The Beer Store, once the dominant force in Ontario’s beer retail market, is facing a wave of closures as competition intensifies. What was once a monopoly for beer sales in the province is now struggling to survive in the wake of policy changes that allow alcohol to be sold in convenience stores and grocery stores.
Since May 2024, 23 Beer Store locations have either closed or are set to shut down by February 28, 2025, according to John Nock, President of UFCW, the union representing Beer Store workers.
“This is definitely a direct cause of the beer market being opened up,” Nock says, pointing directly at the Ontario government’s decision to accelerate alcohol sales expansion.
A Monopoly No More: How Policy Changes Reshaped the Industry
In September 2024, the Ford government officially launched its landmark expansion of alcohol sales to convenience and grocery stores. While this change was intended to offer consumers greater accessibility and choice, it has hit The Beer Store hard, forcing closures and raising concerns about the chain’s long-term survival.
The timing of this decision coincided with an LCBO workers’ strike, in which employees protested against the potential negative impact of this expansion on jobs and wages. Meanwhile, The Beer Store began feeling the pressure months before the official policy shift and continues to struggle.
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More Closures on the Horizon?
Currently, a government agreement mandates that The Beer Store must keep at least 300 locations open until the end of 2025. However, once that deadline passes, there will be no restrictions on further closures.
“If no further agreements are made to maintain The Beer Store’s stability, we could see a far larger crash coming in the near future,” warns Nock.
Desperate Measures to Stay Afloat
In an attempt to offset losses, The Beer Store has explored new revenue streams, including:
- Selling lottery tickets and non-beer items
- Reassessing store locations based on profitability and foot traffic
- Adjusting operations to adapt to market changes
However, these strategies have not been enough to counteract declining sales and mounting competition.
Beer Store Vice President of Retail, Ozzie Ahmed, acknowledges the challenge, stating:
“Like any retailer in today’s evolving marketplace for beverage alcohol, we’re continually evaluating our business operations to ensure we’re meeting the needs of our customers and adapting to change.”
Craft Breweries Also Feeling the Squeeze
It’s not just The Beer Store struggling to navigate this new retail landscape—local craft breweries have voiced concerns over the impact on their businesses.
In late 2024, Toronto-based breweries Left Field and Blood Brothers warned that small, independent brewers are at a disadvantage compared to massive foreign-owned corporations.
Blood Brothers stated:
“One of our largest streams of revenue—our bottle shop—is now up for competition with every corner store in our area. Even though we would gladly sell our products to these stores, they are not interested in craft beer.”
What’s Next for Ontario’s Beer Market?
With foreign macro-brewers dominating shelf space in new retail locations, and The Beer Store facing an uncertain future, Ontario’s beer industry is undergoing its biggest transformation in decades.
If no intervention occurs, 2026 could mark the end of The Beer Store as we know it—and the beginning of a completely new era for beer sales in Ontario.
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