If April cracked open the door, May kicked it wide open.
The last two months have been a turning point for Ontario’s food and drink world. Tariffs upended supply chains. Budgets boosted wineries and breweries. The LCBO finally entered the 21st century. From Niagara topping national restaurant lists to Quebec earning its first Michelin stars, Canadian food and beverage is having a global moment.
What does it all mean for your business? Opportunity. If you know where to look. Below, we unpack the biggest April and May developments and what they mean for producers, restaurateurs, and drinks lovers across Ontario.
Tariffs Turn Ontario Wine into an “Eh-List” Celebrity
When life gave Ontario a trade war, the LCBO made local wine the star of the show.
What happened
The Canada/ U.S. tariff fight in March led the LCBO to yank all American wines, beers, and spirits off the shelves. The surprise upside? Ontario’s own VQA wines swooped in to fill the void. Big time! In fact, Ontario VQA wine sales by dollar jumped 62% in late winter 2025 compared to the same period a year prior. The LCBO doubled down with a patriotic push: a new “Eh List” page online highlighting 3,000+ Canadian-made products, plus maple leaf signage in stores to help shoppers spot local bottles. According to the St. Catharines Standard, VQA reds spiked 71% and whites 67% in sales, with sparklers up 28%. All told, the great import swap of 2025 handed homegrown wineries an unexpected moment in the spotlight.
Why it matters
This forced experiment proved that when imports vanish, locals can shine. Consumers aren’t just tolerating Ontario wines, they’re embracing them in droves when given the nudge. It’s a patriotic buying streak that could have lasting effects, boosting confidence in Canadian labels. Even grape growers are hopeful the trend translates into more demand for Ontario-grown grapes (Ontario’s 2024 farmgate grape value was about $104 million). Plus, with Ontario’s recent expansion of wine sales into hundreds of grocery and big-box store, local producers now have more outlets than ever to keep the momentum going.
What to do now
- Wineries & Producers: Ride this wave! Make sure your Ontario origin is front and center in marketing. Tell your story! Why your terroir, your family, your wine, because the local love is real and storytelling sells. Consider special “support local” promotions; those maple leaf tags are basically free advertising.
- Restaurants & Bars: Feature Ontario wines proudly on menus as direct replacements for any U.S. listings you lost. Swap that Napa Cab for a Niagara Cab Franc and train staff to share its story. Emphasize the local angle, after all, 78% of Canadian consumers say buying local is important to them, and many see it as a way to bolster the national economy. That emotional connection can turn a necessary menu change into a selling point.
Mod Wine Co. POV
There is now hard proof that consumers will drink to homegrown quality when imports go M.I.A. Think of it as a twist on “drink Canadian”, enforced by politics, embraced by the people. Our take? Tariff or no tariff, Ontario producers should milk this moment for all it’s worth. Today it’s trade policy driving consumers to VQA; tomorrow it could just be a habit. Time to ensure it sticks like a splash of red on a white tablecloth.
Price Floor Follies: Cheap Wine Gets Pricier, Spirits Get a Free Pass
Ontario’s April 1st alcohol pricing tweaks mean your well drinks and budget bottles aren’t what they used to be.
What happened
On April 1, the Ontario government pulled a pricing switcheroo that has everyone from liquor vendors to pub owners double-checking their math. In a nutshell: minimum retail prices (MRPs) were removed for spirits and spirit-based RTDs, while the minimum price for wine and cider (and wine-based RTDs) went up. Beer’s floor price? Unchanged (so the buck-a-beer lives to see another day… for now). The LCBO confirmed that any product below the new legal price floor for wine and cider automatically got its shelf price bumped up in April. Meanwhile, that dusty bottom-shelf vodka or canned cocktail can potentially drop in price since the province lifted the price floor for spirits entirely. And just to sweeten the brewers’ mood: a planned 4.4% hike in the beer tax (cost-of-service fee) was paused.
Why it matters
This policy update could subtly reshuffle what consumers drink and how businesses strategize. The higher price floor on wine and cider squeezes the low-end segment. Say goodbye to ultra-cheap $7 bottles of plonk; they’re now a few dimes pricier by law. That might nudge cost-conscious shoppers (including restaurants stocking house wine) toward other options, possibly “drinking less but better” or even pivoting to spirits/beer where the floor is lower.
On the flip side, small craft distillers and big liquor brands alike suddenly have more flexibility to compete on price, potentially sparking a price war on well liquor or RTD cocktails. In short, bargain booze seekers could swap that boxed wine for a mixed 6-pack or a value vodka. For businesses, margins and pricing strategies need a revisit.
What to do now
- Wineries/Cideries: If you produce value-oriented products, ensure your quality and branding justify the (now slightly higher) price. Consider adding perceived value like refreshing the packaging or tout local ingredients to keep bargain hunters onboard. Also, watch the sales data: if the budget segment softens, you might pivot focus to mid-tier or premium lines where quality-over-quantity trends are stronger.
- Bars/Restaurants: Don’t panic about your rail spirits. The lack of a price floor could actually mean distributor promotions or bulk deals ahead on liquor. Keep an eye out for any cost savings and consider passing a bit of that on in popular cocktails (or upselling a better spirit for the same price). For wines, re-engineer that house wine list: if the cheapest bottles cost more now, maybe it’s time to upgrade your “house pour” image. Diners won’t mind a small price hike if the value is evident. Explain any menu price tweaks honestly as guests appreciate transparency, especially when you frame it as maintaining quality.
- Everyone: This is a good moment to review pricing across your menu or portfolio. The government just forced a pricing change. Use that as an excuse to ensure your pricing still makes sense for your margins and market positioning.
Mod Wine Co. POV
Only in Ontario could we get a policy that makes vodka cranberries a steal while hard cider costs more. The idea of “affordable alcohol” apparently now comes with an asterisk: some exclusions apply, see: wine. From our seat, it’s a bizarre move, practically inviting penny-wise drinkers to explore gin instead of Gewürztraminer. But there’s a silver lining for quality-focused producers: when rock-bottom options inch up in price, the gap between cheap-and-cheerful and craft-and-fabulous narrows. That’s your cue to swoop in with the “why not spend a few bucks more for something local and lovely?” narrative. If nothing else, this shake-up proves that in booze, as in life, change is the only constant and Ontario’s drinkers will adapt with their wallets. So keep it crafty, keep it quality, and remember: a rising price floor can lift all margins.
It is official, the Tax Holiday Boosted Restaurant Recovery
Short-term gains, long-term uncertainty. How a temporary tax break gave restaurants a lift but tariffs and economic jitters are clouding 2025’s outlook.
What happened
After two rollercoaster pandemic years and a brief tax holiday sugar rush, Canada’s restaurant sector was optimistic for 2025, until the U.S.-Canada tariff showdown showed up like an unwanted guest. In early May, Restaurants Canada released a sobering quarterly outlook: they revised 2025 foodservice sales forecasts into negative territory, now expecting a contract of 0.4% to 1.5% instead of modest growth.
In dollar terms, we’re talking roughly $98–99 billion in 2025 sales, down from a pre-tariff projection of $100B. Why the downgrade? Blame the booze trade war and general economic jitters – uncertainty is keeping diners (and the industry) cautious. Many restaurant operators say if tariffs drag on for a year, they’ll tighten belts: 71% plan to cut non-essentials, 63% will likely hike menu prices, and 50% might pause expansions or renos. It’s a mood killer, to say the least.
Yet, it’s not all doom and gloom. The year kicked off strong thanks to a temporary GST/HST tax holiday on dining out, which boosted January foodservice sales by 4.3% (highest jump since 2023) and cut early-year restaurant bankruptcy filings in half.
Employment in the sector even hit its highest since pre-COVID. But that was then; as spring progressed, the tariff trouble started casting a shadow over these gains. Restaurants Canada is urging the new federal government to step in suggesting such moves as making restaurant meals permanently tax-free, easing interprovincial booze barriers, and scrapping retaliatory tariffs on hospitality supplies.
Lofty goals, but their message is clear: the industry needs a lifeline to weather what could be a tough year.
On top of that, Canada’s tipping culture is facing questions. With Ontario’s servers now earning $17.20 minimum wage (set to go up October 2025) and diners weary of ever-higher tip prompts, some operators are exploring a reset.
Why it matters
For Ontario’s wineries, breweries, and distillers, if restaurants are not doing well, suppliers are not doing well.. A contracting foodservice market means fewer placements and lower volume moves in bars and eateries especially for premium products that rely on robust dine-out culture. If patrons dine out less or spend more cautiously, restaurants may simplify drink menus, trim higher-end options, or seek deals. On-premise sales are a key revenue stream for many craft producers, so a shaky restaurant sector means you might need to bolster other channels (retail, DTC) to hit your numbers. For restaurateurs, the forecast is a warning to be agile with costs and creative with revenue: you might not get the 2025 you hoped for, so plan for a slower pace. The upside? Those willing to adapt (with strategic pricing, unique experiences, or diversified income streams like merch or meal kits) can still thrive while others pause. Remember, even a flat or down market has winners. Usually the scrappy and strategic.
What to do now
- Producers: Strengthen your Plan B sales channels. If restaurants scale back orders, can you ramp up direct-to-consumer sales or LCBO listings? Also, support your restaurant clients: offer by-the-glass promotions, staff training, or merchandising that helps them sell your product. If tariffs make certain imported inputs pricey, emphasize that your product is local and tariff-free. In short, be the friend the hospitality industry needs. It could secure your tap handle or wine-by-the-glass spot even in lean times.
- Restaurants/Bars: Sharpen your pencil on expenses and menu engineering. If you haven’t already, identify which menu items drive profit and which just drive up food cost. Streamline the latter. Consider smaller, more frequently updated menus to manage inventory tightly. But don’t cut the fun: when consumers go out less, they choose places that offer something special. Maybe it’s a unique local wine you can’t buy in stores, a cocktail flight inspired by the latest bingeable TV show (hello, White Lotus cocktail craze), or prix-fixe pairing nights that feel like an event. Give guests an experience worth leaving home (and paying) for. Monitor your pricing. A modest increase might be unavoidable, but pair it with value (tasting notes, larger pours, freebies) to soften the blow.
Mod Wine Co. POV
If there’s one thing the past few years taught us, it’s that this industry can take a punch. A tariff tantrum causing a mild recession in restaurant-land? Frustrating and scary, sure, but Ontario’s food and bev pros are nothing if not resilient. Think of 2025 as a year to play defense and catch up on the fundamentals. Lean on your local network like wineries, breweries, eateries supporting each other, because a united front is harder to knock down. Our advice: take the outlook seriously, but don’t stop innovating. A little storm can clear the air and reward the bold, just keep an umbrella handy (preferably one in a tiki cocktail)!
LCBO Gateway: A New Digital Doorway for Producers
A long-overdue tech upgrade promises to cut red tape and speed up business for Ontario’s wineries, breweries, and distillers if the LCBO can keep up.
In a bid to shed its “paperwork palace” image, the LCBO is launching Gateway: a one-stop online portal to make life easier for Ontario booze makers and sellers.
What happened
The Liquor Control Board of Ontario making tech headlines? Pinch yourself, it’s true. LCBO President & CEO George Soleas announced a new vendor platform called “LCBO Gateway” at the Ontario Craft Wine Conference on April 23. Slated to roll out later this year, this centralized portal aims to streamline how Canadian alcohol producers do business with the LCBO. Think of it as finally stepping into the 21st century: one login to handle product listings, inventory updates, sales data, and more. You know, rather than today’s maze of forms, emails, and the occasional carrier pigeon. Soleas pitched Gateway as part of a broader “business transformation” at LCBO, promising a “more seamless experience” for suppliers and trade partners.
In the same breath, the LCBO is looking to improve ordering systems for convenience stores and grocery partners selling booze, meaning fewer late-night texts about missing Coors Light at a 7-Eleven. It’s an ambitious double-down on digital, aimed at both the frontline sellers and the back-end suppliers.
Why it matters
If you’re an Ontario winery, brewery, or distillery, you know the struggle of navigating LCBO bureaucracy. A modern, efficient vendor portal could be a game changer for small and mid-size producers. Imagine instant access to sales numbers, smoother product submissions, or timely alerts when your product is low in stock across stores. Less time fighting red tape means more time focusing on production and marketing.
For restaurants and bars, indirect benefits could include faster product flow (the LCBO supplies many licensees) and possibly quicker listings of new, interesting local products that previously got lost in paperwork.
Convenience stores and grocers, now more involved in alcohol retail, should get a more user-friendly ordering system, which means fewer empty shelves and happier customers grabbing a bottle of Ontario wine with their groceries. Overall, a nimbler LCBO could help local products hit the market faster and more reliably, benefiting the entire supply chain from producer to consumer.
What to do now
- Producers: Stay tuned and get involved. The LCBO Gateway will likely have onboarding sessions. Be first in line! If there’s a beta program or feedback loop, raise your hand. Your input could shape features that matter to you (like, say, a panic button for when your holiday shipment is stuck in customs). In the meantime, ensure your digital house is in order: update your product data, high-res images, and pricing info, so when Gateway goes live, you can hit the ground running.
- Retailers (Restaurants, Bars, Stores): While you won’t interact with Gateway directly, you should feel its effects. Keep communication open with your reps. They might have improved info or timelines on product availability. If you’ve been frustrated with how slow or opaque special orders or new listings are, politely let them know you’re excited for any new efficiencies. Your enthusiasm (and feedback on current pain points) can trickle up and encourage the LCBO to prioritize the right fixes.
- Embrace Tech: Whether you’re a producer or a seller, take this as a cue. The industry is (finally) embracing digital tools. You should, too. Inventory management apps, online marketplaces, social selling, even AI sommeliers are all part of the new normal. Don’t be the last one faxing an order form because “that’s how it’s always been.”
Mod Wine Co. POV
We’ll confess: hearing “LCBO” and “seamless experience” in the same sentence gave us a spit-take. But we’re also eternally optimistic and genuinely thrilled to see our good friends at 55 Lake Shore trying to shake off the dust. A shiny new portal could mean fewer 4AM wake-ups to snag a release slot and more power to the little guys to manage their destiny at the liquor store. We just hope “Gateway” doesn’t turn into the “Gatekeeper”. The intent here is to simplify, not add another layer.Our cheeky take: LCBO saw the world moving online and said, “Hold my beer (and wine, and RTDs)… we got this.” If they pull it off, Ontario’s booze biz might just run smoother than a well-aged whisky. And if not, well, at least the conference donuts were good. In any case, props to the LCBO for opening a new door. We’ll be stepping through with cautious optimism and a glass in hand.
The Budget Break We’ve All Been Waiting For: Ontario Budget Pours Relief for Wineries & Bars
With $175M in grape support and a wholesale discount bump, Ontario’s 2025 budget delivers big wins for local wine and hospitality, finally matching policy with promise.
What happened
Ontario’s 2025 budget brought real money to the table. The province is rolling out a $175 million, five-year Ontario Grape Support Program aimed at doubling the domestic grape content in blended wines. Add to that, the rebates for winery-direct sales, tax cuts for craft brewers, and the long-awaited LCBO wholesale discount bump, now 15% for bars and restaurants (up from 10%).
For bars and restaurants, the budget temporarily boosts the LCBO wholesale discount from 10% to 15%, effectively pouring a 5% cost reduction on every bottle they stock. All these moves come as Ontario accepts slimmer liquor revenues (LCBO income is projected to plunge from $2.5 billion in 2022 to $1.9 billion this year) in order to shore up local businesses amid the Canada–U.S. trade issues.
Why it matters
This is the strongest signal in years that the province sees value in supporting its homegrown beverage producers. With more funding, less red tape, and lower costs for bars buying Ontario product, it’s a golden hour for local. It also means better margins, more cellar door leverage, and less reliance on LCBO-only traffic.
What to do now
- Wineries/Producers: If you make blended wine, start sourcing more Ontario fruit now. Maximize the rebates on direct sales and refresh your tasting room strategy. Get ready to prove your value when those extra 5% margins land on- and off-premise. And keep your receipts! Document how you use these funds or savings to show the impact (this could help press your case for future industry support).
- Restaurants/Bars: Consider this your opportunity to feature more Ontario wine and beer without hurting your margins. Pass some savings to guests, or reinvest in better selections. Either way, make that 5% count.
Mod Wine Co. POV
Ontario just put its money where our mouth is. After years of producers begging for a break, it’s finally a moment where good policy meets good business. Use it well, because a well-timed pivot now could set you up for the next five years.
Quick Hits: April and May’s Snippets
Hooters Files Chapter 11: The iconic chain Hooters declared bankruptcy in the U.S. but they are not going away quietly.. A franchisee group, including the original founders, plans to buy about 100 of the 305 restaurants to keep the brand alive. Here is our take away.
Gen Z Marketing Wake-Up Call: Sober curious or just broke? Either way, Gen Z is keeping marketers on their toes. New research shows hard seltzer is Gen Z’s beverage of choice. 34% of legal Gen Z’ers say they reach for seltzers first and they’re big on “better-for-you” drinks and brands with a social conscience. Translation: if you want the youth vote (and dollar), make it flavorful, low-octane, and authentic.
James Beard Buzz: The 2025 James Beard Award finalists were announced, sparking heated debates among foodies everywhere. No Canadian chefs made the US-heavy list (womp womp), but the trends are telling: casual tasting menus, bakeries in the spotlight, and diverse voices leading kitchens. For restaurateurs, it’s a reminder that storytelling and uniqueness win hearts and awards. (Pro tip: Toronto and Montreal have plenty of homegrown stars; support them, no passport needed.
Provinces Sign Alcohol Trade Deal: On May 14, Ontario Premier Doug Ford and Manitoba Premier Wab Kinew inked a bilateral memorandum of understanding to tear down interprovincial trade barriers, including in booze. The agreement commits both governments to implement direct-to-consumer alcohol sales by June 30, following similar pacts Ontario signed with Nova Scotia and New Brunswick. This ongoing effort to scrap internal trade restrictions is designed to expand market access for Ontario brewers, winemakers and distillers across Canadian provinces.
Craft Brewers Hail Huge Tax Cut: Ontario’s craft beer industry won big in the 2025 budget. The Ontario Craft Brewers (OCB) association announced that craft brewers’ excise taxes will be cut by 50% under the new measures. OCB President Scott Simmons called it a “game changer” for over 340 local breweries, noting the sector represents 80% of Ontario’s brewing jobs. The immediate tax relief should help small breweries invest, create jobs and offer more Ontario-made beer to consumers, even as U.S. aluminum tariffs and rising costs have squeezed margins.
Pearl Morissette Tops Canada’s 100 Best. Again.: Pearl Morissette in Niagara claimed the top spot on Canada’s 100 Best Restaurants list for 2025, with Alo, Edulis, and Quetzal also cracking the top 10. In total, 40 Ontario restaurants made the cut. More than any other province. It’s proof that Ontario is leading the national conversation on culinary excellence. And with many of these restaurants spotlighting local wine, beer, and spirits, it’s a halo effect for producers across the region
Toronto Takes Over the Best Bar List: Toronto showed up big on the 2025 North America’s 50 Best Bars list. Bar Pompette ranked #7, Civil Liberties #21, and Mother landed back at #44. Pompette also took home the Art of Hospitality Award.
Quebec Earns Its First Michelin Stars: For the first time, Quebec has joined the Michelin Guide with nine restaurants earning stars. Tanière in Quebec City scored two, making it just the second Canadian restaurant to ever achieve that feat. Montreal and Rimouski also claimed wins, and three Quebec establishments earned Green Stars for sustainability. Our hot take? We loved seeing Quebec get the nod but Nat had a few things to say about it.
Haraku Ramen’s “One Noodle”: A 3.5-metre-long, unbreakable noodle designed for hands-free slurping with gamers slurping their way through Twitch streams and TikTok trends. One Noodle is a brilliant marriage of meme culture and modern snacking, and it’s a reminder that food that entertains can outperform food that’s just… good. Especially with Gen Z and digital-first audiences. It’s absurd, it’s brilliant, and it’s a masterclass in knowing your market.
