Ready for Ontario's Alcohol Market Expansion? Key Steps for Retailers and Franchise Owners

The Ontario government’s announcement to expand the ability to purchase alcoholic beverages brings new opportunities - and challenges - for retailers and franchise owners across the province.

According to an announcement on the Ontario government's website: "Starting in August, consumers will be able to purchase new products like coolers and other ready-to-drink beverages alongside more pack sizes at grocery stores that currently sell wine or beer, followed by new retailers being able to sell an increased selection of local, domestic and international alcohol products in a safe and responsible manner. By the end of October 2024, every convenience, grocery and big-box store in Ontario will be able to sell beer, cider, wine and ready-to-drink alcoholic beverages if they choose to do so.”

The deadline to prepare for this expanded ability to sell alcohol is fast approaching, leaving grocery and convenience stores looking to ready themselves and their facilities in a hurry. As a leader in multi-site rollouts, store buildouts, and permit acquisition, this is just the type of work DAVACO specializes in - which is why several of our clients have reached out to us for guidance.

While each client’s unique needs will vary, some aspects of necessary preparation will be the same across the board. Anyone looking to take advantage of this expanded alcohol sales opportunity will need to contend with:

Permitting

The Alcohol and Gaming Commission of Ontario (AGCO) will oversee the licensing and enforcement of the Liquor License and Control Act, 2019. The permit acquisition process involves meeting specific eligibility requirements and adhering to social responsibility standards.

The time required to obtain permits can vary significantly by region. In Ontario, the AGCO aims to process applications efficiently, but the complexity of the application and the completeness of the submitted documentation can impact timelines. On average, it can take from several weeks to a few months to secure the necessary permits, depending on the workload and specific requirements of each application.

Here are a few tips to speed up permit acquisition: 

1. Start Early: Since the process will take a minimum of several weeks, starting the permit application process well in advance of your planned rollout date is important to avoid potential delays if the permits take longer than expected.
2. Pay Attention to Detail In Documentation: Documents submitted with inaccurate or incomplete information can result in not only delays, but a denial of your permit request. Ensure all required documents are complete and accurate before submission. This attention to detail could mean the difference between your permit being granted or not.
3. Seek Professional Assistance: Consider hiring experts who are familiar with the local regulations and requirements in your region. The legal complexities of permitting can be daunting, and having someone on your side who understands how to navigate them can simplify the process and ensure it goes smoothly and efficiently.

While permit acquisition is one element of the permitting process, permit close-out and receiving a certificate of occupancy (C/O) is required before launching new alcohol sales. A delay in your C/O can put the entire project behind deadline. To close out your permit and obtain a C/O, be sure to:

1. Conduct Regular Inspections: Schedule and conduct regular inspections to ensure ongoing compliance with all regulatory requirements.
2. Maintain Clear Communication: Maintain clear and consistent communication with all stakeholders, including regulatory bodies, contractors, and store managers.
3. Track Your Details: Keep detailed records of all activities and ensure all documentation is readily accessible for inspections.

Store Space Allocations & Build Outs

To accommodate the expansion of alcohol sales, stores will need to rearrange their existing merchandise to make space for the new products, at the least. Many stores may need to undergo significant remodels or buildouts to make accommodations. Projects like this can include elements such as:

• Space Optimization: Reconfiguring existing store layouts to maximize space for new alcohol displays.
• Infrastructure Upgrades: Ensuring the store infrastructure is able to support the safe and efficient sale of alcoholic beverages, and upgrading it if necessary.
• Aesthetic Enhancements: Updating the store’s look and feel to create a welcoming environment for customers.

Fixture Display & Merchandising

Within the available space of the store allotted to these new alcohol products, proper fixture displays are needed to showcase the products and encourage sales. Fixture displays will require compliance with merchandising guidelines, which can vary by brand. Ensuring the seamless integration of these new products will require:

• Design and Installation: Appropriate fixtures that enhance product visibility and appeal come in standard and custom designs. Proper installation will ensure the stability of the display and safety of customers who interact with products housed there.
• Compliance: All displays must meet the merchandising guidelines of the products being shown, as well as meet the regulatory requirements for alcohol sales.
• Flexibility: As this opportunity for expanded alcohol sales unfolds, store owners may come to find that adjustments to their display layout or location will prove more profitable down the line. Flexibility in fixture designs to allow for adjustments, changes, or expansions will be valuable to facilitate that.

POS Systems

Point-of-sale systems are required for any product sales. They are the technological system which allows for customer check-out. At a minimum, every grocery or convenience store wishing to expand their alcohol sales alongside this new regulation will need to update their existing POS systems to integrate the SKUs of each new product they bring on.

Depending on the sales environment and how much more business the location will be conducting with the addition of these new products, additional modifications may make sense. Including:

• Self-Checkout Systems: Installation and integration of self-checkout kiosks can reduce wait times and improve operational efficiency, allowing for more customer checkouts without an increase in employee personnel.
• Digital Menu Boards: Implementation of dynamic menu boards can display real-time product information and promotions. Enhancing the customer experience in this way can boost sales through increased purchasing frequency as well as purchases of higher dollar values.

How DAVACO CANADA Can Assist During This Transition

DAVACO has over 34 years of experience serving the retail industry across North America, with a headquarters in Canada. Our expertise in buildouts, rollouts, and remodels for multisite commercial businesses makes us uniquely qualified to assist retailers in adapting to these new regulations. 

Our specialty services are designed to lower costs and increase go-to-market lead times while helping stores take full advantage of the increased sales opportunities accompanying these new regulations.

Our solutions encompass every aspect of the transition, from initial planning and permit acquisition to final inspections and launch.

By partnering with DAVACO, retailers can benefit from our:

• Expertise in Regulatory Compliance: We’ll help you navigate the complex regulatory landscape with ease to acquire permits, stay compliant, and get your C/O on-time for launch.
• Efficient Project Management: We'll coordinate all aspects of your transition, whether that’s store space allocation or expansion, fixture design and installation, or POS upgrades, to ensure timely and cost-effective execution.
• Scalable Solutions: Our services can be tailored to meet the specific needs of each client, regardless of the size or scope of the project. Our goal is always cost-effectiveness and efficiency, while delivering exceptional results.

As Ontario expands alcohol sales in convenience stores and other retail outlets, DAVACO is committed to supporting retailers through this transition, ensuring they meet regulatory requirements, optimize their operations, and capitalize on new market opportunities.

For more information on how DAVACO can assist your business with this transition, please contact us today. Together, we can ensure your store is ready to thrive in Ontario's expanded alcohol marketplace.

--

Erin Dunford is DAVACO's Director of Business Development in Canada. Contact Erin directly for more information or to begin the process of preparing your store for this new opportunity: Schedule a Call

Reference article: https://news.ontario.ca/en/release/1004633/ontario-delivering-choice-and-convenience-by-expanding-the-sale-of-alcoholic-beverages-starting-this-summer