The retail price for all Products purchased as described in this manual will be calculated by the LCBO based upon the LCBO wholesale purchase price (quoted by the Supplier, in writing, at the time of submission) and standardized pricing formulas. This wholesale purchase price must be the same quotation across all channels in the province.
This quotation will remain in effect for twelve (12) months following the issue date of the LCBO "New Product Announcement" made to stores communicating that the new Product has been delivered and is available, with the exception of beer purchased for sale at both the LCBO and The Beer Store (for which more frequent price changes may be made).
However, the LCBO may permit a price increase during this 12 month period if it concludes there are unusual circumstances. After this initial one-year period, the Supplier may apply to the LCBO for price increases according to a published schedule.
Suppliers may reduce the LCBO purchase price with the approval of the Business Unit Director at any time provided that such reduction does not result in the LCBO retail price of the Product falling below the floor price assigned to the Product type. The floor price is the lowest price at which the Product may be sold. Floor price lists are available at beverage alcohol Trade Associations and may be obtained from the LCBO Pricing Administration Department .
Product Pricing Table of Contents
Gift Products/Packaging
Supplier's Best Price
The LCBO will mark up the beverage alcohol component only of specialty /gift items based on the landed cost incurred by the LCBO, (FOB, applicable taxes, freight, and insurance). The quoted price of the beverage alcohol component of such items must be the same as the quoted price for the identical Product if already purchased by the LCBO as a non-specialty/gift item. The packaging portion of specialty/gift items, such as glasses, decanters, wooden boxes, etc. will not be marked up. Suppliers are encouraged to view gift items as incremental marketing opportunities and quote the packaging/specialty component with this in mind.
It is a term of the LCBO Purchase Order that each Supplier not sell any Product to the LCBO at a price (exclusive of taxes, duties, and freight) which is higher than the price at which the Product is being sold by the Supplier to any other government Liquor board or government Liquor purchasing body or like entity in Canada.
In addition, the Supplier may not sell any Product(s) to the LCBO or like entity upon terms and conditions respecting sale or delivery which are less advantageous than those offered by the Supplier to another government Liquor board or government Liquor purchasing body in Canada . The Supplier may not in any other way discriminate against the LCBO with respect to the sale of the Product(s) or any portion thereof. Should the Supplier breach any of these pricing provisions, it will be required to pay to the LCBO on demand, an amount equal to the difference between any amount paid by the LCBO to acquire the Product(s) which is in excess of the amount paid by any other government Liquor board or government Liquor purchasing body in Canada to acquire such Product(s). If such payment is not made when demanded by the LCBO, then the LCBO may choose to discontinue purchasing the Product(s) or to withhold payment of the amount owing from any other amount it may owe the Supplier, or both.