Ontario rebate reduces cost of beverage alcohol license for small grocers
Ontario is giving small grocers a bigger rebate on licences to sell beverage alcohol.
The Alcohol and Gaming Commission of Ontario (AGCO) raised its annual rebate for eligible grocery stores to $2,750, up from $2,250. That effectively cuts the cost of a grocery store licence from $3,250 to $500 per year—the same amount licensed convenience stores pay—through 2030.
The rebate, effective April 1, applies to licences issued on or after June 17, 2024, for stores with less than $1 billion in combined global revenue across affiliated retail operations.
The AGCO first introduced the rebate program in summer 2024.
Of the rebate increase, the provincial regulator said in an emailed statement to Canadian Grocer: “This change is part of the AGCO's commitment to fostering industry sustainability and innovation by providing supports and flexibility for small businesses.”
The licence fee of $3,250 also remains unchanged from 2024, as the AGCO for the second consecutive year waived its scheduled annual increase. Alongside the boosted rebate, the fee freeze lowers the barrier for smaller grocers to sell beer, wine and ready-to-drink beverages.
According to publicly available AGCO data counted by Canadian Grocer’s sister publication, Convenience Store News Canada, there are currently about 1,117 active grocery store licences in Ontario, up from 1,069 reported in October 2025.
