The provincial government’s expansion of alcohol sales has been a “real game-changer” for convenience stores, driving higher foot traffic and replacing revenue lost due to a “huge” decrease in cigarette sales, according to the Convenience Industry Council of Canada.
A recent survey by the council found that revenue on all products in convenience stores was up 12 per cent this September in Ontario compared to last fall — when the province first allowed alcohol sales in convenience stores — and increased to 33 per cent year-over-year on long weekends.
In contrast, sales in the rest of the country have remained flat, the council said.
“When somebody comes in to the store to buy alcohol, whether it’s a six pack of beer or a couple of coolers or a bottle of wine, oftentimes they’re buying something else with that,” said Anne Kothawala, president and CEO of CICC. “So the overall basket has increased.”
Alcohol sales could be lifeblood for the stores, which were closing at a rate of more than a store a day in Ontario in 2023, mostly in rural areas, according to stats compiled by CICC, a hangover from decreased traffic during the pandemic as well as other factors such as lost cigarette sales to what ICCC said is a flourishing contraband tobacco market.
“Convenience stores need to have the opportunity to offer their customers different kinds of products,” said Kothawala. “We need to turn the convenience store into a one-stop shop and so being able to offer beverage alcohol to our customers is really critical.”
A separate study commissioned by CICC found that contraband sales accounted for 20 per cent to more than 50 per cent of the market, depending on the province.
James Moretti, the CEO of Avondale, which owns and operates 75 convenience stores in the Niagara Region, said that as taxes and prices increase on tobacco products, customers are unable to afford the retail price for a pack of cigarettes and customers are turning to contraband tobacco.
The sale of alcohol has been “a lifeline for a lot of independents and chains,” said Moretti. “We’ve closed a number of stores over the years based on the inability to make profit. And this has now changed our perspective and thinking that, ‘hey, there’s a light here that maybe we’re able to keep stores open.”
According to Jeff Brownlee, vice president of communications and stakeholder relations for CICC, the loss of cigarette sales have hit small independent stores particularly hard because tobacco products, the largest in-store-category, have witnessed a double-digit decrease year over year for the past three years.
Convenience stores were part of Premier Doug Ford’s modernization of alcohol sales in Ontario in 2024, which also allowed grocery and big box stores to sell beer, wine, cider, and ready-to-drink beverages.
On September 5, 2024, there were 4,248 active licenses. As of October 8, 2025, there are 5,245 active licenses.
If there has been a hiccup, it’s that convenience store owners can’t keep enough product on the shelves and have little storage space for extra stock, said Kothawala.
Moretti said both the LCBO and the Beer Store have minimum delivery orders — 15 and 48 cases respectively — and that although his stores are large enough to accommodate extra stock, many smaller independents wouldn’t have the storage space and would have to opt for less frequent deliveries.
Owners also have to juggle multiple deliveries now, not only from grocery wholesalers, but from the Beer Store and a third party delivery service for the LCBO, which Kothawala said can be difficult when there is one staff person on duty who is also trying to serve customers.
The council has asked the province to consider allowing grocery wholesalers to deliver items such as ready-to-drink beverages, which Kothawala says are hugely popular, as well as wine and cider, to cut down on the number of deliveries and the associated paperwork.
The Ministry of Finance said in an email that it “has engaged with the industry on this issue and will continue to work with them to address concerns and ensure the success of the marketplace for Ontario businesses and consumers.”
“Our government delivered the largest expansion of provincial alcohol sales in nearly a century expanding consumer choice and convenience,” said Colin Blachar, director of media for Finance Minister Peter Bethlenfalvy, in an email. “These changes have provided new opportunities for thousands of Ontario small businesses.”
The introduction of alcoholic drinks in convenience stores has not been without criticism though, with mental health and health advocates concerned that sales could increase access to minors.
A spokesperson with Alimentation Couche-Tard, which owns and operates Circle K convenience stores in Ontario, said customers have been positive about the introduction of beer, wine, cider and ready-to-drink beverages in Ontario and that the chain “has extensive experience selling age-restricted products in other markets and remains focused on making our customers’ lives a little easier every day.”
“Customers appreciate the added convenience and choice, and we’ve seen encouraging early results in line with our expectations,” said the spokesperson in an email.
Grocery stores have also griped that the province gave convenience stores a slightly better margin on wholesale alcohol prices — 15 per cent compared to 10 per cent for grocers — but Kothawala said the difference reflects the fact that convenience stores have a lower volume of sales.
