OFA made a request to Finance Minister Bethlenfalvy to level the playing field for Ontario produced wine by removing the mark-up and wine levy for 100% Ontario Non-VQA wine and replace it with the same 6.1% LCBO administration fee applied to Vintners Quality Alliance (VQA) wine when delivering directly to a Licensee, such as bars, restaurants and hotels. OFA noted the imbalance in the fee paid by VQA wine compared to 100% Ontario produced non-VQA wine. Currently VQA wine is charged a 6.1% LCBO Administration fee while non-VQA wine is charged a 71.5% LCBO mark-up and $1.215 per bottle LCBO Wine Levy. As a result, a non-VQA winery selling direct to a Licensee receives approximately half of what a VQA winery would receive even though both products are 100% Ontario produced wine.
Submissions & Correspondence
OFA letter to the Finance Minister regarding the LCBO mark-up and wine levy imposed on Ontario non-VQA wine sales
Updated: February 6, 2023