It was a pretty big Summer. Tax cuts landed. Retail blew wide. Patios multiplied. Guests drank smarter (and sometimes not at all). Below, we keep the same Mod playbook you liked in May: What happened, Why it matters, What to do now, so you can skim, act, and win!
The Tax Cuts That Actually Change Your Math
What happened
On Aug 1, Ontario halved the spirits basic tax for on-site distillery sales (aka. at their own shop). Small-brewer beer taxes dropped roughly 50% per litre. The LCBO lowered markups to 32% on cider and many RTDs (ready-to-drink cans like vodka sodas) that are 7.1% alcohol or less. This means that certain Ontario-made products now cost less to produce and/or carry more margin headroom.
Why it matters
When taxes or markups go down, companies pay less to get their drinks onto shelves. That gives them two options:
Lower the price for you, the customer,
Or
Keep the price the same and have a little more profit (margin) so they can pay staff, make better products, or survive tough times.
Quick example:
If a cider used to cost a store $10 and the LCBO added 40%, the shelf price would be $14.
Now with a 32% markup, the price could be $13.20 or they could keep it at $14 and keep the extra 80 cents as margin.
Some Ontario spirits, beers, ciders, and ready-to-drink cans can now cost less to make or earn more profit. That can mean better prices for shoppers or stronger local businesses that can hire, grow, and keep making good stuff.
What to do now
- Test your prices on purpose: Try three options for each place you sell. Keep the same, –3%, and –5%. The LCBO might need a different plan than grocery/convenience.
- Pick the right timing: Change prices when the LCBO pricing window opens. Plan promotions after you’ve done the math, not before.
- Plan your packs: Offer a “discovery” 4-pack (great for trying) and a “weekend” 8- or 12-pack (great for sharing) so your prices make sense in steps.
Mod Wine Co. POV
Ontario just gave local producers a real lever to win. The winners won’t be the cheapest, they’ll be the clearest about why their product is worth it and the fastest to line up prices, packs, and promos.
Retail Went Wide: Convenience & Grocery, Year One
What happened
A year after convenience stores and grocery stores joined the party, Ontario is marching toward “up to 8,500” outlets. Rules about pack sizes (like 4-packs, 6-packs, 12-packs) got looser. Price transparency for the consumer is now instant and ruthless.
Why it matters
More stores doesn’t automatically mean you’ll sell more. Brands now deal with more data, more sales promos, and more fights for the best fridge space. If a brand doesn’t act like a professional packaged-goods company (organized, planned, data-driven), a competitor will do it better and win.
What to do now
- Focus: Pick 2–3 store chains (called “banners”) and 1–2 regions. Work them hard for 12 weeks to build strong sales before spreading out.
- Fridge plan (“cold-box”): Try to get eye-level shelf space for 8 weeks and bring signs/holders (POS) that the store can actually put up.
- Promo rhythm: Choose repeating promo months (for example Oct / Dec / Feb). Track how much sales jump during the promo and for two weeks after (the “halo”).
- Operations: Learn local container-return/recycling rules before you promise product to stores.
Mod Wine Co. POV
Retail just went from single-lane to six-lane. The fast lane is for brands that are neat and disciplined: clean packaging, clear pricing, strong execution. The messy brands will get stuck in traffic.
The Mocktail (and Flavor of the) Moment
What happened
Mocktails showed up on way more Canadian menus. Popular flavours: umami (like miso and seaweed), Korean/Vietnamese heat, and Latin comfort blends. Restaurants used batching (making parts ahead) to serve faster.
Why it matters
Mocktails aren’t just “juice with a fancy name.” They help include sober-curious guests, designated drivers, parents, athletes, and anyone who wants the ritual without the buzz – and they make good profit.
What to do now
- Build a small menu: 6–8 mocktails – 1 premium star, 3 mid-priced, 2 light “session” drinks.
- Batch the basics: make syrups, tea-based tannin mixes, and citrus-salt blends twice a week so service is quick.
- Write better names & descriptions: lead with flavours (e.g., “yuzu-ginger, white tea, bitter orange”) and then show 0%.
- For producers: include simple bar recipes with your non-alcohol product so bars buy by the case, not just one bottle.
Mod Wine Co. POV
Mocktails aren’t a trend that will fade; they’re a format. Treat them like your best cocktails: tight recipe, right glass, proper garnish, good story and…price them fairly!
Ops Reality Check: Costs, Wages & Patios
What happened
Unemployment went up a bit in midsummer. Eating out costs about 3.2–3.3% more than last year; grocery bills are about 27% higher than in 2020. Minimum wage becomes $17.60/hr on Oct 1, 2025. The Bank of Canada held at 2.75% (Jul 30), then cut to 2.50% (Sept 17) (borrowing’s a bit easier, not cheap). Patios still need city approval, AGCO notice, capacity signs, and heat safety plans. Pedal pubs (big group bikes) can get licenses; drivers need training.
Why it matters
Guests are value-hunting (fewer add-ons, smaller upgrades). Your labour costs more, and outdoor service has rules you must follow. If you don’t engineer profit (smart recipes, portions, and pricing), rising costs will eat your margins.
What to do now
- Menu sprint (2 weeks): Fix or cut the bottom third of low-profit items. Try portion ladders (S/M/L), smart swaps, and combo/value bundles.
- Price with purpose: Test small changes (+$0.50 or +$1) on hero items; add one premium and one budget option in each category.
- Labour plan: Re-forecast with $17.60/hr, cross-train 1 FOH + 1 BOH role, and batch prep staples (syrups, sauces, bases).
- Patio ready: Keep city approval on file, notify AGCO, post capacity, and have heat SOPs (water, shade, staff rotations).
- Value signals on the menu: Call out “fan-favourite,” “best value,” “shareable” and show mocktail + local seasonal features up front.
Mod Wine Co. POV
Margins aren’t gone. They’re hiding. Find them with good math and clean operations: tighten the menu, train your team, follow the patio rules (properly), and let your best-value items do the talking.
Marketing Rules Changed Mid-Scroll
What happened
Meta (Facebook/Instagram): alcohol ads must be age-gated to 19+ in Ontario and include responsible-drinking cues.
TikTok: alcohol content allowed with restricted ads to viewers 25 and up; retail/e-com is still tight. (And here’s a more in-depth outline of the Tiktok Alcohol Ad rules)
Google: allowed but restricted; location and age signals matter.
Why it matters
Even great content won’t run if it breaks the rules. If your landing posts don’t match the rules, you can annoy your audience or worse, get blocked.
What to do now
- Audit now and every quarter: age gates on Meta, clean landing pages, consistent disclaimers.
- Creator playbook: written usage rights, age-appropriate audiences, no glorifying drunkenness.
- Asset library: pre-approved photos/videos: no minors, no intoxication, no “drink to cope.”
Mod Wine Co. POV
Following rules doesn’t kill creativity; it matures it. Winners on social are funny, helpful, and compliant. Be all three.
DTC & Labels: The Quiet (But Real) Changes
What happened
Governments are working toward clearer direct-to-consumer (DTC) alcohol rules by spring 2026.
Natural Health Products label changes got pushed to 2028 (more time for functional mixers/ingredients).
A federal bill about cancer warnings on alcohol moved forward to committee (not law yet).
Why it matters
You’ll likely sell some products directly to customers in the future. Packaging takes time to redesign. Plan ahead. Health claims must be safe and legal.
What to do now
- Build the DTC plumbing: online cart, tax tool, age gate, shipping compliance, customer-service replies.
- Packaging calendar: plan redesigns now to avoid rush fees later.
- Claims discipline: benefits = okay; disease claims = not okay. Teach your social team.
Mod Wine Co. POV
Selling direct (DTC) isn’t extra. It helps you keep more profit and learn who your customers are. Your website needs: an age check (19+), taxes set for each province, shipping rules that couriers accept, and a simple plan for returns and customer emails. When the rules finally say “go,” the winners won’t be the loudest brands. They’ll be the ones who already built the infrastructure.
Quick Wins You Can Steal This Weeknd May’s Snippets
Producers: Make a one-page sheet showing old vs. new price math and a 3-month promo plan.
Restaurants: Feature one premium mocktail and one local seasonal drink. Take a great photo.
Everyone: Write a two-line origin story for your top product. People buy the story as much (if not more) as the thing itself.
Mod Wine Co. POV
This summer changed how Ontario sells and buys drinks. To win now:Get DTC-ready (before spring!)
Price with intent.
Show up where it counts.
Engineer menus for margin.
Our rule: First, improve what you already sell. Then add new channels that make everything else stronger.
