Convenience stores optimistic about alcohol expansion despite FAO report

Midway Convenience Store in Windsor, Ont. as seen on Jan, 28, 2025. (Robert Lothian/CTV News Windsor)

Ontario’s decision to fast-track alcoholic beverages into convenience and grocery stores could still pay dividends, according to the chair of the Ontario Convenience Stores Association.

Terry Yaldo, who owns the Midway Convenience store in Windsor, believes the province could make out better than the grim financial picture painted by the budget watchdog.

A report released by the Financial Accountability Officer on Monday revealed that the decision to speed up the rollout cost about $612 million. Overall, the decision to expand access to alcoholic beverages will cost $1.4 billion through 2030.

“In our city, we’ve gotten a lot of subsidies, a lot of grants from governments, a lot of money for the automotive industry,” Yaldo said. “It’s no different for the convenience industry. This is going to grow jobs. It’s going to keep stores open. It’s not just helping our industry as well. It’s going to help the craft brewers. It’s going to help the local wineries.”

Many stores work to ensure products customers want, particularly those made locally, are in stock, Yaldo said.

In the convenience industry alone, he noted, about 7,000 additional jobs could be created through the decision.

As part of the decision, the LCBO is expected to net an additional $353 million mostly through increased wholesale activity.

“LCBO is projected to make money off this initiative by being the wholesaler. So at the end of the day, if the government’s up, even if it costs them some money, it’s a benefit to everybody,” Yaldo noted.

The report left Jay Goldberg the Ontario director for the Canadia Taxpayers Federation, with mixed feelings.

While increased consumer choice, remains a positive, Goldberg said it is concerning to see the price tag skyrocket, compared to original provincial figures.

The province previously said it entered into an early implementation agreement with The Beer Store to provide $225 million in an effort to keep stores open.

“You have to go back to the original deal and whether or not that was the best-negotiated deal or the best deal for taxpayers,” Goldberg said. “Ending this monopoly that they’ve had that you can’t go to the corner store to get a can of beer, I think that was the right decision on the part of the government.”

“The question then becomes was this the properly negotiated deal and did taxpayers get the best bang for the buck, and clearly the FAO report is indicating that that question is a no,” Goldberg added.

As the deal and financial impacts will continue to shake out for years to come, Yaldo said there’s a need for patience before judging the product.

“We’re very much still in the infancy stages of this initiative, so this is only going to get better across the province,” Yaldo said.