REPORT: Premier's plan for beer in corner stores could cost hundreds of millions
The Ford government's plan for beer in corner stores may be convenient but a new report suggests it could cost tax payers even more than first thought.
A report in March suggested the province could be on the hook for $100 million in penalties if it breaks its contract with the Beer Store.
Now, industry sources speaking to CBC News say the cost could be far higher; into the hundreds of millions.
The contract limits the number of new stores that can sell beer to 450. Ontario has 11,000 convenience stores.
The Beer Store and breweries sell about $2.3 billion worth of product each year so cutting into even a small portion could add up.
Under the contract, the government could be on the hook for lost revenue and the cost of distributing beer to convenience stores.