Changes to allow Liquor Transfers between Related Liquor Licensed Establishments

As part of its commitment to support local restaurants, bars and liquor manufacturers, the Government of Ontario has amended Regulation 719 under the Liquor Licence Act to provide flexibility for liquor sales licensed establishments that have closed or are closing temporarily or permanently.

Effective today, February 11, 2021, liquor sales licensees (e.g. restaurants, bars and tied houses) may transfer open or closed alcohol from one licensed establishment to another, where the licence holder of both licensed establishments is the same, or the licence holders of the licensed establishment are affiliates. One of the licensees must notify the AGCO of the intention to transfer liquor 30 days before the transfer of liquor. No payment may be made for the liquor being transferred.

This reform is intended to provide flexibility to licensees in circumstances where one establishment has shut down or is shutting down temporarily or permanently, but another is being kept open. Before this change, licensees were not able to transfer an inventory of liquor bought under one liquor sales licence to another. Now, as a result of this change, licensees will have more flexibility to manage their businesses in certain circumstances, while facing less regulatory burden.

Starting on February 22, 2021, licensees will be required to submit an online notification for transfers through the iAGCO portal.

As part of the notification, licensees must provide the following information to the AGCO:

• the licence numbers that apply in respect of the two premises;

• the type, brand and quantity of liquor to be transferred;

• with respect to each container of liquor to be transferred, whether or not it will have been opened before the transfer; and

• whether the closure or imminent closure of the licensed premises from which the liquor is to be transferred is intended to be temporary or permanent.

Any conditions on a licence continue to apply and licensees must continue to meet all other existing requirements in the LLA and regulations. Please note, while this Information Bulletin highlights specific details associated with the change, licensees are encouraged to review the specific amendment to ensure that they are in compliance with all legislative and regulatory requirements.