Suppliers and Agents Table of Contents
Supplier
of Record
Role
of Supplier's Agent in Dealing with the
LCBO
Licensing
Requirements for Agents of Manufacturers
Advertising
and Promotion Requirements
Communication of Information
The Supplier must have the legal right to sell the Product for which it is applying to sell to the LCBO.
Once a Product is purchased by the LCBO, the applicant Supplier will become the "Supplier of Record" for the Product. The name of the Supplier of Record will not be amended or deleted without the written consent of the Supplier, unless the LCBO stops purchasing the Product as provided for in this document.
Please note that when the LCBO approves a new Supplier for a Product that it has been purchasing, due to the sale or transfer of the previous Supplier's business or otherwise, the newly approved Supplier assumes responsibility for payment to the LCBO of all amounts then (and subsequently) due to the LCBO for such Product (including, for example, those costs relating to defective or discontinued Product). This requirement applies even though such costs may relate to the period of time when the Product was furnished to the LCBO by the previous Supplier.
Role of Supplier's Agent in Dealing with the LCBO
Often a Supplier may wish to use an Agent in Ontario to deal with the LCBO for purposes of making an application to sell Product to the LCBO and for promotions and marketing. In this regard, the Supplier must directly appoint one Agent in writing by signing a letter on Supplier letterhead. Please refer to the Sample Supplier Agent Appointment letter as a template.
Any Sub-Agents who are appointed by an Agent and who are not direct appointees of a Supplier will not be recognized by the LCBO as Agents of the principal Supplier for the purpose of conducting business with the LCBO.
The Supplier may appoint one Agent only to represent any one Product for purposes of conducting business with the LCBO. (This Agent will be referred to as the "Agent of Record" for the Product). In representing one Product, only the Agent of Record may represent that Product in all its package sizes, forms (i.e. bottle, can, etc.) and the entire brand line for the Product(s) across all LCBO sales channels. Where more than one Agent claims the right to represent a Product, the LCBO will require the Supplier to clearly authorize one Agent only in writing for this purpose.
If the Agent of Record at any time represents to the LCBO that it has full power to bind a Supplier in setting price quotations or terms of payment, the LCBO will agree to deal with the Agent on such basis only upon receipt of an additional express written authorization from the Supplier with respect to these matters.
The LCBO will continue to deal with the "Agent of Record" exclusively on the basis authorized by the Supplier in writing until such time as the LCBO receives from the Supplier express written instructions to the contrary.
Agents must comply with all applicable Liquor laws and the terms and conditions of any permit, authorization or licence issued by the LCBO and/or AGCO. Agents must also comply with the terms and conditions of all programs administered by the LCBO in which the Agent participates. Failure to do so will entitle the LCBO to discontinue dealing with the Agent. The Supplier will be notified in such case.
Licensing Requirements for Agents of Manufacturers
Section 11 of the Liquor Licence Act requires Agents to be licensed by the Alcohol and Gaming Commission of Ontario (AGCO) for the purposes of soliciting orders of Liquor in Ontario on behalf of a manufacturer of Liquor. Such licensed Agents who are not necessarily the Agent of Record may only canvass for, receive, take or solicit an order for the sale of Liquor on behalf of a manufacturer but cannot sell Liquor. Please note that a "manufacturer" for these purposes means a person who produces Liquor for sale.
Applications for such a licence should be submitted to AGCO. Please see the Contacts section on this website for the (see Other Contacts) for more information.
Advertising and Promotion Requirements
The AGCO sets requirements for Liquor advertising, promotion, sampling and giving of liquor and sets prohibitions on inducements. The law regarding these matters is contained in the Liquor Licence Act and regulations and all Suppliers and Agents must comply with these and all other applicable laws. The AGCO publishes Advertising Guidelines that may be obtained from its offices (see Contacts Appendix).
When advertising and/or promoting the sale of a Product, the Supplier/ Agent must comply with the provisions outlined in these Advertising guidelines. Failure to do so may result in the LCBO discontinuing its purchase of a Product(s).
Notice of significant change to the policies and procedures contained in this section of the website will be sent to all Suppliers who currently conduct business with the LCBO. Notices of this change will be sent to the address shown on the application to sell Product to the LCBO.
The LCBO also provides information on many issues to Trade Associations in Ontario . Suppliers / Agents may wish to contact these beverage alcohol Trade Associations on a regular basis for information (please see the Contacts section for Trade Association website addresses).