Ontario grocers are averting a dreaded requirement to take back beer and wine empties from customers.
The Beer Store has reached an agreement-in-principle which alleviates grocery stores in Ontario from the obligation to receive empties in-store as of Jan. 1, and instead allowing them to refer customers wishing to return empties to their nearest Beer Store.
The deal is most significant for grocers, many of whom had threatened to stop selling alcohol in response to the requirement, while for consumers, it largely means they can continue returning their empties to The Beer Store.
Major grocers like Metro, Walmart, Costco, Sobeys and Loblaws — who make up most of the market in the province — have signed on, said Sebastian Prins, director of government relations in Ontario for the Retail Council of Canada.
The Canadian Federation of Independent Grocers (CFIG) is recommending its individual members sign onto the agreement.
Independent grocers had been alarmed by the requirement to collect empties due to concerns over food safety, logistics and costs, said Gary Sands, senior vice president of policy and advocacy at the CFIG.
But now they will have three options, he said: receive empties, stop selling alcohol, or sign onto the deal with the Beer Store.
“There’s no downside,” Sands said. “We’re just delighted with this.”
The deal also means grocers will join the LCBO in paying into the Ontario Deposit Return Program, to fund The Beer Store operating the alcohol recycling system, Prins said.
As part of the deal, The Beer Store will ensure there is a recycling location available within 10 kilometres for the vast majority of the population.
That commitment comes after the Ontario government made a deal with The Beer Store, meant to speed up Premier Doug Ford’s plan to expand alcohol sales to convenience stores and more grocery stores, in which The Beer Store could close dozens of locations.
The agreement required The Beer Store to maintain at least 300 locations in 2025, but there was no agreed-to minimum starting next year, leaving the future of The Beer Store uncertain.
It’s possible the new deal cementing The Beer Store’s continued role could ensure no mass closures in the new year, especially in light of its 10-kilometre commitment. The Beer Store would not comment on that.
Grocers who take the deal will pay 17 cents per beer container sold to The Beer Store, Sands said, and will have signage in their stores advising customers that they can take their empties to the nearest Beer Store. They will not be charged for wine bottle sales.
The deal is also good news for the Ontario Deposit Return Program, as some grocers had warned they would refuse to accept empties by the Jan. 1 deadline — the same day The Beer Store is allowed to close an unlimited number of locations.
“This is positive news for consumers and the environment,” said Roy Benin, The Beer Store’s president and CEO.
“We are leaders in operating a deposit return system with a great track record of customer service. This voluntary service agreement will allow Ontarians access to the empty alcohol return system that gets people their deposit money back,” he said.
The Retail Council of Canada noted that the deal will see grocers join the LCBO and Ontarians in “financially supporting” the Ontario Deposit Return Program.
“After months of negotiations, grocers and The Beer Store have reached a deal that keeps alcohol container recycling simple and dependable; a system that that consumers know and expect,” said president and CEO Kim Furlong.
With files from The Canadian Press
