How the LCBO makes money for the Ontario government [Video]

The LCBO brings in about $2.5 billion for the Ontario government each year. Exactly how it earns that money is not always transparent to the public. 

LCBO retail outlets — the 680 stores currently shut by strike — account for nearly 80 per cent of the Crown corporation’s gross revenue, according to its most recent annual report. 

The rest comes primarily from LCBO’s role as a distributor to bars, restaurants and supermarkets. 

What’s unclear is how Premier Doug Ford’s government’s looming plan to allow all 8,000-plus convenience stores and grocery stores in the province to sell beer, wine, and ready-to-drink cocktails will affect the LCBO’s bottom line.

Ford insists that the reforms will not hurt provincial coffers. However, industry sources and an LCBO internal document obtained by CBC News suggest the changes will take hundreds of millions of dollars away from the public purse each year. 

What follows is a breakdown of how the LCBO currently turns a profit, and how things are expected to …