Convenience Stores: Beer Buying Options Explored

The sale of beer in convenience stores is a highly regulated topic that varies across different jurisdictions. In the United States, for instance, the sale of alcohol in convenience and grocery stores is a common occurrence, but the specific regulations and restrictions differ from state to state. For instance, in Utah, only beer with an alcohol by volume of less than 3.2% can be sold in private outlets, while in Kansas, grocery stores are only permitted to sell beer with a maximum alcohol content of 3.2%. On the other hand, Ontario, Canada, has recently expanded its alcohol marketplace, allowing convenience stores to sell beer, wine, and coolers, in addition to grocery stores. This change is expected to provide consumers with more choice and convenience.

Beer sales in convenience stores in Ontario, Canada

Previously, Ontarians primarily purchased beer from The Beer Store, a privately owned retailer, or Liquor Control Board of Ontario (LCBO) stores, which are government-run. However, the new regulations have led to a significant increase in the number of outlets where beer can be bought. As of September 5, 2024, 4,180 convenience stores across Ontario have been licensed to sell alcohol, with 307 of them located in Toronto alone. This expansion is expected to bring added convenience to consumers but has also raised concerns about increased social and health issues associated with more accessible alcohol.

To obtain a licence to sell alcohol, convenience stores must follow specific steps and comply with regulations. The Alcohol and Gaming Commission of Ontario (AGCO) oversees the licensing process, offering two types of licences: the Convenience Store Licence for stores up to 4,000 square feet and the Grocery Store Licence for larger stores. Applicants must determine their eligibility, understand the requirements and fees, and complete the application process. Once a licence is obtained, stores must purchase their beverage alcohol products from the LCBO, the exclusive wholesaler for all beverage alcohol products sold to licensed convenience stores in the province.

It is important to note that despite the expanded sales, there are still restrictions in place. Alcohol sales in convenience stores are limited to the hours between 7 a.m. and 11 p.m., and staff involved in selling alcohol must be 18 or older and complete a training program. Additionally, stores are required to carry a certain percentage of products from small producers, with 20% of beer, ciders, and ready-to-drink cocktails, and 10% of wine, coming from small businesses.

The introduction of beer sales in convenience stores in Ontario marks a significant shift in the province's alcohol market, offering increased accessibility to consumers while also raising considerations about potential social and health impacts.

Alcohol licensing in the US

In general, there are two types of liquor licenses: on-premises consumption (bar and restaurant) and off-premises consumption (bottle sales). There are also different classes of licenses depending on the type of alcohol being sold, such as beer-and-wine licenses and tavern (bar) liquor licenses. The cost of a license can range from $300 to $14,000, depending on the state and type of license. Licenses typically need to be renewed annually, and the renewal fee may be as high as the initial license fee.

The process for obtaining a liquor license can be complicated and time-consuming, and there may be a limited number of licenses available in some states. In addition to the license itself, there may be other costs associated with the application process, such as zoning permits, building permits, and signage permits. The time it takes to obtain a license can vary from a few weeks to several months, or even years if there is a waitlist.

Some states, such as California, have a department of Alcoholic Beverage Control that regulates the sale and distribution of alcohol. Other states, such as Texas, have a separate Alcoholic Beverage Commission. It is important for businesses to work with the appropriate state and local agencies to determine the specific requirements and process for obtaining a liquor license.

Alcohol sales in grocery stores in Ontario, Canada

However, the profitability of alcohol sales in grocery stores has been impacted by rising levels of theft and thin margins. As a result, some grocery stores in Toronto have stopped selling alcohol altogether. According to the Retail Council of Canada, theft levels have cut into the profitability of alcohol sales, and industry experts note that profits on alcohol sales are often surprisingly small.

In August 2024, Ontario expanded the number of retail locations where alcohol could be sold, allowing licensed convenience, grocery, and big-box grocery stores to sell beer, wine, cider, coolers, seltzers, and other low-alcohol ready-to-drink beverages. This expansion was part of the government's initiative to provide consumers with more choice and convenience.

To obtain a license to sell alcohol, retailers must apply to the Alcohol and Gaming Commission of Ontario (AGCO) and choose between a Convenience Store Licence and a Grocery Store Licence, depending on their retail floor space. The application process includes determining eligibility, understanding requirements and costs, and submitting the application with all fees paid. Once approved, retailers must purchase products through their business account with the Liquor Control Board of Ontario (LCBO), the exclusive wholesaler of retail beverage alcohol for convenience and grocery stores.

Staff involved in the sale, delivery, or taking orders for alcohol must be 18 years of age or older and complete an AGCO Board-approved training program. Alcohol can only be sold during specific hours, typically from 7 am to 11 pm, to customers of legal drinking age, which is 19 years in Ontario.

Alcohol sales in convenience stores in the US

Alcohol sales in convenience stores are a common sight across the US, but the rules and regulations vary from state to state. In some states, like Utah, Mississippi, and Vermont, there is a generic off-premises sales permit that allows any establishment, including convenience stores, to sell beer, wine, and/or spirits. Other states, like Connecticut and New Hampshire, group convenience stores with grocery stores under the same licensing requirements, meaning that convenience stores must have a majority of their sales from "grocery items" such as food.

Some states have specific rules regarding alcohol sales in convenience stores. For example, in Michigan, "food convenience stores" can receive a license to sell beer and wine for off-premises consumption, but if the store also sells gasoline, additional conditions must be met. In Pennsylvania, grocery stores were previously only allowed to sell wine and spirits through a state-operated outlet within the store, but as of June 2016, licensed grocers can sell up to four bottles of wine directly to consumers at a separate cash register.

There has been a recent push in some states to expand alcohol sales in convenience and grocery stores. For example, in Oklahoma, voters approved a state constitutional amendment in 2016 to allow grocery and convenience stores to sell alcoholic beverages above 3.2% alcohol by volume, which will take effect in October 2018. However, this change has been met with legal challenges from the Retail Liquor Association of Oklahoma. Similarly, in Kansas, there have been multiple proposals to allow grocery and convenience stores to sell all forms of beer, wine, and spirits, but these have been opposed by local liquor store owners and have not yet passed.

While the expansion of alcohol sales in convenience and grocery stores can bring increased convenience for consumers and financial opportunities for small businesses, there are also concerns about the potential negative consequences. The Centers for Disease Control Community Preventive Services Task Force recommends limiting alcohol outlet density to reduce excessive alcohol consumption and related harms. Additionally, increased outlet density can lead to concerns about theft, particularly by minors, as seen in Washington State after it privatized liquor sales in 2012. Ultimately, each state must decide on the balance between economic benefits and public health and safety concerns when it comes to alcohol sales in convenience and grocery stores.

Alcohol sales in convenience stores in the UK

In England, for example, there are different types of licenses that convenience stores can obtain to sell alcohol. Some stores may have a license to sell beer and cider, while others may have a license to sell a full range of alcoholic beverages, including wine and spirits. The number of stores that can sell alcohol is also regulated, and there may be restrictions on the proximity of these stores to schools or daycares.

In Scotland, the sale of alcohol in convenience stores is also regulated. There are over 300 Day-Today convenience stores in Scotland that sell alcohol, and the United Wholesale (Scotland) symbol group supplies many of these stores.

In Wales, the sale of alcohol in convenience stores is similarly regulated, and Tesco (Booker Group) has a presence in this market.

Overall, the sale of alcohol in convenience stores in the UK is subject to regional variations in licensing and regulations, and the availability of alcoholic beverages may differ across the country.

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