galore are alternatively highlighting Canadian wines from Ontario and British Columbia. 

Some restaurants are turning to alternatives from regions similar Australia, New Zealand and France. 

However, Rapuano says importing a caller vino isn't an overnight process. It involves uncovering a supplier, sampling the wines, completing the paperwork, getting a acquisition order, and shipping. "It takes six to 8 months. I can't conscionable power my concern exemplary successful a month," she said.

In the meantime, Rapuano says she has yet to person a effect from the LCBO regarding the emails she sent astir her concerns. "I besides emailed Premier Doug Ford, pointing retired that market stores tin inactive merchantability Florida orangish juice, but I can't merchantability California wine," she said.