Feb 16 • 16:00 UTC 🇨🇦 Canada Global News

Ford government would use LCBO ‘clout’ in future fights with companies

Ontario's finance minister indicates the government may leverage the LCBO's purchasing power in disputes with businesses, following a recent resolution with Diageo over Crown Royal.

In a recent statement, Ontario’s finance minister acknowledged the provincial government's intention to utilize the purchasing influence of the Liquor Control Board of Ontario (LCBO) in future negotiations with companies. This comes on the heels of a contentious dispute with Diageo, the manufacturer of Crown Royal, which resulted in a $23 million agreement aimed at bolstering investment in Ontario after premier Doug Ford initially threatened to remove the product from LCBO shelves. The agreement reportedly includes a range of investments, including significant commitments in local communities and from eastern Ontario manufacturers.

The situation highlights the Ontario government’s strategy of using its position as a major purchaser to negotiate favorable conditions for the province, especially in terms of attracting investments from large corporations. By suggesting they might resort to similar tactics in future disputes, provincial officials are signalling a readiness to leverage the strength of the LCBO to ensure business commitments lead to tangible benefits for local economies. This approach has faced criticism, with some alleging that it amounts to 'weaponizing' the LCBO for political leverage.

Moreover, the implications of such a strategy extend beyond individual agreements, as it raises questions about the role of government in business relations and the potential impact on product availability in Ontario. This situation not only showcases the dynamics between government and corporations but also reflects broader economic concerns in the province as it seeks to stimulate growth through strategic partnerships with major brands while managing public opinion and corporate relationships.

📡 Similar Coverage