History
The LCBO was created in 1927 with the end of prohibition, which had been introduced in the province in 1916. The Liquor Control Act, 1927 authorized the LCBO to "control the sale, transportation and delivery" of alcoholic beverages in Ontario.[18] Brewers Retail was created to sell beer in a controlled manner while wines and spirits (as well as beer) were sold in LCBO outlets. Wineries and breweries were also allowed to sell from their own stores, which were limited in number.
In the 1924 Ontario prohibition plebiscite, voters chose, narrowly, by a margin of 51.5% to 48.5%, to retain the Ontario Temperance Act as opposed to the government-controlled sales of beverage alcohol.[19] The Conservative government of George Howard Ferguson contested the 1926 provincial election on a platform of easing the temperance law. Upon reelection, it introduced the Liquor Control Act as a compromise between the complete prohibition demanded by the temperance movement and the unregulated sale of alcohol. Premier Ferguson stated that the Liquor Control Act was "... to allow people to exercise a God-given freedom under reasonable restrictions". Ferguson was further quoted as saying the purpose of the LCBO was to "promote temperance sobriety, personal liberty and, above all, to restore respect for the law".[20] To achieve these goals LCBO was mandated by Ferguson's government to employ an oversight mechanism in order to know "exactly who is buying and how much, and what disposition is being made of it".[21]
The first chief commissioner of the LCBO was David Blyth Hanna and the first 18 stores were opened on 1 June 1927, all designed with a clear glass store front to "make the process appear apparent and with a complete absence of mystery", according to an LCBO document. Previously, only wine sales were legal but bootlegged liquor and beer were illegally sold. The business model was a process of "disinterested management"; the product was available but purchases were discouraged and moderation remained key. By the end of 1927, the province had 86 stores and three mail-order facilities.[22][23]
From 1927–1962 the LCBO required people who wanted to purchase liquor to first obtain a permit (Individual Liquor Permit). The permit was valid for a year. They had to present these permits at the point of purchase, and the clerk at the liquor store would enter information about what, precisely, the individual had purchased.[24]
Residents applied for and received individually-numbered (5 digits) liquor permits. A temporary (or duplicate) permit was a single sheet form with 6 digit number with effective and expiry dates. This was issued until the yearly permit form was received. It was also provided to non-resident visitors.
Between 1927 and 1957, these permits came in the form of passport sized books that consisted of two separate sections, the first which included the permit holder's personal information (place of residence, marital status, occupation/employer, notes change of address) and a second section which kept a record of the individual's purchase history (date, quantity, value, store number and initials).[25] In 1957, Permit books were replaced with permit cards. These cards held the permit holder's name and their permit number and also were needed in order to purchase liquor at the LCBO.[26] Individuals wanting to make a purchase at an LCBO store needed to fill in a purchase order form that included their name, address and permit number as well as the kind and volume of liquor that they wished to purchase.[27] The purchase order form would be handed to an LCBO employee along with the individual's liquor permit and the employee would "examine [the] permit and see to what extent the purchaser has been buying liquor. If a purchaser had exceeded a reasonable quantity per week, the permit number and address would be noted and referred to vendor."[28] Under the Liquor Control Act, the LCBO was to promote temperance through facilitating education and moderation.[29] This meant a store employee could deny a sale to a customer if his intended purchases may be considered too large for one person to reasonably consume.
Purchase order forms were also used by the LCBO as a means of tracking irregularities in liquor purchases and sales and had to be stamped by the employee who had approved the sale and had filled the order. After the liquor permits books were phased out in 1957, purchase order forms were used as a means of establishing individuals' purchase histories in cases of legal investigations and the LCBO's own control processes.[31] Purchase order forms remained in use into the 1970s when the LCBO changed to a self-serve format.
To control what it considered to be excessive purchases or other abuses of the permit privilege, the LCBO employed a list called the interdiction list. Although interdiction was initially a formalized legal process imposed by a judge upon those found in open court to be "drunkards", the board was charged with maintaining the list between 1927 and 1975 and employed its own standards in adding individuals to this list without any involvement of the justice system.[32][33] The list was circulated to all liquor stores and drinking establishments, and was sent to local and provincial police forces to whom it was explained that it was a crime for listed individuals to possess or be sold any liquor. Between 1927 and 1975, the LCBO conducted its own investigations into over consumption, employing a staff of investigators that visited individuals' homes, work, banks, neighbors and even churches to determine if an individual should be restricted from purchasing liquor.[34] From 1927–1935, the LCBO's investigations resulted in the cancellation of over 33,138 liquor permits and the names of these individuals were added to the circulated interdiction list.[35] In 1929, the LCBO's use of the interdiction list was expanded to include those on social assistance as well as others who the board felt should be prohibited from purchasing liquor permits entirely. Between 1929 and 1951, when the LCBO ceased publishing interdiction data in its annual reports, 125,218 individuals had been added to the interdiction list in this way.[36]
In 1934, the mandate of the LCBO was expanded to include the oversight of by-the-glass sale of alcohol in standard hotels and other drinking establishments. As part of the LCBO's regulations, licensed establishments were required to adhere to a wide variety of regulations including a limitation on singing, the number of patrons allowed to sit together and most importantly the segregation of female from unmarried male drinkers (women were only allowed to drink in the presence of a "bona fide escort" in a segregated "Ladies and Escorts" room).[37] The task of overseeing the sale of alcohol in drinking establishments was later passed in 1944 to a short-lived government licensing agency and later to the Liquor Licensing Board of Ontario (LLBO) in 1947.
The first self-service store was introduced in 1969.[18] In the 1970s, the stores became more inviting with decorative displays of alcohol, and in the 2000s, were renovated and enlarged to hold more product. Most current stores have vintages sections with rotating selections of wines and spirits having low production volumes.[38]
In the 1990s, the LCBO rebranded stores by removing the Ontario coat of arms and wording "Liquor Store" with the more stylized LCBO logo.
George Soleas was appointed president and CEO on June 9, 2016.[39]
As of July 11, 2016, LCBO accepts tap-to-pay technology in each of their 654 stores in the province, allowing contactless payment for all purchases of liquor.[40]
On July 5, 2024, employees went on strike for the first time in the LCBO's history.[41] The strike ended on July 22, 2024.[42]
In February 2025, the LCBO was ordered by Ontario premier Doug Ford to remove all sales of American alcohol in response to the Second Trump tariffs.[43]
Sale of cannabis
After the federal government announced that recreational use of cannabis would be legalized in 2017 or early 2018,[44] then Premier Kathleen Wynne commented that the LCBO stores might be the ideal distribution network for stocking, controlling and selling such products.[45] The Ontario Public Service Employees Union, which represents LCBO staff, also lobbied for the LCBO to have a monopoly on cannabis sales.
In response, the federal Task Force on Marijuana Legalization and Regulation recommended against selling cannabis in conjunction with alcohol.[46][47] In September 2017, the Government of Ontario announced that the LCBO alone would sell recreational marijuana to the public in the province, except in the 651 stores that sell alcoholic beverages.[8][48]
