Urgent: Ontario Grocers Strike Deal to Avoid Collecting Empties

UPDATE: An urgent agreement has been reached between Ontario grocers and the Beer Store, allowing retailers to avoid collecting empty alcohol containers at their locations. This breakthrough, confirmed by The Canadian Press, comes just days before a critical deadline on January 1, 2024, when grocers were set to refuse accepting empties, posing a threat to the Ontario Deposit Return Program.

The new deal ensures that consumers can continue to return empty bottles and cans for their deposits at Beer Store locations, while grocers will finance the initiative. Brewers are now tasked with guaranteeing a recycling point is available within 10 kilometres for most Ontarians, a significant commitment that could reshape alcohol container recycling in the province.

Roy Benin, president and CEO of the Beer Store, hailed the agreement as “positive news for consumers and the environment,” emphasizing their strong track record in deposit return systems. This voluntary service arrangement aims to keep recycling accessible and efficient across Ontario.

This agreement comes after months of intense negotiations, facilitated by government officials, to address the concerns of grocers who previously warned that they would stop selling alcohol unless the recycling program was improved. Many grocers cited sanitation issues and space constraints as barriers to compliance.

Finance Minister Peter Bethlenfalvy welcomed the deal, calling it a win for both businesses and consumers. “This is another step forward in modernizing Ontario’s alcohol marketplace and delivering more choice and convenience to the people of Ontario,” stated spokesperson Colin Blachar.

Under the initial agreement, grocery stores more than five kilometres away from a Beer Store were required to accept empty returns, with broader obligations commencing on January 1. With many grocers threatening to surrender their alcohol sales licenses if the situation wasn’t rectified, this new deal has relieved concerns about mass closures of Beer Store locations, which have been allowed to shut down a significant number of their outlets.

The potential impact of this agreement is profound. If finalized, it could stabilize the Beer Store’s operations and reassure consumers that they can still return empties without disruption. However, it remains uncertain how many locations will remain open or whether previously closed stores will reopen to meet the new recycling requirements.

Grocers are relieved by the resolution, as highlighted by Kim Furlong, president and CEO of the Retail Council of Canada. “After months of negotiations, grocers and The Beer Store have reached a deal that keeps alcohol container recycling simple and dependable,” she stated.

While the total cost implications for grocers have yet to be disclosed, there is speculation that some of these expenses might be passed on to consumers. Concerns linger about independent grocers who may have to invest in new systems for collecting and storing empties, which could affect their operations. Gary Sands, senior vice-president of public policy and advocacy with the Canadian Federation of Independent Grocers, noted that many independents had been hesitant to apply for licenses due to previous recycling obligations.

The successful resolution of this agreement not only marks a significant win for Ontario consumers but also opens the door for more grocery stores to offer alcohol sales, thereby increasing choice and convenience in the marketplace.

As the situation continues to develop, consumers and businesses alike are encouraged to stay informed about any changes in the alcohol recycling landscape in Ontario. This agreement is a critical step in ensuring a sustainable and effective deposit return system moving forward.