The legal shape of it
An Ontario agent holds a Manufacturer's Representative licence from the AGCO. It permits canvassing for and taking orders on a manufacturer's behalf and running product samplings. It does not permit selling alcohol to the public or to the LCBO, and it does not permit importing directly. (AGCO)
That matters commercially, not just legally. The LCBO buys and owns the goods. Your agent is not a distributor holding your stock at a margin. What you are buying is access, judgement and sustained effort in the field.
Where the value actually sits
Getting a submission made is the visible part and the smaller part. The work that decides whether a brand survives is what happens after: physically getting product onto shelves in the stores that were allocated it, store level calls, staff education, tastings, on-trade placements, and watching rate of sale closely enough to reorder before a stockout rather than after one.
An agency that is all paperwork and no field work is the wrong shape for this market. Ask a prospective agent what they did last week. If none of the answer involves being in stores, you have your answer.
Questions worth asking anyone you are considering
- Which of your brands are on shelf right now, and in how many stores?
- Who physically walks the stores, and how often?
- What do you do when a product is not moving?
- Have you had a listing delisted, and what happened?
- What is your view on my price, and what would you change?
The last one is the most revealing. An agent who agrees with everything you have already decided has either not looked properly or is not going to tell you the truth later either.
Where we stand
Anu Spirits Limited is an LCBO licensed sales agent in Toronto, representing 21 brands from six countries with nine products live on LCBO shelves. Our director worked more than five years on the LCBO buying floor before starting the agency.
We are not the right agent for everything, and we would rather say so in the first conversation than the fourth.
Common questions
What licence does an LCBO agent need?
A Manufacturer's Representative licence from the Alcohol and Gaming Commission of Ontario, which permits canvassing for and taking orders and running samplings on a manufacturer's behalf.
Can an agent sell or import my product directly?
No. The AGCO is explicit that the licence does not allow selling to the public or to the LCBO, and does not allow importing liquor directly. Import runs through the LCBO.
How do agents charge?
Commission on sales, a fee for submission and launch work, a retainer, or a combination. What matters more than the headline rate is the written scope: store visits, tastings, reporting, and who holds the buyer relationship.