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LCBO Statement on Pricing Requirements

March 22, 2024 - As the largest purchaser of beverage alcohol in Canada, and one of the largest in the world, we take measures to ensure that we provide the most competitive price possible for our customers.   

LCBO’s Purchase Order Terms and Conditions outline the requirement that any product ordered be made available at a price that is equal to or lower than it is made available to any other government liquor board or government liquor purchasing body in Canada. This is common practice among retailers with significant purchasing power which is what allows us to offer Ontarians competitive pricing. Suppliers are aware of this requirement and are responsible for ensuring compliance with this legal obligation.   

We regularly conduct scans to ensure legal compliance with our Purchase Order Terms and Conditions. We found reason to believe that a small number of suppliers were not in compliance with this requirement and are working directly with them to ensure they meet the terms of their legal contract and remediate accounts as required. These are not fines or penalties, but rather chargebacks in accordance with the terms of the contracts.

We are acting in the best interests of our customers by enforcing a clause, which ensures that retail prices in Ontario remain competitive, and suppliers are treated fairly and consistently.    

 We pride ourselves on the strong partnerships we build with our suppliers. They are fundamental to our success and our commitment to delivering the best possible customer experience for Ontarians. When suppliers do not honour our agreements, the only people that lose are Ontarians. 

LCBO is on target to deliver the budgeted dividend for the 2023-2024 Financial Year, regardless of outstanding chargebacks. All net income from LCBO sales goes to the Government of Ontario to help fund key local and provincial public programs and services including health care, education, and infrastructure.