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Globe says Molson hears cost of Beer Store sale unclear

2024-06-16 07:33 ET - In the News

See In the News (C-TPX) Molson Coors Canada Inc

The Globe and Mail reports in its Saturday edition that the Ontario government's plan to expand the sale of beer into convenience stores, big-box outlets and additional supermarkets will likely cost more than the announced $225-million. The Globe's Jeff Gray writes that the final cost will depend on how rapidly the new system changes the province's alcohol retailing landscape. Both the government and the Beer Store, which holds a near-monopoly on beer sales in the province, have not provided specific estimates but acknowledge that the additional cost could potentially reach hundreds of millions of dollars. The plan, announced by Premier Doug Ford, will see beer, wine, cider and premixed drinks becoming available in corner stores as of Sept. 5, with big-box outlets and an unlimited number of additional supermarkets able to join in as of Oct. 31. The disclosed cost includes payments of up to $225-million to the Beer Store chain to cover the costs of keeping at least 300 of its 422 locations open for the next 18 months. This is partly due to the Beer Store's important role in the province's beverage container return system. The existing 10-year agreement with the Beer Store was set to expire Dec. 31, 2025.

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