Ontario’s 2025 budget is being hailed as a landmark moment by small businesses in the beer, wine, and cannabis industries. With a focus on supporting local producers, the province is making changes that many say are decades overdue.
Starting August 1, Ontario will cut its markup rates on locally produced beer, cider, and ready-to-drink cocktails by as much as 50%. For the province’s 350 craft breweries, it’s more than a financial break—it’s a potential lifeline.
“This is a game changer for the whole industry in Ontario,” said Troy Burch of Great Lakes Brewery. “It means better margins and a fairer playing field against the big brands. We’ve been waiting for this since prohibition.”
Industry insiders point out that these lower markup rates will allow businesses to reinvest more into their operations—whether it’s purchasing better ingredients, hiring locally, or expanding manufacturing. For a sector that has struggled with rising costs and growing competition, the budget represents a rare and welcome boost.
The craft alcohol industry isn't the only sector benefiting. Ontario grape growers are also getting a shot in the arm. The government is earmarking $175 million over five years to support the local wine industry, with a goal of doubling the amount of Ontario-grown fruit used in blended wines. This initiative supports both agriculture and local winemakers, strengthening the province's broader food and beverage economy.
Meanwhile, cannabis retailers are celebrating long-awaited reforms. One significant change is the removal of the requirement to block store windows—a regulation that has frustrated store owners since legalization. By allowing natural light to enter shops and increasing visibility from the street, the government hopes to boost foot traffic and create a more welcoming environment for customers.
In addition, the province is launching an “Ontario Grown” cannabis badge. This label will make it easier for consumers to identify and support products cultivated within the province, echoing trends in local food and craft beer that emphasize regional pride and transparency.
As for consumers wondering if this all means cheaper prices? Not necessarily. While dramatic price drops may not be on the horizon, Troy Burch notes that these changes could at least help prices remain stable after years of steady increases.
With declining LCBO revenues, competition from convenience store sales, and changing consumer habits, Ontario’s 2025 budget is aiming to give small producers a renewed sense of purpose—and a stronger foundation for growth.