1. Education, Training & Awareness Strategy
Alcohol and Gaming Commission of Ontario
Rules and Processes Related to Manufacturer’s Licences
Liquor Industry/Related Stakeholders
December 9, 2016

2. Overview of Regulations and Rules for Wineries
Manufacturer’s Licences and related licences/authorizations
Tied House
“By the Glass”
Retail Sales Channels:
On-site Retail Stores
VQA Wine and/or Fruit Wine Sales at Farmers’ Markets
Wine Sales in Grocery Stores
Wine Content and Labelling Act – Compliance Assurance
iAGCO
Qs and As

3. Manufacturer’s Licences – Wineries

4. Manufacturer’s Licences
What is a Manufacturer’s Licence?
Manufacturers Licences are issued pursuant to the Liquor Licence Act.
The Registrar of Alcohol, Gaming and Racing issues Manufacturer’s Licences, which allows manufacturers to sell their beer, spirits or Ontario wines to the LCBO.
Eligibility criteria and requirements are outlined in the Liquor Licence Act (more info available at
Licences are valid for two years.
Manufacturer’s Licences

5. Manufacturer’s Licences
Compliance Assurance &
Maintaining Your Licence
Renewal every two years
Periodic inspections by AGCO inspectors
Remitting taxes to the Ministry of Finance
Audit for compliance with the Wine Content and Labelling Act, 2000
Complying with the Liquor Licence Act and its Regulations and the Registrar’s Liquor Advertising Guidelines and Sampling Guidelines
As of July 1, 2016, mandatory Smart Serve training for all persons involved in the the sale, service or sampling of liquor, or who are involved in taking orders for liquor from customers.
Manufacturer’s Licences

6. Manufacturer’s Licences
Recent Changes Affecting Manufacturers
(as of July 2016)
Mandatory Server Training
Manufacturer’s must ensure all persons involved in the the sale, service or sampling of liquor, or who are involved in taking orders for liquor from customers, successfully complete the Smart Serve training program. This includes:
Manufacturer’s representatives involved in taking orders from customers for the sale of liquor or in providing samples of liquor to customers;
Staff at on-site and off-site manufacturer’s retail store, or wine boutiques, involved in the sale or sampling of alcohol; and
Liquor sales licence holders, all managers, servers of beverage alcohol and security staff employed by the licence holder.
Smart Serve Ontario’s new retail alcohol sales training module was launched in November Visit for more information.
Manufacturer’s Licences

7. Licences Related to Manufacturer’s Licences
“Tied House” Liquor Sales Licence
Allows a manufacturer to host an on-site restaurant/establishment where the manufacturers products may be showcased on their own or with other brands or types of liquor.
Exemption from having to sell a variety of brands. Manufacturers with a tied house may also apply for a caterer’s endorsement.
Hours of liquor sales and service are 11am-2am on any day
If a manufacturer’s retail store is located on the same manufacturing site as a Tied House, the licensee may bring sealed, unopened liquor purchased from the retail store onto the licensed premises for the purposes of selling it to a patron. (i.e. restaurant patrons can pay for product from the retail store on their restaurant bill.)
Licences Related to Manufacturer’s Licences

8. Licences Related to Manufacturer’s Licences
Recent Changes Affecting Tied Houses
(as of July 2016)
Tied House Capacity Limits
Greater flexibility to set tied house capacity limits consistently with other liquor sales licences.
Will leverage information and assessments from local municipal building, fire and health departments to set capacity limits.
Catering Endorsements
Tied house licence holders, like other liquor sales licensees, are now permitted to apply for a caterer’s endorsement to conduct events at any eligible location (e.g. not just manufacturer’s site)
Ontario manufacturers or any third party individuals now permitted to apply for a liquor sales licence to operate a tied house at any qualifying manufacturing site.
Permitting Manufacturers to Hold More Than One Tied House Licence
Previously, manufacturers could obtain one liquor sales licence for one tied house across all of their manufacturing sites (or in some cases one tied house at two manufacturing locations if they were a manufacturer producing more than 10 million litres of wine).
Licences Related to Manufacturer’s Licences

9. Licences Related to Manufacturer’s Licences
“By the Glass” Limited Liquor Sales Licence
Allows manufacturers to sell and serve their products for consumption on-site, where the sale is primarily aimed at promoting the product or enhancing the tourism experience.
Quantities cannot exceed 142 ml (5 oz)
Wine may only be sold and served between 11:00 a.m. and 9 p.m. on any day.
A wine or beer manufacturing site may have both a Tied House and a Manufacturer´s Limited Liquor Sales Licence. Patrons are now permitted to move freely between the licensed areas with their beverages, however, licensees must ensure adherence to rules regarding the permissible hours of sale for each licence type.
Licences Related to Manufacturer’s Licences

10. Licences Related to Manufacturer’s Licences
Recent Changes affecting “By the Glass” Licences
(as of July 2016)
A More Seamless Visitor Experience at Manufacturing Sites
A manufacturer with both a tied house and by-the-glass licence may allow customers to move freely between these licensed areas with their beverages.
Patrons are permitted to carry and consume their beverages in the manufacturer’s adjacent retail store, where applicable.
Manufacturers must ensure adherence to rules regarding the permissible hours of sale for each licence type.
Licences Related to Manufacturer’s Licences

11. On-site Retail Store Authorizations

12. On-site Retail Store Authorizations
Eligibility Criteria and Requirements: 
Criteria and Requirements for on-site winery retail stores are outlined in the AGCO’s Winery Retail Store Information Guide:
Applicant must have a Manufacturer’s Licence
Store must be located on five acres of planted grapes
Products must meet the “Ontario wine” definition as outlined in the Liquor Licence Act
Store must be located on the same parcel of land as the applicant’s production site and the wine to be sold in the on-site store must be made by the applicant at that production site
Comply with the “made” requirement
On-site Retail Store Authorizations

13. On-site Retail Store Authorizations
Recent Changes Affecting On-Site Retail Store Operators:
(as of September 2016)
On-site Retail Stores at all Eligible Winery Manufacturing Sites
Manufacturers may operate more than one winery retail store, provided that each store is located at a production site of the manufacturer and the wine to be sold at the store complies with the “made” requirement.
More Than One On-Site Retail Store at Substantially Owned and Controlled Manufacturing Sites
The applicant must possess substantial ownership and control over the production site. Where the production site is owned and controlled by more than one licensed manufacturer, the applicant must demonstrate to the Registrar that it meets this requirement.
Where more than one retail store is located at the same production site, each licensed manufacturer must own and operate their own retail store and the store must be readily distinguishable from any other authorized retail store located at the same production site.
On-site Retail Store Authorizations

14. On-site Retail Store Authorizations
Recent Changes Affecting On-Site Retail Store Operators:
(as of January 2016)
Non-Liquor Products at On-Site Manufacturer Retail Stores
Registrar’s list of acceptable non-liquor products to be sold at On-Site stores has been updated.
New approach outlines broader item categories – more effectively helps manufacturers support local cultural, historical and culinary experiences.
Local Grape Content Requirements for Wineries Located Outside of Designated Viticultural Areas
Ontario wineries outside of Ontario’s three Designated Viticultural Areas are no longer required to produce at least 50% of their total wine production from grapes grown within the boundaries of the territorial division in which the winery is located.
All wineries in Ontario are eligible to operate an on-site retail store regardless of where in Ontario their grapes are grown, provided other eligibility requirements are met (e.g. 5 acres of planted grape, etc.).
On-site Retail Store Authorizations

15. VQA Wine and/or Fruit Wine Sales at Farmers’ Markets

16. VQA Wine and/or Fruit Wine Sales at Farmers’ Markets
Eligibility Criteria and Requirements
Criteria and Requirements for on-site winery retail stores are outlined in the AGCO’s Winery Retail Store Information Guide:
To be eligible to apply for an Authorization to Sell VQA Wine and/or Fruit Wine at a Farmers’ Market at an occasional extension of their on-site winery retail store within a farmers' market, a winery must:
Have a valid AGCO Manufacturer’s Licence
Operate an authorized on-site grape or fruit winery retail store
Produce VQA wine and/or fruit wine
VQA Wine and/or Fruit Wine Sales at Farmers’ Markets
AGCO’s
Wine in Farmer’s Market Program

17. VQA Wine and/or Fruit Wine Sales at Farmers’ Markets
What is a Farmers’ Market?
Defined as:
“A central location at which a group of persons who operate stalls or other food premises meet to sell or offer for sale to consumers products that include, without being restricted to, farm products, baked goods and preserved foods, and at which a substantial number of the persons operating the stalls or other food premises are producers of farm products who are primarily selling or offering for sale their own products.”
VQA Wine and/or Fruit Wine Sales at Farmers’ Markets
AGCO’s
Wine in Farmer’s Market Program

18. VQA Wine and/or Fruit Wine Sales at Farmers’ Markets
Compliance Assurance &
Conditions of Authorization
10 days notice of planned sales required by the AGCO
Unsold product must be returned to on-site retail store within 24 hours from the time it leaves the manufacturer’s store.
No cross-selling
Smart Serve training is required
Sales may be permitted during the farmers’ market hours
The Registrar’s Sampling Guidelines are applicable, including:
Sampling may be permitted during the farmers’ market hours
Sampling is restricted to the occasional extension
Only ancillary items permitted for sale at the on-site store may be sold
VQA Wine and/or Fruit Wine Sales at Farmers’ Markets
AGCO’s
Wine in Farmer’s Market Program

19. Sale of Wine in Grocery Stores

20. Wine Sales in Grocery Stores
Getting an Authorization
Grocers interested in selling wine, who have been successful in the LCBO’s competitive bidding process, must apply to the AGCO for an authorization.
Grocers must meet the requirements in Regulation 232/16 under the Liquor Control Act.
Wine Sales in Grocery Stores
Wine Sales in Grocery Stores

21. Wine Sales in Grocery Stores
Wine in Grocery Stores:
Role for Wineries
The AGCO is responsible for ensuring that alcohol sold in grocery stores is done responsibly and in accordance with Ontario’s regulatory framework, including requirements for hours of sale, sampling and advertising of liquor products in stores where wine is sold.
Grocers, manufacturers or their representatives may conduct sampling of any wine products they are authorized to sell regardless of whether or not it is currently stocked.
All products used for sampling will be purchased by the grocer.
Authorized grocers will not be permitted to request, demand or receive any monetary or non-monetary benefit from manufacturers.
All advertising of a manufacturer’s products must be paid for by the authorized grocer.
Wine Sales in Grocery Stores
Wine Sales in Grocery Stores

22. Wine Boutiques What is a wine boutique?
“Wine boutique” means a winery retail store,
(a) that is located inside the shopping area of a grocery store, and
(b) at which the winery is authorized to sell wine to the public under a supplementary wine authorization
Wineries with a valid Manufacturer’s Licence issued by the AGCO and valid off-site winery retail store authorizations for at least three off-site winery retails stores may be eligible to apply for a Supplementary Wine Authorization.
A Supplementary Wine Authorization permits eligible wineries to operate a wine boutique in a grocery store to sell their wine products and to sell VQA wine manufactured by another winery that owns fewer than three winery retail stores (excluding on-site retail stores)
The wine boutique display and its name must be distinct from the grocery store in which the boutique is located.
Wine must be displayed in a contiguous product display area, and may not display the grocer’s merchandise in the wine boutique.
Wine Boutiques

23. Criteria and Requirements for Operators
The criteria and requirements for VQA wine sales in a wine boutique are outlined in the AGCO’s Winery Retail Store Information Guide 
Wine boutique operators are subject to the same requirements rules that apply to their off-site winery retail store authorization (e.g. employee training and age requirements, permissible hours of sale, Sandy’s Law, etc.)
In addition, they must adhere to specific wine stock keeping requirements, packaging, sales targets and shelf space requirements and restrictions on promotions (see AGCO tip sheet – Wineries: Wine Boutiques in Grocery Stores)
Wine Boutiques

24. Criteria and Requirements for Operators (continued)
Wine Sales Targets: Wine boutique operators are required to achieve sales targets for VQA wine and non-owner wine.
During first 12 months of operation, operators must ensure that at least 10 per cent of the wine sold is VQA wine, and at least 20 per cent of the VQA wine is non-owner wine.
After the first 12 months of operations, at least 20 per cent of wine sold in all wine boutiques operated by the winery in a 12-month period must be VQA wine, of which 40 per cent is manufactured by non-owner wineries.
Wine Stock Keeping: there must be a variety of stock-keeping units of wine (excluding cider) offered for sale in the wine boutique, and at a minimum the variety must include the lesser of the following:
At least 25 stock-keeping units of VQA wine must be for wine manufactured by other wineries.
At least one-half of the stock-keeping units of VQA wine must be for wine manufactured by other wineries.
Wine Boutiques

25. Criteria and Requirements for Operators (continued)
Wine Shelf Space Requirements: Wine boutique operators must ensure that a certain proportion of products on display in the wine boutique are containers of VQA wine and non-owner wine.
At least 50 per cent of containers of wine on display in the wine boutique must be VQA wine, of which 50 per cent must be containers of non-owner VQA wine. In addition, at least 5 per cent of the containers of wine on display must be wine produced by small wineries. These percentages are assessed based on the wine on display in the wine boutique and do not include cider displayed by the grocery store in the beer and cider display area.
Wine Products and Packaging Requirements: Wine sold in wine boutiques may be sold in containers with a maximum size of 4 litres and a maximum of 18% alcohol by volume. Wine beverages cannot be sold. Cider with an alcohol content that is greater than 7.1% also cannot be sold.
Wine Boutiques

26. Audit of Wineries

27. Audit
As of January 1, 2002, the AGCO retained LCBO to provide audit services on behalf of AGCO.
These audits assist the AGCO assess compliance to:
Wine Content and Labelling Act
AGCO Winery Retail Store Authorization
Made Policy
25% of total annual sales volume are primarily fermented in fixed tanks at retail store site.
25% of total annual sales volume at retail store are primarily fermented in fixed tanks at retail store site.
At least one recognizable major winemaking step is carried out for the full content of each bottle to be sold at the winery retail store.
Requirements for Wine Sales at Farmers’ Market
Requirement for On-Site Retail Store to be located on at least 5 acres of planted grapes or fruit
Additional Requirements for Non-Grape Wineries
Audit Criteria

28. Audit Plan Audit Plan Fiscal 2016-17
The audit plan is prepared by LCBO and submitted to the AGCO for approval.
All wineries with an AGCO Retail Store Authorization are subject to at least one audit during the year
The current year’s plan is for the period April 2016 to March 2017 and includes 215 winery audits
In the 9 month period ended December 31, 2016, there have been a total of 24 non-compliance findings
Audit Plan

29. Audit Findings

30. Modern Regulator – Moving to Online Services
MyAGCO O A G C

32. iAGCO Online Services
Apply online; check application status
Secure
One account for multiple licences
Easily update your account information
Start, save and resume applications
Available 24/7
Attach electronic documents
Make payments online with credit card and Interac Online
View approved licences/ permits
Improved communication
Online notifications will be received for your renewals, missing docs, etc.
Website will be available in French and English

33. iAGCO Implementation

34. Questions

35. Want to reach us. Send us an email at:. connect@agco. on
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