LCBO sees surge in demand for local and low-alcohol drinks

In a year marked by shifting consumer habits and limited access to U.S. products, Ontarians turned their attention to locally made beverages, according to the LCBO’s annual report.

From ready-to-drink cocktails to de-alcoholized wine, Ontarians showed a strong preference for new formats and local producers throughout the past year.

LCBO took its annual look back at consumer preferences when it comes to beverage alcohol.

This past year Ontarians embraced the opportunity to discover something new amidst restrictions on U.S.-produced products, new points of sale, and innovative new product releases.

“This year we saw trends shift in response to industry changes and a growing desire to support local, with more than 20 per cent growth in demand for Ontario products”, said Abhay Garg, Vice President, Merchandising. “Customers were motivated to try something new – often from our own backyard – which is great for local producers.”

Beer, Cider and Ready-to-Drink

Both beer (+22%) and ready-to-drink (RTD) coolers (+21%) experienced a significant boost throughout the year – partly driven by their availability at more points of sale outside of the LCBO. Meanwhile, at the LCBO, the expansion of large format beer (i.e. 12, 24 and 30 packs) across the province, drove 42% growth over the previous year, with the 30-pack being the most popular large-pack format.

Ontario’s craft beer and cider customers flocked to tried-and-true favourites, flavour innovation, and seasonal releases from local producers, while interest in classic Belgian, German and Czech styles fuelled interest in imported beer. Non-alcoholic beer and cider (+14%) continued to grow in popularity, and customers can look forward to large national brands and local craft producers launching new styles in 2026.

Seltzer-style products, which offer a low-calorie alternative, remained the most popular type of RTD. However, RTD cocktails continued to be the fastest-growing (+31%), doubling in growth since last year. Exciting new releases from local Ontario producers were popular, and this year LCBO more than doubled the number of products available from small Ontario RTD producers.

Wine

When it comes to wine, customers continued to seek out fresher styles, including lighter reds, sparklers, and light wines. With more customers choosing to consume mindfully, de-alcoholized wines continued to gain popularity (+126%). In lieu of U.S.-produced wines, Ontario wines benefited from the strong customer sentiment to support local, with VQA sales increasing by +56%, led by Ontario red VQA (+66%) and Ontario white VQA (+54%). There was also a notable increase in demand for wines from Canada (+19%), Australia (+17%), Italy (+10%) and France (+18%) — particularly red wines.

Spirits

Within spirits, customers increasingly chose Canadian and Ontario alternatives. Canadian whisky led overall growth by value, but this trend extended to other spirit categories, including vodka, rum, and liqueurs, where Canadian and Ontario options gained traction. While smaller categories, Asian whiskies continued to experience strong demand (+23%) and Irish whiskey (+2%) enjoyed steady growth. Meanwhile, consumers continued to favour smaller, convenient sizes, driving demand for bottles below 750ml.

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