Government instructs LCBO to switch $10M paper bag agreement inked with Quebec firm

The Ontario government, led by Premier Doug Ford, has recently called on the Liquor Control Board of Ontario (LCBO) to source an Ontario-based supplier for its paper bags. This comes after the LCBO had previously secured a $10 million contract with a Quebec-based company, Rosenbloom Groupe Inc.

Premier Ford expressed his dissatisfaction with the LCBO’s decision in a letter sent on a recent Tuesday. He noted that the choice of a Quebec company was in opposition to the government’s objective of supporting local Ontario businesses. He subsequently instructed the LCBO to commence a new search for a supplier within Ontario to ensure that locally produced bags are made available as soon as possible.

Despite the push for local production of paper bags being discussed within the premier’s office back in April, this directive was never formally communicated to the LCBO. This delay in communication has raised some concerns and questions about the timing of this new directive.

Furthermore, the LCBO had stopped the use of paper bags in September 2023 as part of an environmental initiative aimed at significantly reducing its carbon footprint. However, Premier Ford expressed that this decision had negatively impacted accessibility and affordability, two factors he believes are crucial for Ontario residents.

Even though there was initial enthusiasm for an Ontario-made solution, this idea was not included in Ford’s final public statement. However, with this new directive, the government is now emphasizing the use of local resources and supporting local businesses.

Despite the finance minister’s initial stance that the government should not interfere in the LCBO’s procurement policy, Premier Ford has intervened, urging the LCBO to reconsider their decision and focus on local Ontario suppliers.

The details regarding the potential cost of canceling the existing contract with the Quebec-based company remain unclear. However, the Premier’s office expects the LCBO to keep costs low. The LCBO has confirmed that the contract with Rosenbloom Groupe Inc. will remain in place for now to ensure the availability of paper bags in the coming weeks. However, they will also initiate a new tender process limited to Ontario suppliers as soon as possible.

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