Temporary changes to alcohol regulation throughout Canada

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Temporary changes to alcohol regulation throughout Canada

Temporary changes to alcohol regulation throughout Canada

April 24, 2020

In the past several weeks, each province in Canada has declared a state of emergency in response to the spread of the novel coronavirus (COVID-19). Many businesses have been ordered to shutdown, including bars, restaurants and liquor retail stores, in some instances.

In response to these shutdowns, provincial governments have enacted a number of temporary measures and amendments to the liquor laws in each province, in support of the liquor industry and its participants.

This document outlines some of the changes to the liquor laws in Canada, effective as of April 20, 2020. Given the evolving nature of policies during the public health pandemic, please contact us for up-to-date information on the temporary liquor laws in each province.

Province	Update
Alberta	Liquor-related essential services. The Alberta government has deemed the following liquor-related businesses in Alberta to be “essential services”, meaning they are allowed to remain open to the public provided they have the proper risk mitigation measures in place: Restaurants and other food preparation facilities, including those with alcohol service, only for delivery or takeout (no dining room service); Liquor retail outlets, manufacturers and producers, as well as warehousers, distributors, and Alberta Gaming, Liquor and Cannabis (AGLC) operations.¹ Liquor takeout and delivery. Licensed restaurants and bars in Alberta are now allowed to sell liquor as part of takeout and delivery services without the purchase of food. A number of restrictions apply to the amended regulation, including that liquor cannot be delivered by drive-thru; mixed drinks cannot be provided (liquor must be delivered in a sealed, commercial container as supplied by the liquor supplier or agency); and, for draught beer, the cap design for the container (e.g., on a growler or crowler) must demonstrate the container has not been opened during transportation.² Where public attendance is prohibited, AGLC will accept requests to temporarily convert Class B and C licenses for recreational facilities, entertainment centres and clubs, among others, to Class A licenses to allow for liquor off-sales (curb-side pick-up) and delivery.³ Liquor retail stores. As an essential service, liquor retail stores in Alberta are allowed to operate. However, given that liquor stores are independently owned in Alberta, retailers may choose to remain open or closed on a case-by-case basis.
British Columbia	Liquor related essential services. The British Columbia (BC) government has deemed the following liquor-related businesses in BC to be “essential services”, meaning they are allowed and encouraged to remain open: Restaurants and other facilities that prepare and serve food and liquor, for takeout and delivery only; Processing, manufacturing, storage, transportation and distribution of foods, feed products and beverages; and Liquor retail stores.⁴ Liquor deliveries. Food primary and liquor primary licensees are allowed to sell and deliver packaged liquor for off-site consumption to patrons with the purchase of a meal. The policy change will remain in effect until July 15, 2020.⁵ The following related policies also apply, among others: Restaurants are allowed to use unemployed servers to deliver liquor products;⁶ and Delivery services are allowed to purchase liquor on behalf of a customer from a liquor store or from any licensee authorized to sell in unopened containers, and deliver and sell that liquor to a customer, provided the delivery does not take place between 11:30 p.m. and 7:00 a.m.⁷ Liquor service hours. The hours of liquor service are temporarily extended for licensee retail stores, wine stores, special wine stores and manufacturer onsite store endorsements to begin no earlier than 7:00 a.m. and end no later than 11:00 p.m.⁸ Hand sanitizer. The BC government has put out directives explicitly stating that distillery licensees, brewery licensees and winery licensees are allowed to use their establishments to manufacture and/or package, sell or donate alcohol-based hand sanitizer until July 15, 2020. Interested licensees must consider additional requirements required by Health Canada and the Canada Revenue Agency.⁹ Liquor retail stores. As an essential service, BC liquor stores remain open with adjusted hours of operation.¹⁰ Additionally, the BC government has temporarily extended hours of retail liquor service in BC to accommodate greater physical distancing for seniors and people who are immuno-compromised. Liquor retailers, such as wine stores or private liquor stores, throughout the province are now allowed to temporarily operate between 7:00 a.m. and 11:00 p.m.¹¹
Manitoba	Restaurants and bars. The Manitoba government has ordered that hospitality premises, such as restaurants and bars, are required to limit their capacity to 50 patrons or half of their existing capacity, whichever is less.¹² Social occasion permits. Social occasion permit events are required to reduce the number of attendees to fewer than 50 people. The Liquor, Gaming and Cannabis Authority of Manitoba recommends that permit holders contact them about upcoming events. Permit holders may either cancel their events or reduce the number of attendees to fewer than 50 people. Those who decide to cancel, will be given a refund for their permit fee.¹³ In-store brewing standards. Authorized in-store brewing retailers and their staff are temporarily permitted to produce or package products on behalf of their customers. This includes adding ingredients, mixing and bottling finished products for customers. In-store brewing retailers may store finished packaged wine or beer at their premises until customers can safely pick up their purchases.¹⁴ Liquor retail stores. Manitoba Liquor Marts remain open, but Manitoba Liquor & Lotteries, the province’s Crown retailer, has implemented reduced hours of operation at Liquor Marts across the province.¹⁵
New Brunswick	Liquor takeout and delivery. Food and beverage-serving businesses in New Brunswick may offer takeout and delivery, but are prohibited from allowing on-premises dining. Lounges, special facilities, clubs and uvin/ubrews licensed under the Liquor Control Act are prohibited from admitting patrons. All businesses required to cease admitting patrons are expressly permitted to sell online or over the phone, and arrange delivery or pick-up of purchases. Door-to-door soliciting is prohibited, but delivery is permitted.¹⁶ Liquor retail stores. New Brunswick liquor stores are closed on Sundays, but remain open with reduced hours from Monday through Saturday.¹⁷
Newfoundland and Labrador	Liquor retail stores. Newfoundland and Labrador Liquor Corporation (NLC) stores are closed to the general public until further notice. NLC is providing a temporary service, which allows for the ordering and pick-up of product at Corporate NLC store locations. Customers may order by calling their preferred NLC Liquor Store directly or by completing an order online.¹⁸
Nova Scotia	Drinking establishments, liquor retail stores and manufacturer retail stores. The Nova Scotia government has required that all drinking establishments, winery and distillery tasting rooms, and craft taprooms in the province close down. Private liquor stores can operate, and craft breweries, wineries and distilleries are permitted to sell products from their storefronts.¹⁹
Ontario	Liquor-related essential workplaces. The Ontario government considers the following liquor-related businesses to be “essential workplaces”, meaning they can remain open to the public: Restaurants and other businesses that primarily sell food and beverages, only for takeout, drive-through and delivery service; Beer, wine and liquor stores; and Businesses that supply the essential services above with the support, products, supplies, systems or services necessary to operate, including processing, packaging, warehousing, distribution, delivery and maintenance.²⁰ Liquor takeout and delivery. Liquor sales licensees (i.e., licensed bars and restaurants in Ontario) are allowed to sell beer, wine and spirits as part of a food order for takeout or delivery in Ontario. Licensees are not required to apply, request permission or notify the Alcohol and Gaming Commission of Ontario (AGCO) to participate. The liquor sold for takeout or delivery may be offered through a third party, provided they are acting on behalf of the licensee. The liquor must be sold in a sealed and unopened container.²¹ Liquor takeout and delivery hours. Liquor sales licensees are allowed to sell alcohol with food takeout and delivery orders between the hours of 9:00 a.m. and 11:00 p.m. The extended hours of operation, and takeout and delivery rules will last until December 31, 2020.²² Extended grocery store and manufacturer retail store hours. Authorized grocery stores and liquor manufacturer retail stores in Ontario are now allowed to begin selling alcohol at 7:00 a.m. in order to support early shopping programs for vulnerable people and to provide greater flexibility to retail stores.²³ AGCO licenses, authorizations and registrations. On March 18, the AGCO announced it would automatically extend the term of all active liquor licenses, authorizations and registrations by three months. On April 14, the AGCO announced it would further extend the same terms by an additional three months, for a total of six months. Licensees are not required to take any action or pay any additional fees to qualify for the extension.²⁴ Special occasion permits. Event-based permit holders (e.g., special occasion permit holders) are encouraged to contact the AGCO with any permit-specific inquiries. The AGCO will manage event-based permits on a case-by-case basis.²⁵ Liquor retail stores. All LCBO stores, Ontario’s government-owned liquor stores, will be closed on Mondays, and reduced hours are in effect from Tuesday to Sunday. LCBO Convenience Outlets are privately owned and, therefore, operating hours, if any, may vary.²⁶
Prince Edward Island	Liquor delivery program. Agency stores and Prince Edward Island Liquor Control Commission (PEILCC) licensed manufacturers (Vendors) on Prince Edward Island (PEI) are now allowed to deliver product directly to consumers on PEI in accordance with PEILCC guidance.²⁷ Liquor retail stores and hours for at-risk customers. Only certain PEI Liquor corporate retail stores remain open to the public with limited access. During this period, these stores will operate from 11:00 a.m. to 6:00 p.m. Monday to Saturday, and from 10:00 a.m. to 11:00 a.m., the stores will open to allow seniors and other at-risk customers to shop.²⁸
Québec	Liquor-related essential workplaces. The Québec government considers the following liquor-related businesses to be “priority businesses and services”, meaning they can remain open to the public and/or continue their operations: Restaurants and other food facilities that prepare and serve food, but only for delivery or takeaway, together with food delivery services; Grocery stores; Convenience stores; The Société des alcools du Québec stores (SAQ) Food production businesses – including drink production businesses; and Production of inputs necessary for priority businesses and services, including the ones listed above.²⁹ Liquor takeout and delivery services. The SAQ is allowed to sell and deliver packaged liquor to customers’ homes. Some restaurants and food facilities are also offering the takeout and delivery of alcohol with the purchase of a meal.³⁰ Liquor retail stores. SAQ stores and grocery stores are closed on Sundays, but will continue to operate from Monday to Saturday with reduced hours.³¹
Saskatchewan	Liquor takeout and delivery. Restaurants and bars in Saskatchewan are now allowed to provide takeout and delivery service of alcohol and food products, provided they maintain a two-metre distance between the employee and the customer who is picking up or receiving the order, among other requirements. Alcohol can only be sold in closed, sealed containers. Restaurants and bars selling alcohol for off-site consumption can determine their own prices, subject to minimum social reference pricing guidelines. Participants do not have to apply to the Saskatchewan Liquor and Gaming Authority (SLGA) for a permit to offer delivery service. Restaurants and bars can advertise that they offer this new “off-sale” service.³² Liquor delivery services. Delivery of liquor can be made by an employee of the licensed bar or restaurant, or by a business with a home delivery liquor permit. Delivery cannot be contracted out to a business that does not hold a home alcohol delivery permit. Bars and restaurants are advised to confirm that the delivery company holds a home alcohol delivery permit issued by the SLGA.³³ Special occasion permits. Many events are being cancelled due to precautions surrounding COVID-19. Permit holders are encouraged to advise the SLGA of their cancellations in order to process a refund.³⁴

Key contact

Simon Gauthier

Simon Gauthier Partner, MontréalMontréal
D +1 514 878 8866
Email me

simon.gauthier@dentons.com

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Temporary changes to alcohol regulation throughout Canada

Temporary changes to alcohol regulation throughout Canada

COVID-19 – Supporting our clients & communities

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