The recent closure of 12 Beer Store locations in Ontario has raised concerns for consumers who may need to rely more on convenience stores and grocers for alcohol purchases. This year, nearly 80 Beer Store locations have shut down, prompting some independent grocers to reconsider their alcohol sales due to new regulations. Starting January 1, grocery stores that sell alcohol will also be required to accept returns of empty bottles and cans.

David LaMantia, a third-generation grocer from Lindsay, Ontario, plans to exit the alcohol market when the new laws take effect. His store, LaMantia’s Country Market Fresh, has been in operation since 1928. "Are we going to take back empties? No. I mean, the government may have the luxury of not being concerned about food safety for their customers, but we certainly are. So I can’t have contaminated products coming back into my store," he stated.

LaMantia highlighted that empty beer cans and wine bottles often return in unsanitary conditions, potentially containing debris, broken glass, and other contaminants. He explained, "There’s an opportunity cost. I need really two areas. I need an area to receive it initially, when the customer returns these items, and then a place in the backroom storage area … pending it being picked up."

Gordon Dean, who operates five stores under the name Mike Dean Local Grocer, has been collecting empties since November. He expressed his discomfort with the situation, saying, "I’m not a fan. We sell fresh food. We’ve made our careers and our livings in selling fresh groceries, and it really just does not mix with dirty empties in the same building." He added that the presence of dirty containers poses a food safety risk.

Dean suggested that a separate storage area could help, but he still finds it problematic. "I’m doing it because the government requires me to do it, but I’ve been saying since the start, this is just a bad idea," he said.

The bins used to transport the empties also raise concerns. Dean noted, "They don’t get washed in the Beer Store’s process of handling returns. They don’t consider the food safety aspect at all. These come into our buildings gross and dirty and filled with residual broken glass, residual juices and beer and wine leftovers."

Many grocers are hesitant to continue selling alcohol under these new conditions. Dean mentioned that many of his peers have expressed intentions to stop selling beer and wine. "Most of my friends own grocery stores in the province, and at least half of them have … firmly said they’re done, if this actually comes to fruition. They won’t be staying in the beer and wine business. They just aren’t comfortable doing it."

With the decline of Beer Store locations, grocers may face increased pressure to handle empty returns. The Beer Store's operational report indicates a drop from 424 locations two years ago to 407 currently. Meanwhile, the LCBO has added eight locations, totaling 688. Ontario mandates that the Beer Store maintain at least 300 locations by the end of 2025, but it retains the right to close any store after January 1, 2026.

Industry representatives are advocating against the new empty return requirement. Gary Sands, senior vice-president at the Canadian Federation of Independent Grocers, suggested that LCBO stores should accept returns instead. "The last time I checked, they don’t sell food, but they also don’t have to accept empties. Why? Why can’t the LCBO, as a government agency, take them back? They don’t have to worry about the food safety issue. We’ve never received an explanation on that," he said.

Michael Zabaneh, vice-president of sustainability at the Retail Council of Canada, pointed out that grocery stores face higher alcohol prices compared to bars and convenience stores. "Retailers are at a complete disadvantage," he said. "If grocers exit, shoppers will lose the convenience of picking up a six-pack at the grocery store, and face fewer places to buy alcohol. And with The Beer Store winding down, there’ll be less places to return alcohol containers."

In response to these concerns, Colin Blachar, director of media at Ontario’s Minister of Finance, stated that over 400 grocery stores, LCBOs, and convenience stores currently participate in the Ontario Deposit Return Program, with expectations for growth in the coming months. This program aims to provide more options for consumers looking to return containers.