Advocacy Updates

Upon reviewing the 2026-2027 budget, the most tangible impact on convenience stores does not appear to be the announcement of a new explicit increase in the tobacco tax, but rather the continued tightening of the business environment surrounding heavily taxed products, particularly through the ongoing fight against smuggling.

The government reiterates that the illicit tobacco trade continues to generate significant tax losses—estimated at $100 million in 2022—and that tobacco, alcohol, and cannabis products remain priority targets for enforcement actions.

The budget also indicates that in 2025-2026, ACCES tabac received $20.2 million in funding, but does not specify, in the documents filed, the specific funding allocated to it in 2026-2027. 

The SAQ recently issued a statement clarifying its position: 

The SAQ remains responsible for the distribution of ready-to-drink beverages, as is already the case for wines bottled in Quebec, within the framework of its role as a wholesaler for food retailers. 

This is therefore not a market liberalization comparable to what is seen elsewhere. The SAQ will continue to play both its role as retailer and wholesaler, within a single, public model. 

A meeting between CICC and SAQ officials is scheduled in the coming days to clarify the implications for our industry.

The Quebec Minister for SMEs, Samuel Poulin, announced last Tuesday, March 17, 2026, the
creation of a committee tasked with reviewing all the laws and regulations governing the
alcohol sector. This announcement came as a surprise, much like the CAQ’s recent decision
on ready-to-drink beverages, which was announced without preparation or consultation.

The CAQ is presenting the initiative as a broad modernization of the legal framework, but
without calling the SAQ monopoly into question. The committee will be led by two well-known administrators:

• Diane Lemieux, former President of the Commission de la construction du Québec (CCQ);
• France Dionne, Executive Director of the ITHQ (a leading institution for training in tourism,
  hospitality and restaurant service).

Quebec’s regulatory framework for alcohol dates back a very long time. Until now, changes
have been made piecemeal and very slowly. The launch of this committee therefore marks
the beginning of a major undertaking, the outcome of which could open the market to
proximity retailers and broaden our product offering.

Clarifications obtained by CICC

We questioned the minister about this announcement. Here are the clarifications obtained.

1) READY-TO-DRINK: This initiative could have an impact on the sale of ready-to-drink beverages in our network. The CAQ is not making any specific commitment at this stage. Its response is that, since the committee is tasked with reviewing all alcohol laws, this issue could form part of the discussions and any eventual follow-up. In other words, the door is not closed, but no firm direction has yet been announced.

On the issue of competition between spirit-based ready-to-drinks and the malt beverages already sold in our network, the government’s response remains unsatisfactory. Rather than explicitly acknowledging the risk of direct competition or  sales displacement, it mainly presents the possible access of this category as a free market measure that would expand consumer choice.

2) CONSULTATION: We have been told that convenience stores will be invited to take part in the committee’s consultations. Three consultations are scheduled for May, and the exact modalities will be announced in the coming weeks. This means we will have a formal opportunity to intervene. We will prepare clear, consistent and well documented positions in order to present our case effectively.

We are also told that the role of the SAQ in product categories that compete directly with our network can be raised during the consultations. This is an important point.
Even if the initial announcement explicitly preserves the monopoly, it does not prevent the competitive effects of that monopoly from being put on the table.

3) TIMELINE: The information remains partial. We have been told that consultations will take place in May and that the work will continue afterwards, but no date has been
given for the submission of the report or for any decisions that may follow. With the election scheduled for next October 5, the fate of the committee and its recommendations will therefore be in the hands of the next government, whoever that may be.

In short, this announcement opens a real and interesting window for regulatory reform. And while there is no sign of a willingness to challenge the SAQ monopoly, the broad review means that the SAQ has everything to lose and our industry everything to gain.

For the CICC, the issue now will be to make the most of this opening by clearly restating the commercial reality facing convenience stores, the competitive effects of regulatory choices,
the opportunities to strengthen neighborhood retail, and the need to avoid a partial liberalization that would benefit some players at the expense of others. We will continue to monitor the situation closely.