Environmental activists have raised concerns about a recent deal between the Beer Store and grocery stores, suggesting that Ontario’s deposit return program may be in jeopardy. The diminishing presence of Beer Stores in communities across the province not only impacts alcohol sales but also limits locations for consumers to return empty containers and retrieve their deposits.
Although grocers with liquor licenses were slated to start accepting empties in the new year, a newly reached agreement exempts them from this obligation. This shift in policy has led to certain regions becoming Beer Store “deserts,” potentially resulting in decreased participation in the recycling program.
Karen Wirsig, a senior program manager at Environmental Defence, emphasized the importance of the Beer Store program, which has been instrumental for a century in facilitating the return of containers for reuse or recycling.
While the Ministry of Finance views the agreement as beneficial for businesses and consumers, concerns linger about reduced access to return points and the potential decline in participation rates. The future status of Beer Store closures remains uncertain, with no confirmation on additional closures beyond 2026.
The Beer Store has successfully managed a deposit return program since 1927, encompassing all packaged alcohol since 2007. Consumers pay a deposit when purchasing alcohol containers, which can be refunded upon return. The company reports a high return rate, with 1.6 billion containers collected in 2024.
The evolving alcohol market in Ontario, marked by the government’s expansion of sales to new outlets, has led to the closure of numerous Beer Store locations. The recent agreement between grocers and the Beer Store allows grocery stores the option to have the Beer Store oversee the deposit return program on their behalf.
While the union president representing Beer Store employees views the agreement positively, acknowledging its potential to sustain demand for return services, challenges remain. The agreement stipulates that the Beer Store must ensure a return point within 10 kilometers of the majority of Ontarians, potentially posing travel challenges for some residents.
Wirsig and others express concerns over access issues in urban areas and the potential impact on recycling rates. The closure of numerous Beer Store locations in Toronto and the Greater Toronto Area has left some communities devoid of return options, complicating consumer participation in the program.
Anticipating that some consumers may resort to discarding containers in recycling bins, activists advocate for using unredeemed deposits to enhance return infrastructure. However, the government’s stance on this proposal remains unclear.
Further closures of Beer Store locations may be imminent, as the company’s agreement allows for discretionary closures post-2025. The potential implications of the deal with grocers on future closures remain uncertain, with the Beer Store refraining from speculating on forthcoming decisions regarding its retail footprint.