The LCBO has announced a 4.4% increase in the 'cost of service' fee for brewers, effective April 1, impacting beer prices across Ontario's retail outlets, bars, and restaurants. This announcement coincides with the provincial election campaign and has drawn criticism from the craft beer sector, which argues that the increase will ultimately burden consumers. Although retailers may choose not to pass this fee to customers, local brewers warn that it will still likely lead to higher beer prices, affecting sales and profits.
Retailers are not obligated to pass on the fee increase to consumers, but a spokesperson for craft brewers says beer prices will rise as a result.
Ontario's craft beer industry is blasting the fee hike, saying it will increase prices for beer drinkers.
The LCBO's fee, called 'cost of service,' would rise to $8.78 on a 24-case of 473 ml cans of beer.
For beer sold at a retailer, the fee is currently set at 74.11 cents per litre and would rise to 77.37 cents per litre in April.
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