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Ontario alcohol sales surge after US products pulled from LCBO shelves

Ontario alcohol sales surge after US products pulled from LCBO shelves

Sixteen months after US alcohol was pulled from LCBO shelves, the agency says sales of Ontario products have jumped by more than half a billion dollars in a year, led by a surge in Canadian whisky. But smaller local producers say it is mostly large, often foreign-owned brands that are cashing in.

It has been nearly a year and a half since every American product was stripped from the shelves of Ontario's liquor stores, and the agency that runs them says the shift has reshaped what Ontarians are pouring into their glasses. According to the LCBO, sales of Ontario-made products climbed by more than half a billion dollars in the first year alone, a jump spread across spirits, wine, beer and ready-made cocktails. At a flagship store in downtown Toronto, an aisle that was once lined with American bourbon now tells the story of that change.

The standout performer has been Canadian whisky, with sales up by more than 90 per cent as drinkers traded long-familiar labels for homegrown alternatives. The LCBO says it has added more than a thousand new Ontario options to its lineup this year, and the extra shelf space is visible on the ground. At the downtown location, an entire aisle has been cleared to make room for Canadian wines, most of them produced in Ontario.

Ontario's wineries have been among the clearest winners. Over the past year, sales of Ontario red wines rose by more than 50 per cent, while white wines were up by more than 40 per cent. The numbers point to a consumer base that, at least for now, has been willing to reach for a local bottle when the imported option they used to buy is no longer available.

Yet not everyone in the industry is convinced the windfall is being shared fairly. A local spirit maker, who also represents others in the sector, argued that it is mainly the larger producers who are cashing in, and that many of the brands benefiting are foreign-owned, Canadian in name but not fully Canadian-owned. Smaller and medium-sized producers, he said, simply are not seeing the same kind of lift, and he wishes the provincial government would do more to help them.

For those smaller operators, the frustration is that a rare opening may be slipping away. The industry representative described it as confusing that such a massive opportunity is going partly unrealized, noting that consumers clearly have an appetite to learn more about local makers, to connect with them and to understand their stories, but that there is little support in place to help those producers get their message out.

The reshuffled shelves have also created openings for other countries looking to fill the gap left by American brands. Among wines, producers from Australia, Chile and Argentina have seen the biggest boost, while Spanish, French and Italian labels have also gained ground. Irish products have benefited too, with Irish whiskey sales up 14 per cent, prompting Ireland's marketing team to sharpen its focus on Canada and lean on in-store sampling to win over new customers.

One measure that local distillers say genuinely helped was an online map launched by the Ontario government, showing shoppers where to buy local products, including from small producers' own shops, and one distillery owner said he is hoping for more ideas along those lines. The entire shift traces back to the trade dispute between Canada and the United States, which prompted the removal of American alcohol in the first place and continues to shape what does and does not reach Ontario's shelves.

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