A Short History of the LCBO

The Liquor Control Board of Ontario (LCBO) has been a fixture in Ontario since 1927. As a government-run organization, the LCBO is responsible for the sale and distribution of alcoholic beverages throughout the province. Over the years, it has played a significant role in shaping Ontario’s drinking culture and has been a major contributor to the province’s economy. Ontario is where Ada and I live, so you will see many references to it throughout this blog.

Key Takeaways

• The LCBO was created in 1927 to regulate the sale of alcohol in Ontario.
• The LCBO has played a significant role in shaping Ontario’s drinking culture and has been a major contributor to the province’s economy.
• The Liquor Control Act gave the LCBO the power to control the sale, transportation, and delivery of alcoholic beverages in Ontario.

How is the LCBO and VQA related?

The LCBO (Liquor Control Board of Ontario) and VQA (Vintners Quality Alliance) are related in that the LCBO is responsible for the retail sale of wine in Ontario, and the VQA is responsible for regulating the quality and authenticity of Ontario wines. The LCBO sells VQA wines, which are wines that have been certified by the VQA as meeting certain quality standards. The VQA also sets the standards for grape growing and winemaking in Ontario and oversees the labeling and marketing of VQA wines. So, while the LCBO is the retailer of Ontario wines, the VQA is responsible for ensuring that those wines meet certain quality standards.

Origins and Prohibition Era

The LCBO’s origins can be traced back to the Prohibition Era in Ontario, which began in 1916. The government’s decision to ban the sale and consumption of alcohol was met with widespread resistance, and the province soon realized that it needed a more effective way to regulate the sale of alcohol. In 1927, the Liquor Control Act was passed, which created the LCBO and gave it the power to control the sale, transportation, and delivery of alcoholic beverages in Ontario.

Ontario Temperance Act

The history of the Liquor Control Board of Ontario (LCBO) dates back to the Ontario Temperance Act, which was passed in 1916. The act prohibited the sale and consumption of alcohol in Ontario. The government believed that prohibiting alcohol would reduce crime, poverty, and other social problems. However, the act was not successful in achieving its goals. Instead, it led to an increase in organized crime and illegal alcohol production and distribution.

Establishment of the Liquor Control Board of Ontario

In 1927, the government of Ontario repealed the Ontario Temperance Act and replaced it with the Liquor Control Act. The act established the Liquor Control Board of Ontario (LCBO) to control the sale, transportation, and delivery of alcoholic beverages in Ontario. It was created to provide a more lenient system that would allow responsible individuals to consume alcohol in a controlled manner.

During the early years of the LCBO, the board’s main focus was to regulate the sale of alcohol and to ensure that it was only sold to responsible individuals. They established strict rules and regulations for the sale of alcohol, including age limits and limits on the amount of alcohol that could be purchased at one time.

Prohibition

Prohibition was a period in Ontario’s history when the sale and consumption of alcohol were prohibited. The period lasted from 1916 to 1927, and it was marked by an increase in organized crime and illegal alcohol production and distribution. The government of Ontario realized that prohibition was not working, and it decided to establish the LCBO to provide a more lenient system that would allow responsible individuals to consume alcohol in a controlled manner.

Overall, the establishment of the LCBO marked a significant change in Ontario’s history. The board’s strict regulations and rules helped to reduce the negative effects of alcohol consumption, and it provided a more controlled and responsible way for individuals to purchase and consume alcohol.

Post-Prohibition Developments

Introduction of Permits

After the end of prohibition in Ontario in 1927, the LCBO was responsible for issuing permits to establishments that wished to sell liquor, including hotels, restaurants, and bars. These permits were required for the sale of all types of liquor, including beer, wine, and spirits.

The introduction of permits was a significant development in the post-prohibition era, as it allowed the LCBO to regulate the sale of alcohol and ensure that it was being sold responsibly. The permits were issued based on several factors, including the location of the establishment, the type of liquor being sold, and the owner’s history of compliance with liquor laws.

Transition to Retailer

Over time, the LCBO began to take on a more active role in the sale of alcohol, transitioning from a permit issuer to a retailer. In 1962, the LCBO opened its first retail store, offering customers a wide selection of beer, wine, and spirits. This move was in response to a growing demand for liquor in the province, and it allowed the LCBO to better control the sale of alcohol.

A personal note here– I have fond memories from when I was a small boy in the 1960s, when my Dad would walk me to the LCBO. I had to stay outside, but I could see my Dad filling in the little cards with a short pencil. He would then take the card to the man at the counter and his order was put together behind the counter and everything was well bagged so you couldn’t see the bottles.

Rick Blythe

Today, the LCBO operates over 660 retail stores across the province, making it the largest alcohol retailer in Ontario. The stores offer a wide selection of products, including local and international wines, craft beers, and premium spirits. The LCBO also operates an online store, allowing customers to purchase alcohol from the comfort of their own homes.

Overall, the transition from permit issuer to retailer was a significant development in the history of the LCBO. It allowed the organization to better control the sale of alcohol and ensure that it was being sold responsibly. Today, the LCBO continues to play an important role in the sale and regulation of liquor in Ontario.

Expansion and Modernization

The LCBO began a comprehensive modernization program in 2012, investing $1 billion to upgrade its retail stores, warehouses, and distribution centers. The program included the development of new stores, renovations of existing stores, and the introduction of new technology to improve the shopping experience.

The new stores were designed with a focus on customer convenience and accessibility. They feature wider aisles, better lighting, and more prominent signage to help customers find what they need quickly and easily. The stores also have a more modern and sophisticated look, with sleeker displays and a wider range of products.

Introduction of Online Platform

In 2016, the LCBO launched its online platform, LCBO.com, which allowed customers to purchase products online and have them delivered to their doorstep. This was a significant step forward for the LCBO, as it allowed them to reach customers who were unable to visit a physical store.

LCBO.com offers a wide range of products, including local and international wines, beers, and spirits. Customers can browse products by category, price, and region, and can also read reviews and ratings from other customers. The platform also offers a range of delivery options, including home delivery and pick-up at an LCBO store.

Since its launch, LCBO.com has become an essential part of LCBO’s business, accounting for a growing percentage of overall sales. The platform has also helped the LCBO to better understand its customer’s needs and preferences, which has allowed them to improve their product offerings and customer service.

LCBO as a Retailer

As a retailer, the LCBO is one of the largest in the world, offering a wide range of products including wine, beer, spirits, and cider. Their mandate is to provide Ontarians with a safe, responsible, and enjoyable shopping experience.

Range of Products

Their VINTAGES division sources fine wines and premium spirits from all over the globe, making it easy for customers to discover new and exciting products. They also offer a wide selection of local and craft beers, ciders, and spirits, supporting Ontario’s beverage alcohol industry.

Customer Service Excellence

At the LCBO, they take pride in providing excellent customer service. They advertise that knowledgeable staff are trained to help customers find the perfect product for any occasion. They offer tastings and events to help customers discover new products and learn more about the products they love. Their online store and mobile app make it easy for customers to browse and purchase products from the comfort of their own homes.

LCBO in the Community

As a government enterprise, the LCBO is committed to giving back to the community. They claim to have a long history of supporting health, education, and local initiatives throughout Ontario.

Health and Education Initiatives

The LCBO is dedicated to promoting responsible drinking and reducing alcohol-related harm. The LCBO runs several health and education initiatives to promote responsible drinking and help prevent alcohol abuse. Some of these initiatives include:

• The “Deflate the Elephant” campaign, aims to raise awareness about the dangers of binge drinking and the importance of responsible drinking.
• The “Pour it On” program, provides training to bartenders and servers on how to serve alcohol responsibly and prevent alcohol-related harm.
• The “DrinkSmart” campaign, which provides tips and resources for responsible drinking and helps people make informed decisions about alcohol.

The LCBO also supports education initiatives throughout Ontario. The LCBO runs several programs to support education and literacy, including:

• The “Raise a Glass to Literacy” program, supports literacy programs throughout Ontario.
• The “Toast to Education” scholarship program, provides scholarships to students pursuing post-secondary education.

Support for Local Producers

The LCBO is committed to supporting local producers and promoting Ontario-made products. They work closely with local producers to help them develop and market their products. The LCBO also runs several programs to promote local products, including:

• The “Local Flavours” program, features a selection of Ontario-made products in LCBO stores.
• The “VQA” program, promotes Ontario wines and helps consumers identify Ontario-made wines.

By supporting local producers, the LCBO is helping to create jobs and support local communities throughout Ontario.

Economic Impact

Contribution to Ontario’s Economy

As the largest purchaser and retailer of alcohol in Ontario and one of the largest in the world, the Liquor Control Board of Ontario (LCBO) plays a significant role in contributing to the province’s economy. The LCBO is a self-financing entity that operates under the authority of the Ministry of Finance. In the 2020-2021 fiscal year, the LCBO generated $3.6 billion in revenue, with a net income of $2.4 billion.

One of the ways the LCBO contributes to the economy is by supporting Ontario’s beverage alcohol industry. The LCBO works closely with local producers to ensure their products are available in LCBO stores. In 2020-2021, the LCBO purchased $455 million worth of Ontario-made products, which helped support local jobs and businesses.

In addition to supporting local producers, the LCBO also contributes to the economy by providing employment opportunities. As of March 2021, the LCBO had over 8,000 employees across Ontario. The LCBO is committed to providing a safe and inclusive workplace and offers a range of benefits to its employees.

Annual Reports

The LCBO publishes an annual report that provides detailed information on its financial performance and operations. The report includes information on the LCBO’s revenue, net income, and dividend payments to the Ontario government. The report also provides an overview of the LCBO’s operations, including its retail network, supply chain, and social responsibility initiatives.

Financial Performance

The LCBO’s financial performance has been strong in recent years. In the 2020-2021 fiscal year, the LCBO generated $3.6 billion in revenue, with a net income of $2.4 billion. The LCBO also paid a dividend of $2.2 billion to the Ontario government, which is used to fund important public services such as healthcare and education.

Overall, the LCBO’s contribution to Ontario’s economy is significant. By supporting local producers, providing employment opportunities, and generating revenue for the government, the LCBO plays an important role in the province’s economic landscape.

Partnership with Grocery Stores

In 2019, the LCBO announced a partnership with select grocery stores to sell beer and cider. This partnership allows customers to purchase beer and cider at participating grocery stores, making it more convenient for consumers to purchase alcohol. The LCBO continues to work with grocery stores to expand this program and provide more options for customers.

Partnerships with Bars and Restaurants

The LCBO has also partnered with bars and restaurants to provide customers with a wider selection of products. Through its Special Occasion Permit program, the LCBO allows bars and restaurants to sell alcohol at events such as weddings, corporate events, and private parties. This program provides customers with a wider selection of products and allows bars and restaurants to offer more customized drink menus.

Frequently Asked Questions