On-going
Product Testing & Packaging Evaluation
Once per year, a randomly selected sample
of every active Product at the LCBO is forwarded
to the LCBO Quality Assurance laboratory
for chemical analysis, organoleptic assessment,
and a packaging review.
Payment
Suppliers with an
active LCBO account will automatically be
debited $135 per sample (price subject to
change) analyzed plus applicable taxes. The
certificate of analysis will constitute proof
of payment through this debit process. One–time
Suppliers will be required to submit a cheque
in the amount of $135 (p rice subject to
change) plus applicable taxes per sample
payable to the LCBO at the time of sample
submission.
Additionally, should any chemical, quality, or packaging issues with the Product arise (i.e., consumer complaints) the Product will be reviewed.
Products that are found not to comply with LCBO chemical analysis or organoleptic assessment, packaging/labelling, or Product Identification Standards or requirements, at any time, will be treated by the LCBO in a manner appropriate to the type of defect or non-compliance, at the discretion of the LCBO but subject to the paramount consideration of public safety. This may require one or more of the following actions:
- Warehouse stock will be placed on hold
- Store stock may be withdrawn from sale
- A public recall of the Product may have to be issued
- Corrective action may have to be taken to rectify the deficiency by the Supplier.
If it is determined that the Supplier is responsible for the defect, or non-compliance, the Supplier will be responsible for all costs to remove or dispose of the Product or to rectify a deficiency. These costs may include:
- A rebate to the LCBO to reduce the LCBO retail price of the Product
- Charges to correct packaging or labelling deficiencies
- Destruction of warehouse and /or store stock at Supplier's expense
- Return of warehouse and/ or store stock to the Supplier at the Supplier's expense.
Ongoing
Product Testing & Packaging
Evaluation Table of Contents
Testing of Products Sold by
the LCBO but not Warehoused by the LCBO
Discontinuance of Purchase
Appeals
Testing of Products Sold by the LCBO but not Warehoused by the LCBO
In accordance with LCBO Quality Assurance protocols, every Product sold by the LCBO that is not warehoused by the LCBO, i.e., direct deliveries to LCBO stores, must undergo annual laboratory testing for compliance with LCBO chemical and labeling guidelines. Each Ontario beverage alcohol Supplier must make the necessary arrangements for annual Product testing and may do so in two ways.
Forward representative samples (minimum of three (3) bottles) of each Product to:
LCBO Quality Assurance Department - Dept.
# 965
3rd Floor, Sales & Marketing Division
43
Freeland Street
Toronto, ON M5E 1L5
A testing fee of $135 (p rice subject to change) plus applicable taxes applies to each Product tested.
Independent laboratories may also be used to conduct Product testing. If this option is selected, the laboratory used is required to have a quality management system accredited to the ISO/IEC 17025 standard. In addition, the laboratory will be accredited in the analysis of alcoholic beverages and must conduct testing in compliance with the parameters established by the LCBO's Quality Assurance Department (reference LCBO Guidelines for Chemical Analysis). The LCBO will only accept Certificates of Analysis from laboratories that meet these requirements.
Samples of every Product must be tested annually. Each Supplier is responsible for either providing the LCBO Quality Assurance Department with the appropriate samples or a copy of a Certificate of Analysis for each Product.
Other Testing
Services of the LCBO's Quality Assurance
Department, including chemical analysis,
are also available on a fee-for-service basis
for Products not sold by the LCBO. All manufacturers
are encouraged to utilize these or other
accredited testing facilities to help ensure
the safety, quality and compliance of all
of their Products.
The LCBO, in its discretion, may decide to discontinue buying (or ‘delist' for General List) a Product for failure to meet any terms or conditions set out in the Commitment Letter or Purchase Order, including:
- For failure to achieve the specified Sales Targets (or Sales Quotas) set for the Product
- For inconsistent supply
- If the Supplier's marketing commitments for a Product are not met
- If the Supplier demands an excessive price increase
- If the Supplier does not sell the Product to the LCBO at the Supplier's best price
- If the Supplier fails to comply with applicable Liquor laws
- If the Supplier fails to comply with the Advertising Guidelines of the AGCO
- For failure to comply with the LCBO's Product Packaging/Labelling Standards and Guidelines for Chemical Analysis and CALJ Product Identification Standards
- For failure of the Product, including its packaging, to comply with any applicable law of Canada OR Ontario.
Where a Product is discontinued either by the LCBO or voluntarily by the Supplier, the Supplier must rebate the LCBO twenty-five percent (25%) of the purchase price for all remaining warehouse and retail inventories of the Product and then the LCBO will reduce the retail price accordingly on all future sales of the Product. The Supplier may elect to repurchase warehouse stock only and it will then be returned to the Supplier at the Supplier's expense. The Supplier may also elect to have warehouse stock that it elects to repurchase shipped to another jurisdiction at the Supplier's expense.
Decisions of the LCBO not to purchase a Product or to discontinue/delist a Product may be appealed within thirty (30) days of the date of LCBO letter containing the decision. A written letter of appeal should be addressed to The Appeals Committee, Attention: Sr. V.P. Sales & Marketing, LCBO.
Such letter must set out the extenuating circumstances on which its appeal is based. Please note that the change of an Agent will not be viewed as an extenuating circumstance. A written notice of decision of the appeal will be given setting out reasons for the decision reached. Only one appeal is permitted.