Conditions of authorization
 7. (0.1) This section sets out the conditions that apply to authorizations for the sale of beer or beer and cider issued or transferred under section 6 or 6.1. O. Reg. 99/16, s. 5 (1). (1) The following are the conditions that apply to authorizations referred to in subsection (0.1) in respect of the acquisition of beer or cider for sale in a retail store: 1. The store operator must be a party to a supply agreement with the Board under section 8 and must comply with the agreement. 2. The store operator must not acquire beer or cider for resale in any manner other than from the Board in accordance with the supply agreement. 3. The store operator and its agents and employees must not directly or indirectly request, demand or receive any financial or non-monetary benefit in Ontario or in any other jurisdiction from a beer or cider manufacturer or its representative or employee. 4. If the store operator charges a fee to beer or cider manufacturers for providing distribution and warehousing services, the fee must be calculated in the same manner for all manufacturers and must be made publicly available. 5. The store operator must not enter into an agreement with a beer or cider manufacturer if the agreement restricts the manufacturer’s ability to sell its beer or cider in other stores. O. Reg. 99/16, s. 1, 5 (2). (2) The following conditions apply to authorizations referred to in subsection (0.1) in respect of the sale and advertising of beer and cider: 1. The store operator must ensure that the store begins to sell beer to the public within six months after the authorization is issued and continues to sell beer thereafter. 2. The store operator must offer to sell a variety of brands of beer and, if cider is offered for sale, a variety of brands of cider from manufacturers with a variety of annual production amounts. 3. The store operator must not sell or offer to sell beer or cider in containers having a volume of more than 750 millilitres. 4. The store operator must not sell or offer to sell beer that is a malt-based cooler. 5. The store operator must not sell or offer to sell beer if, i. the beer contains alcohol that was obtained other than by the fermentation of an infusion or decoction of barley, malt and hops or of any similar products, and ii. the alcohol described in subparagraph i increases the total alcohol content of the beer by more than 0.5 of 1 per cent by volume. 6. The store operator must not sell or offer to sell beer or cider if the total alcohol content of the beer or cider exceeds 7.1 per cent by volume. 7. The store operator must not sell or offer to sell beer or cider in packages with more than six containers and must not offer a discount or a rebate in respect of purchases of more than six containers. 8. The store operator must not sell or offer to sell a brand of beer or cider if the store operator or any of its affiliates has a direct or indirect financial interest in the brand or a trademark under which the beer or cider is marketed. 9. The store operator must ensure that beer is displayed in a single contiguous product display area, or if the store operator sells beer and cider, that both beer and cider are displayed in a single contiguous product display area. 10. The store operator must ensure that at least 20 per cent of the containers of beer on display to consumers is beer produced by small brewers and that at least 20 per cent of the containers of cider on display to consumers is cider produced by small cideries. 11. The store operator and its agents and employees must not directly or indirectly request, demand or receive any financial or non-monetary benefit in Ontario or in any other jurisdiction from a beer or cider manufacturer or its representative or employee for the provision of shelf space or product listing for the manufacturer’s beer or cider or for any merchandising, marketing or promotional opportunities, and the store operator must not enter into an agreement with a beer or cider manufacturer if the agreement guarantees the provision of shelf space or product listing for the manufacturer’s beer or cider or guarantees any merchandising, marketing or promotional opportunities. 12. The store operator must ensure that any person who sells or is involved in the sampling of beer or cider has successfully completed a server training course. 13. The store operator must not, i. accept as full or part payment for beer or cider any benefits issued pursuant to a loyalty or rewards marketing program, including coupons, tickets, points or rewards, ii. exchange, convert or redeem any benefits issued pursuant to a loyalty or rewards marketing program, including coupons, tickets, points or rewards, for cash that is applied to payment for beer or cider, or iii. offer free or discounted merchandise contingent on the purchase of beer or cider. 14. Except as may be required on sales receipts and invoices for the purposes of the Excise Tax Act (Canada), the store operator shall display and advertise prices for beer and cider that include all applicable taxes and container deposits, including container deposits payable under the terms of a supply agreement between the store operator and the Board under section 8. 15. All aspects of the sale of beer and cider, including ordering and payment, must be conducted in person at the store. 16. The store operator must ensure that, before beer or cider is sold to a person apparently under the age of 19 years, the person’s identification is inspected in accordance with subsection (7). O. Reg. 99/16, s. 1, 5 (3-8). (3) The following conditions apply to authorizations referred to in subsection (0.1) in respect of the operation of the retail store to which the authorization applies: 1. The store operator must operate the store in compliance with all applicable federal, provincial and municipal law. 2. The store operator must ensure that the store maintains compliance with the criteria set out in paragraphs 1 to 3 of subsection 6 (2). 3. The store operator must provide a secure area for the storage of beer and cider that is not on display. 4. The store operator must ensure that any employee who handles beer or cider at the store is at least 18 years of age. 5. The store operator must ensure that beer and cider are not available to customers outside of the hours of operation authorized by the Board for the sale of beer and cider. 6. The store operator must post the authorization in a conspicuous place in the store to which the authorization applies. 7. If the store operator leases or licenses space for the operation of a winery retail store, the operator must not terminate the lease or licence for any reason other than a default by the winery retail store operator under the lease or licence. O. Reg. 99/16, s. 1, 5 (9-11). (4) For the purposes of paragraph 10 of subsection (2), a beer manufacturer is a small brewer for a sales year if, (a) in the preceding production year, the manufacturer’s worldwide production did not exceed 400,000 hectolitres of beer or, if the manufacturer has been manufacturing beer for less than one year, its worldwide production is not expected to exceed 400,000 hectolitres of beer in the year; and (b) every affiliate that the manufacturer had that manufactured beer in the preceding production year was a small brewer. (5) The following shall be included in determining the amount of a beer manufacturer’s worldwide production of beer for a particular production year for the purposes of subsection (4): 1. All beer manufactured during the year by the beer manufacturer, including beer that is manufactured under contract for another beer manufacturer. 2. All beer manufactured during the year by an affiliate of the manufacturer, including beer manufactured by the affiliate under contract for another beer manufacturer. 3. All beer manufactured during the year by another beer manufacturer under contract for the manufacturer or for an affiliate of the manufacturer. (5.1) For the purposes of paragraph 10 of subsection (2), a cider manufacturer is a small cidery for a sales year if, (a) in the preceding production year, the manufacturer’s worldwide production did not exceed 25,000 hectolitres of cider or, if the manufacturer has been manufacturing cider for less than one year, its worldwide production is not expected to exceed 25,000 hectolitres of cider in the year; and (b) every affiliate that the manufacturer had that manufactured cider in the preceding production year was a small cidery. O. Reg. 99/16, s. 5 (12). (5.2) The following shall be included in determining the amount of a cider manufacturer’s worldwide production of cider for a particular production year for the purposes of subsection (5.1): 1. All cider manufactured during the year by the cider manufacturer, including cider that is manufactured under contract for another cider manufacturer. 2. All cider manufactured during the year by an affiliate of the manufacturer, including cider manufactured by the affiliate under contract for another cider manufacturer. 3. All cider manufactured during the year by another cider manufacturer under contract for the manufacturer or for an affiliate of the manufacturer. O. Reg. 99/16, s. 5 (12). (6) A contract referred to in subsection (5) or (5.2) does not include a contract, agreement or arrangement that provides only for the final bottling or other packaging, including any incidental processes such as final filtration and final carbonation or the addition of any substance to the beer that, if added, must be added at the time of final filtration. O. Reg. 99/16, s. 5 (13). (7) For the purposes of paragraph 16 of subsection (2), (a) the person’s item of identification must include a photograph of the person, must state his or her date of birth and must reasonably appear to have been issued by a government; and (b) without limiting the generality of clause (a), the item of identification may be any of the types listed in subsection 41 (5) of Regulation 719 of the Revised Regulations of Ontario, 1990 (Licences to Sell Liquor) made under the Liquor Licence Act.