Why are Ontario beer stores closing, and where will all the empties go?

On Monday, The Beer Store announced it will be closing a dozen of its Ontario locations in two months’ time, on Oct. 19. It’s not the first such announcement from the retailer. Here’s what to know.

What locations are closing?

The 12 locations include two in Toronto and one in nearby North York, but also smaller communities. Towns that will see a Beer Store close include Bridgenorth, Eganville, Forest, Grand Bend, Harrow, Little Current, Markdale, Noëlville and Sauble Beach.

What will this mean for residents?

While Torontonians can easily pivot to another location, small-town residents may face more inconvenience.

Residents of Little Current on Manitoulin Island will have to travel 40 kilometres to Espanola for the nearest Beer Store after the closure, while those in Noelville, near French River, will have to go almost 50 kilometres to Sturgeon Falls. (Both towns are served by an LCBO outlet.)

Are these the only closures?

No. Since April, The Beer Store has made eight separate announcements of store closures, with a total of 77 locations being shut down. In each case, the closure date is two months from the announcement date.

What does The Beer Store say about it?

Each announcement mentions the “difficult decision” to close some locations, along with a similar statement from Ozzie Ahmed, retail vice-president.

The latest says: “Where we sell beer and collect empties in Ontario is changing. The Beer Store is modernizing to meet the changing marketplace and unfortunately this means making the hard decision to close retail locations. We know this is difficult news for customers and employees. As The Beer Store modernizes, our locations will continue to provide friendly customer service and a deposit return system that gets consumers their money back.

“The Beer Store recognizes the contributions our employees make to the business and in the communities where we operate. All efforts will be made to support employees through this process in alignment with commitments and agreements.”

Why is this happening?

Alcohol sales in Ontario have been changing in recent years, especially under Doug Ford’s Conservative government.

In late 2023, the Premier announced that sales of beer, wine, cider and ready-to-drink cocktails would be allowed in convenience stores and all grocery stores by 2026. Then last summer he announced that the phased expansion would begin even earlier, in August of 2024.

A 2015 agreement between the former Liberal government of Ontario and The Beer Store had given the retailer exclusive rights to sell 12- and 24-packs of beer until the end of this year. As part of the earlier expansion of alcohol sales, the province agreed to give The Beer Store up to $225 million.

In a press release at the time, the government said the money was “to make the necessary investments over the next 19 months to support a stable transition to a more open and convenient marketplace, including funding to protect jobs across the province and to keep The Beer Store locations open for the continued availability of recycling and bottle return.”

The agreement also included keeping at least 386 stores open until July of 2025, and at least 300 until Dec. 31, 2025.

The press release added: “ The Beer Store will continue to run the effective and efficient province-wide recycling program for alcoholic beverage containers until at least 2031.”

According to The Beer Store’s 2024 operational report , The Beer Store that year had 407 locations, down from 424 two years earlier. In the same time period, the LCBO added eight locations for a total of 688.

Where will people return their empties?

That’s the million-dollar (or, given the price of empties, 10-to-20- cent) question.

Ontario’s online alcohol sales finder shows that the town of Little Current has three locations other than The Beer Store to purchase beer — the LCBO, the Valu-Mart and the Manitoulin Brewing Company. However, only The Beer Store accepts the return of empties.

The province’s agreement with The Beer Store requires grocery stores that sell alcohol to begin accepting the return of empties no later than Jan. 1, 2026.

National Post has reached out to The Beer Store and the LCBO for additional comment.

With files from The Canadian Press

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