TORONTO - Ontario grocers and The Beer Store have reached an agreement that will allow grocery retailers to avoid the obligation of collecting empty beer and wine containers from customers. This agreement, made public on Wednesday, comes just ahead of a January 1 deadline when some grocers had threatened to stop selling alcohol due to the recycling requirements.

Under the new deal, customers will still be able to return their empty containers for deposits at Beer Store locations. Grocers will not have to accept these returns in-store but will direct customers to the nearest Beer Store. This arrangement is expected to alleviate concerns raised by independent grocers regarding food safety, logistics, and costs associated with handling empties.

Gary Sands, senior vice president of policy and advocacy at the Canadian Federation of Independent Grocers, expressed relief over the agreement. "There’s no downside. We’re just delighted with this," he said. The deal provides grocers with three options: they can choose to accept empties, stop selling alcohol, or participate in the agreement with The Beer Store.

The agreement stipulates that grocers who opt in will pay 17 cents per container to The Beer Store. Additionally, signage will be placed in participating stores to inform customers about returning their empties to the nearest Beer Store. The Beer Store has committed to ensuring that a recycling location is available within 10 kilometers for most of the population.

Roy Benin, president and CEO of The Beer Store, stated, "This is positive news for consumers and the environment. We are leaders in operating a deposit return system with a great track record of customer service. This voluntary service agreement will allow Ontarians access to the empty alcohol return system that gets people their deposit money back."

The agreement is also seen as a significant step for the Ontario Deposit Return Program. Some grocers had warned they would refuse to accept empties by the January 1 deadline, coinciding with The Beer Store's ability to close an unlimited number of locations. The Retail Council of Canada noted that this deal will allow grocers to support the Ontario Deposit Return Program financially.

Kim Furlong, president and CEO of the Retail Council of Canada, remarked, "After months of negotiations, grocers and The Beer Store have reached a deal that keeps alcohol container recycling simple and dependable; a system that consumers know and expect."

The agreement follows months of discussions between brewers and grocers, facilitated by the government. These talks were prompted by a previous deal aimed at expanding alcohol sales to convenience stores and more grocery outlets. The earlier agreement had mandated that grocery stores more than five kilometers away from a Beer Store accept empty returns, a requirement that many grocers were not complying with.

Colin Blachar, a spokesperson for Finance Minister Peter Bethlenfalvy, welcomed the new agreement, calling it a win for both businesses and consumers. "This is another step forward in modernizing Ontario's alcohol marketplace and delivering more choice and convenience to the people of Ontario," he said.

While the total cost to grocers under the new agreement is still unclear, it is uncertain whether they will pass these costs onto consumers. Sands noted that independent grocers had been hesitant to apply for alcohol licenses due to the recycling requirements, and this resolution may encourage more to do so. "This ensures that we get back to what the original objective was, providing more choice and convenience for consumers," he added.

Convenience stores will remain exempt from the recycling requirements under this new agreement. Further details are expected as the implementation date approaches.