Ontario pays out full $225M to Beer Store as end of store closure commitment nears

The Ford government has officially paid out its full $225 million commitment to the Beer Store, Ministry of Finance officials have confirmed, marking the conclusion of a key cost to Ontario’s alcohol liberalization.

In early 2024, Ontario struck an agreement with the Beer Store to end its retail monopoly in the province, so grocery, convenience and big box stores could begin selling beer, wine and ready-to-drink beverages.

As part of the deal, the government agreed to set aside $225 million so the alcohol retailer could smoothly transition to a new market and protect jobs. The money came in exchange for keeping at least 300 stores open until the end of 2025.

For more than a year, there has been a steady flow of Beer Store closures, some in small towns, as the corporation has dripped out its shutdown plan and made claims to access the money the government set aside.

At the beginning of November, as part of the government’s Fall Economic Statement, officials with the Ministry of Finance said the entire $225 million pot had been used by the Beer Store.

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They said the claims would be audited, but that the full pot had been spent.

With the money gone and only a few weeks until the end of the year, a spokesperson for The Beer Store reiterated the company would stand by its commitment to keep 300 stores open until the end of December.

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They did not say if they would shut more — or all — of their locations in 2026.

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“In response to changing market conditions, The Beer Store made the difficult decision to close some retail locations in 2025,” the spokesperson said in a statement. “The Beer Store intends to honour the Early Implementation Agreement, keeping a minimum of 300 retail stores open until December 31, 2025.”

In all, 120 Beer Store locations have closed since the province allowed alcohol to be sold more widely in Ontario, a move it says has substantially boosted foot traffic in convenience stores.

Finance Minister Peter Bethlenfalvy said at the start of the month that he believed changes to the alcohol market had been successful.

“Modernization of our alcohol system has gone way better than even I expected — and I had very high expectations,” he said. “Six thousand more places you can buy beer, wine, ready-to-drink. Convenience stores tell us their revenues are up.”