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FAQs - Alcohol


Ferment on Premise Facilities FAQs

1. Can a licensee offer a frequent purchase discount program? (i.e. buy 5 and the 6th is free)

No. Actual pricing is not regulated however the offering of a frequent buyer's discount is considered to be a practice that promotes immoderate consumption and is prohibited by clause (a) of 10(3) of Regulation 58/00.

2. What does "each business must be separately run" mean?

The FOP business must be the primary or main business in the defined space. If other related aspects of the business are being operated from that space they must be incidental or ancillary to the operation of the FOP. An example would be the retailing of related products such as wine chillers, corkscrews, or beer steins. If another business of significance is being operated it must be physically separated from the FOP facility and each business must have separate books and records, and cash registers.

3. What kind of separation is required between two businesses?

The FOP premises must be clearly defined. For liquor sales licensees a 36 inch partition is required however there is no specific size stated in the BOP regulations so common sense would apply. A distinction in floor covering such as different colour tiles or tile versus carpet would not be adequate.

If the second business also holds a liquor licence then a floor to ceiling partition that cannot be moved is required.

4. Must a retail store be physically separated from the FOP facility?

Only if the retail store is the primary business. If the retail store is ancillary to the operation of the FOP facility it does not need to be physically separate.

5. If a licensee operates a consultation business for making wine or beer for sales licensees (brew or wine pub endorsement holders) must the records be kept separate?

Yes. The business of providing services to liquor sales licensees in the operation of brew pubs or wine pubs under an endorsement to their liquor sales licence is a separate business from the operation of the FOP and would require separation from the FOP operation and separate record keeping.

6. How will "trading/exchanging" be monitored?

The FOP operator cannot facilitate trading and exchanging of product in any manner. Compliance with the regulations will be sought through the usual mechanisms such as inspections conducted by AGCO Inspectors or police. These inspections may be in response to complaints received or regularly scheduled and ad hoc inspections.

7. Are there any record keeping requirements that must be met?

Yes. For each customer the licensee, his or her employees or agents must provide an invoice setting out the name, address, telephone number of the licensee, the name, address, telephone number of the person making the beer or wine, whether beer or wine is being made, the quantity being made, the ingredients being provided to the customer, the cost of the ingredients, the services provided, the cost of the services, the date the making of the beer or wine is to begin, the amount of payment received from the customer and a notice to the customer that the beer or wine by the customer must be for the customer's personal use only. The invoice number must be attached to each carboy and the licensee must retain a copy of each invoice for at least one year. In addition, the licensee must retain for at least one year records of the licensee's purchases of ingredients and a copy of each invoice provided to a customer.

Note: This must also be done when a licensee, his/her employees or agents make their own beer or wine on the premises.

8. Does an applicant for a FOP licence need a vendor's permit from the Ministry of Finance for payment of Retail Sales Tax?

Yes. All FOP facilities must be registered with the Ministry of Finance, and all retail sales tax must be paid to date. The AGCO does not have the authority to issue a FOP licence if the applicant is in arrears of Retail Sales Tax.

9. What is a 90-day contract agreement?

A 90-day contract agreement allows licensees to contract out their business to someone who has applied for a new liquor licence at that premises.

10. Can the holder of a FOP licence sell the licence with the business?

No. If there is a change in ownership, a new licence application must be made.

11. If two people go in together to make the product and both people sign the receipt, can both people carry out all the steps? Can one only do part and the other do the rest?

Both must be present for all steps.

12. Can a FOP licensee, his/her employees or agents offer samples to customers?

No.

13. Can a customer sample their own beer or wine?

A customer may sample their own beer or wine after fermentation, carbonation or filtration has occurred. The sample cannot be more than 170 milliliters and must be consumed on the premises. Only the customer who owns the beer or wine can drink the sample.

14. Can a customer who owns a licensed restaurant/bar/café make beer or wine to sell in their bar/restaurant/café?

No. The only liquor that the holder of a liquor sales licence may keep for sale, sell or serve must be purchased from a government store, and it must have been purchased under their licence or made on their premises under the authority of brew or wine pub endorsements to their licence.

15. Outside of their homes, are customers permitted to serve their wine or beer?

FOP products cannot be served under the authority of Special Occasion Permits except for weddings or other religious occasions. The product must be made by a member of the family that is hosting the event, they must have specifically made the product for that occasion, and the product must not be sold.

16. Can a FOP licensee run another business from the FOP facility?

No. FOP licensees must ensure that no business other than the operation of a FOP facility and the sale of items ancillary to such operation is conducted from the premises.

17. What can a FOP licensee advertise?

Without prior approval from the AGCO a licensee can, in an advertisement

  • state that their facility is licensed to operate a FOP facility
  • state the name of the licensed premises and its address
  • provide a list of the goods and services available and their prices
  • advertise the availability of various types of materials, beer wort, wine juices, wine juice concentrates or other juices or juice concentrates.
18. May a FOP licensee advertise the prices of beer or wine?

No, any advertisement must clearly state that the prices advertised are the cost of the ingredients and services of making beer or wine on the licensed premises and do not refer to the finished product.

19. Is the customer required to pay up front for their ingredients?

No, the transfer of ownership must take place prior to the conclusion of the customer's first visit.