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FAQs - Alcohol


"By The Glass" – Manufacturer´s Limited Liquor Sales Licence FAQs (May 2007)

1. What is the "By the Glass" initiative?

The "By the Glass" initiative allows Ontario wineries and breweries to make an application to the AGCO for a Manufacturer´s Limited Liquor Sales Licence to sell and serve their wine and beer to patrons for consumption in single servings at their manufacturing site.

The sale and service of the wine and beer must be primarily aimed at promoting the manufacturer´s product and either providing an enhanced tourist experience or fulfilling an educational purpose.

2. What is the purpose of the "By the Glass" initiative?

"By the Glass" licensing is designed to enhance the Ontario tourism experience and provide wineries and breweries with an added tool that can be used to educate guests about their products in an interactive manner.

3. Who is eligible to receive a Manufacturer´s Limited Liquor Sales Licence?

Only Ontario wineries and breweries which hold a Manufacturer´s Licence (issued pursuant to the Liquor Licence Act) are eligible for a Manufacturer´s Limited Liquor Sales Licence.

Please note that the holder of the Manufacturer´s Limited Liquor Sales Licence must be the same person/entity that holdsthe Manufacturer´s Licence and may not be a separate holding company or an independent operator.

4. Is "By the Glass" licensing available to Ontario manufacturers of spirits?

No. "By the Glass" licensing is designed to enhance the Ontario tourism experience and, specifically, Ontario´s burgeoning wine and craft-brewing tourism industries.

5. What are the criteria for areas to be considered eligible for "By the Glass" licensing?

Areas eligible for licensing under a Manufacturer´s Limited Liquor Sales Licence must be located on or immediately adjacent to a manufacturing site and under the sole control of the manufacturer.

Wine and beer will not be permitted in such areas as public roads, thoroughfares, driveways and parking lots, or in other areas that may raise public safety concerns.

6. What types of areas does this include?

All appropriate internal and external areas throughout the manufacturing site will be considered eligible for "By the Glass" licensing, including touring routes, sitting areas, retail stores, vineyards, and other similar areas.

7. What will be permitted in the areas that are approved for "By the Glass" licensing?

The sale, service, and consumption of single servings of wine and beer manufactured by the licensee will be permitted in these licensed areas.

8. What are the sizes of servings for wine and beer that are permitted to be served to patrons under "By the Glass" licensing?

A Manufacturer´s Limited Liquor Sales Licence allows for the sale and service of wine or beer to patrons in quantities that do not exceed 341ml (12 oz.) for beer and 142 ml (5oz.) for Ontario wine.

9. Can other manufacturers´ products be served under a Manufacturer´s Limited Liquor Sales Licence?

No. A Manufacturer´s Limited Liquor Sales Licence only permits the sale and service of beer or Ontario wine manufactured by the manufacturer who holds the licence.

10. What are the hours of sale and service for wine and beer under a Manufacturer´s Limited Sales Licence?

Under a Manufacturer´s Limited Sales Licence, wine and beer may only be sold between 11:00 a.m. and 9 p.m. on any day and these hours may not be extended.

11. What application process do interested manufacturers have to complete to offer "By the Glass"?

A manufacturer must submit an Application for a Manufacturer´s Limited Sales Licence (#1222) to the Alcohol and Gaming Commission of Ontario (AGCO), along with a site plan of the manufacturing site, written confirmation that a municipal resolution has been passed in support of the licence and the appropriate fee. The proposed licensed areas must be outlined in a clearly defined manner on the site plan.

The application needs to be fully approved by the AGCO before a licensee may permit the sale and service of wine or beer for consumption by patrons at the manufacturing site.

For further details, please see the Manufacturer´s Limited Liquor Sales Licence Application and Guide (form #1222), which is now available by request to the AGCO or on the AGCO website at www.agco.on.ca .

AGCO Customer Service may be contacted at 416-326-8700 or toll free in Ontario at 1-800-522-2876 with any inquiries and, when making an inquiry, please refer to application #1222 under the category ‘Alcohol Licence Application Forms´.

12. Will the Application for a Manufacturer´s Liquor Sales Licence need to be advertised to the public?

No. Given the nature of the restrictions placed on a Manufacturer´s Liquor Sales Licence, "By the Glass" applicants are exempted from the public advertising process.

13. Why is a municipal resolution required to obtain a Manufacturer´s Liquor Sales Licence?

As "By the Glass" applicants are exempt from the public advertising process, a municipal resolution is required to indicate the support of the local community.

14. What should the municipal resolution state?

The AGCO does not offer suggested wording for the municipal resolution because this is a matter for municipal officials to decide. As an example, however, the resolution may be as simple as: "Be it resolved that the Municipality of X supports the application of winery X for a Manufacturer´s Limited Liquor Sales Licence" or "Be it resolved that the Municipality of X supports the application of winery X to sell and serve wine for consumption by patrons at its manufacturing site."

15. What are the required fees for a Manufacturer´s Liquor Sales Licence?

The current fee for a Manufacturer´s Liquor Sales Licence is set at $225 per year, including for initial issuances, renewals and reinstatements. The fee for a transfer of a Manufacturer´s Liquor Sales Licence is also $225. All other applicable fees are the same as a standard liquor sales licence.

16. How often does a Manufacturer´s Liquor Sales Licence need to be renewed?

The renewal period for a Manufacturer´s Liquor Sales Licence is synchronized with the renewal period of the corresponding Manufacturer´s Licence to provide convenience for the licensee and ensure continued eligibility. Wine manufacturers, therefore, are required to renew their Manufacturer´s Limited Liquor Sales Licence every two years and pay a fee of $450 and beer manufacturers are required to renew their Manufacturer´s Limited Liquor Sales Licence annually and pay a fee of $225.

17. On what date will a Manufacturer´s Limited Liquor Sales Licence expire?

A Manufacturer´s Limited Liquor Sales Licence will expire on the same day as the holder´s Manufacturer´s Licence and renewal applications for both the Manufacturer´s Limited Liquor Sales Licence and the corresponding Manufacturer´s Licence must be received on or before that date.

There is no 90-day grace period provided after the expiry date to renew a Manufacturer´s Limited Liquor Sales Licence. If the renewal application is received after the expiry date and/or is not accompanied by the holder´s Manufacturer´s Licence Renewal Application by that date, the Manufacturer´s Limited Liquor Sales Licence will be cancelled and the licensee will be unable to sell and serve wine or beer for consumption until the Manufacturer´s Liquor Sales Licence is reinstated in conjunction with renewal of the Manufacturer´s Licence.

18. Is the initial licence fee prorated based on the timing of the expiry of the holder´s Manufacturer´s Licence?

For the initial Manufacturer´s Limited Liquor Sales Licence application, the fee will be prorated on an annual basis. In other words, if the Manufacturer´s Limited Liquor Sales Licence is valid for 365 days or less before expiry, the fee will be $225 and, if it is valid for 366 days or more, the fee will be $450.

19. Why are the initial application fee and the transfer fee for a Manufacturer´s Limited Liquor Sales Licence lower than those for a standard liquor sales licence?

The lower fees reflect the fact that, while certain licensing processes are still required for initial applications and transfers, the major components of due diligence and licensing work for a Manufacturer´s Limited Liquor Sales Licence will be undertaken in relation to the corresponding Manufacturer´s Licence, which has its own fee attached. The lower fees also recognize the various restrictions placed on a Manufacturer´s Limited Liquor Sales Licence.

Please note, however, that renewals and transfers of a Manufacturer´s Limited Liquor Sales Licence must still be applied for independently of renewals and transfers of the holder´s Manufacturer´s Licence.

20. Can a liquor sales licence endorsement be attached to a Manufacturer´s Limited Liquor Sales Licence?

No. Liquor sales licence endorsements, such as for catering or BYOW, are not available for a Manufacturer´s Limited Liquor Sales Licence because they are not consistent with the intent of "By the Glass" licensing.

21. Can a licensee apply for an extension of hours under a Manufacturer´s Limited Liquor Sales Licence?

No. The hours of 11:00 a.m. to 9 p.m. for "By the Glass" sale and service of wine and beer are set out in regulation and extensions of hours for special occasions are not permitted because they are not consistent with the intent of "By the Glass" licensing.

22. Can a licensee apply for a temporary extension of the licensed areas under a Manufacturer´s Limited Liquor Sales Licence?

No. The areas approved on the site plan of the manufacturing site for "By the Glass" licensing are the only areas where the sale, service and consumption of wine and beer are allowed and temporary extensions of those areas for special occasions are not permitted because they would not be consistent with the intent of "By the Glass" licensing.

23. What is required of a licensee to amend the areas designated for "By the Glass" licensing?

A licensee will be required to submit an updated site plan of the manufacturing site to the AGCO for approval, with the amended "By the Glass" licensed areas outlined in a clearly defined manner. Please note that an Application for Changes or Additions to Existing Licensed Areas will not be required and no fee will be assessed for the change.

The new areas at the manufacturing site designated on the site plan for "By the Glass" licensing must be fully approved by the AGCO before a licensee may permit the sale and service of wine or beer for consumption by patrons in those areas.

24. Is a licensee required to place partitions between licensed and unlicensed areas of the manufacturing site?

No. Licensees are exempted from having to build partitions between licensed and unlicensed areas of the manufacturing site under a Manufacturer´s Limited Liquor Sales Licence.

25. Who is responsible for ensuring that patrons do not transport or consume wine and beer into areas that remain unlicensed?

Although exempt from having to construct partitions, licensees under a Manufacturer´s Limited Liquor Sales Licence are responsible for ensuring that wine and beer is not permitted to be taken by patrons into areas of their manufacturing site that remain unlicensed.

26. How will a patron know if they are permitted to take wine and beer into an area of the manufacturing site that may or may not be licensed?

Informing patrons about licensed and unlicensed areas within an establishment remains the responsibility of licensees. A sign indicating that liquor is not permitted past a certain point, an informed staff, reasonable monitoring and appropriate security will all help to instruct patrons if areas remain unlicensed.

27. Is a licensee required to provide light meals or food to patrons under a Manufacturer´s Limited Liquor Sales Licence?

No. Licensees under a Manufacturer´s Limited Liquor Sales Licence are exempt from this requirement because of the limited intent and nature of ‘By the Glass" licensing.

Although exempt from this requirement, licensees are still encouraged to provide snacks and other food to guests whenever possible and in appropriate circumstances.

28. Are licensees exempt from any of their other responsibilities as a liquor sales licensee under a Manufacturer´s Limited Liquor Sales Licence?

No. Licensees will continue to be held responsible for all of their other liquor licence obligations at their manufacturing site, including those relating to intoxication, narcotics, minors and disorderly conduct. This includes ensuring that guests are not served to intoxication or served once intoxicated.

Please note that all wine and beer sold under a Manufacturer´s Limited Liquor Sales Licence, like with all other liquor sales licences, must first be purchased under the Manufacturer´s Limited Liquor Sales Licence and that receipts of all sales and purchases of the wine and beer must be made available for inspection for one year.

29. Will staff involved with the sale of wine or beer for consumption by patrons at the manufacturing site have to complete responsible service training?

Yes. The holder of a Manufacturer´s Limited Liquor Sales Licence must ensure that all managers, servers of wine or beer and any security staff hold a certificate of a server training course, approved by the board of the AGCO, within 90 days of the commencement of employment.

The Board of the AGCO has approved the Smart Serve® Training Program. This program is available on video or on the Smart Serve® website at www.smartserve.ca/. For more information about the Smart Serve® Training Program, please contact:

Smart Serve® Ontario
5407 Eglinton Avenue West, Unit #105
Toronto, ON M9C 5K6
Telephone: 416-695-8737 or toll-free 1-877-620-6082

Please note that the AGCO also recognizes The Server Intervention Program certification issued prior to May 1995.

30. What if a guest arrives at the manufacturing site and appears to be intoxicated?

Intoxicated persons are not permitted within any licensed area, including those designated under a Manufacturer´s Limited Liquor Sales Licence. An intoxicated guest, therefore, would be required to remain in an unlicensed area of the manufacturing site and under no circumstances served wine or beer.

When designating areas for "By the Glass" licensing, an arrival area can be severed and remain unlicensed to provide a place for an intoxicated guest to remain. The AGCO should be clearly informed if such an arrival area is created.

31. Is a maximum capacity assigned to the area designated for "By the Glass" licensing under a Manufacturer´s Limited Liquor Sales Licence?

No. The area licensed under a Manufacturer´s Limited Liquor Sales Licence is not assigned a maximum capacity because the licensed areas are not defined by a standard method.

Although no maximum capacity is stated on the Manufacturer´s Limited Liquor Sales Licence itself, licensees will continue to be required to ensure compliance with all applicable zoning requirements, municipal by-laws, the Building Code Act, 1992, the Fire Protection and Prevention Act, 1997 and the Health Protection and Promotion Act, including the occupancy loads assigned to all buildings.

Also, depending on individual circumstances, conditions related to the limited licensing of these areas may be proposed by the Registrar of Alcohol and Gaming.

32. Will any formal security, safety, fire, or health approvals be required for "By the Glass" licensing?

No. Although no formal approvals are required for "By the Glass" licensing, licensees will continue to be required to ensure compliance with all applicable zoning requirements, municipal by-laws, the Building Code Act, 1992, the Fire Protection and Prevention Act, 1997 and the Health Protection and Promotion Act.

33. What measures should be taken with regards to potential liablity issues relating to patrons consuming wine and beer and touring the manufacturing site, particularly with machinery being nearby?

While licensees must provide a safe, sanitary and secure environment for their patrons and areas that may raise public safety concerns will not be licensed, exact decisions on how to accommodate patrons are left to licensees. Questions and concerns regarding liability issues should be referred to a lawyer with expertise in the area of civil liability and/or an insurance company.

34. Can samples out of the manufacturer´s stock still be provided to patrons if the on-site retail store is included within the licensed area of the Manufacturer´s Limited Liquor Sales Licence?

Yes. Samples may still be provided to patrons within an on-site retail store if the store is included within the licensed areas designated under the Manufacturer´s Limited Liquor Sales Licence. The samples must be provided in accordance with the Sampling Guidelines for Liquor Manufacturers and, specifically, the section on Product Sampling to Patrons of a Liquor Retail Store.

Any sample provided to a patron may not leave the premises of the on-site retail store and no samples may be provided outside of the retail store. If, however, a glass of wine or beer is sold under a Manufacturer´s Limited Liquor Sales Licence in an on-site retail store, the patron is permitted to carry it into any of the areas designated for "By the Glass" licensing.

35. Can a wine or beer manufacturer host both a fully licensed establishment (Tied House) and "By the Glass" licensing?

Yes. As "By the Glass" licensing was designed to provide Ontario manufacturers of wine or beer with an added promotional tool, a wine or beer manufacturing site may host both a Tied House and a Manufacturer´s Limited Liquor Sales Licence. Please note, however, the liquor from each must remain in the area approved for that licence.

For example, a glass of wine purchased from a Tied House must remain within the licensed premises of the Tied House and a glass of wine purchased under a Manufacturer´s Limited Liquor Sales Licence may not be taken into the Tied House.

36. Does a manufacturer of both wine and beer need to acquire a separate Manufacturer´s Limited Liquor Sales Licence for each if wine and beer are produced at the same manufacturing site?

Yes. A Manufacturer´s Limited Liquor Sales Licence is "tied" to a corresponding Manufacturer´s Licence for wine or beer. A separate Manufacturer´s Limited Liquor Sales Licence would, therefore, be required for both wine and beer and the permissible areas for each product would need to be differentiated within the manufacturing site, particularly for the purposes of tours.