Newly uncovered documents reveal the planned alcohol price increases in Ontario originated directly from the Ford government, contradicting claims that the LCBO acted independently. A letter from Finance Minister Peter Bethlenfalvy explicitly detailed markup requirements that would have significantly raised costs for consumers and businesses alike.
Government Directive Exposed
The controversy began when the LCBO announced wholesale pricing changes in October that would take effect January 1, 2026. After immediate backlash from restaurants, bars and retailers, the government delayed implementation until April 1, 2026 and attempted to distance itself from the decision.
However, a letter dated October 15 from Finance Minister Peter Bethlenfalvy to LCBO Chair Carmine Nigro shows the government was directly responsible for the pricing structure. The minister specified exact markup percentages for different alcohol categories, leaving no room for LCBO interpretation.
Staggering Price Increases Revealed
Industry analysis indicates the proposed changes would have dramatic consequences for consumers and businesses. According to the Ontario Restaurant Hotel and Motel Association, prices would increase by 10-15% at minimum, with some products facing even steeper hikes.
The most severe impacts would affect draught beer, with major brands like Sleeman, Molson and Labatt facing 40% increases while craft brewers could see prices jump by as much as 70%. The complex markup structure varies significantly by beverage type, creating an uneven playing field.
Contradicting Ford's Promises
The price hike plan represents a clear violation of Premier Doug Ford's repeated commitment to never raise taxes. While government officials might argue these are fees rather than taxes, the practical effect remains the same: Ontario consumers will pay more for beer, wine and spirits due to government action.
This move also contradicts Ford's May 2024 promise to conduct a comprehensive review of alcohol taxes and fees aimed at creating a fairer, more competitive marketplace. That review was supposed to simplify Prohibition-era rules but was never completed, replaced instead by these haphazard markup changes.
The Ford government has made significant improvements to alcohol retail in Ontario, but this pricing decision represents a step backward. Consumers deserve the lower prices and better selection available in provinces like Quebec, Alberta and British Columbia, where liquor boards achieve higher per-capita returns while charging less.
