Ford's push to expand alcohol sales early to cost province $612M, budget watchdog says

The Ford government's push to get beer, wine and ready-made cocktails into convenience stores ahead of schedule will cost taxpayers more than $600 million, the province's budget watchdog says.

The finding was included in a new report Monday by the Financial Accountability Office (FAO) that comes just one day before Premier Doug Ford is set to trigger an early election in the province. His move last May to accelerate the rollout of expanded alcohol sales first ignited speculation he could be preparing to take voters to the polls ahead of the fixed June 2026 election date.

In all, liberalized alcohol sales are expected to cost the province roughly $1.4 billion by 2030, the FAO said.

Of that topline figure, $817 million relates to the original plan to liberalize alcohol sales in Ontario by 2026. Meanwhile, $612 million is the estimated cost of Ford's decision last May to speed up the rollout.

That's nearly three times the amount the Progressive Conservative government said it would cost to move up the timeline by about 16 months. The Ministry of Finance said an "early implementation agreement" with The Beer Store involves Ontario paying the company up to $225 million to help it keep stores open and workers employed.

In its report, the FAO also said there will also be a $215-million cost as a result of lower tax revenues as grocery, big box and convenience stores are not subject to beer, wine and spirits taxes.

As well, the FAO said there will be $172 million in lower net income to the LCBO. While there will be a $1.1 billion increase in wholesale LCBO revenue, there will also be an approximately $812 million decline in LCBO retail revenue, a $192 million cost to give wholesale discounts to new retailers, $150 million in service rebates to brewers, $105 million in higher operating expenses, and $22 million in higher recycling fees.

With the campaign period set to begin Wednesday, the opposition pounced on the opportunity to frame the FAO's findings as evidence of financial mismanagement.

Liberal Leader Bonnie Crombie said it shows Ford has the wrong priorities.

"What a disastrous waste of money. Once again, Doug Ford has been caught red handed," she said in a statement, adding the premier's priority was handing taxpayer money to "big beer companies and his American billionaire buddies who own 7-11 and Costco, instead of getting people a family doctor."

Green Party Leader Mike Schreiner said it's indicative of Ford's general spending patterns.

"Two billion dollars for a waterfront spa in Toronto, $3.2 billion on rebate cheques that are going to millionaires and billionaires — meanwhile our health-care system crumbles and housing starts are bottoming out," Schreiner wrote in a statement.

NDP Leader Marit Stiles said the price tag shows Ford is not the shrewd operator he sets himself out to be.

"This is another example of Doug Ford and the Conservatives not being able to make a good deal for Ontarians," she said. "Doug Ford likes to pretend like he's some great negotiator and he obviously can't get a good deal done."

Anne Kothawala, president and CEO of the Convenience Industry Council of Canada, said the alcohol expansion has provided a much-needed boost to the convenience sector as year-over-year December sales increased by 15 per cent from 2023 to 2024.

"Our store operators are excited to finally offer this product to customers and see the increased foot traffic from this move," Kothawala wrote in a statement.

"The report ignores the research about the impact of expansion on job creation and additional taxation into the provincial coffers."