Out of reach

Permit fee hike could hurt events in the County

As of April 1, 2018, the Alcohol and Gaming Commission of Ontario (AGCO) has made it more expensive to obtain a Special Occasion Permit (SOP) for anyone wishing to have, or sell, alcohol at an event.

Under the Ontario Liquor License Act, anyone wishing to serve alcohol outside of a residence or licensed establishment must first obtain an SOP. An SOP is also required to sell alcohol anywhere outside of a licensed establishment. It is also a strict rule of the AGCO that SOPs be for occasional, special events only, and not for personal profit, or for running an ongoing business. Many wineries and special event companies in the County rely on SOPs for certain events throughout the year like weddings, annual festivals and holidays.

There are two types of SOPs that the AGCO will issue. A No Sale SOP and a Sale SOP. A No Sale SOP is for events where alcohol is served without charge, or the permit holder absorbs all costs for the alcohol. No Sale SOPs have been raised from $25 a day to $35 a day, but the goal is to increase it to $50 a day by 2020. The Sale SOP is the one that is most used by event companies and wineries. Sale SOPs are required when the attendees of the event are charging money for alcohol via a cash bar or an admission charge. Sale SOPs have risen dramatically. Before April 1, the cost was $75 for a threeday permit. After April 1, the cost has risen to $150 for a one-day permit.

A rise of that magnitude has significant impact on local businesses that are already working with razor thin margins and ultra-tight budgets. Wedding and event planner Kathy Conners works for Waupoos Winery, which will host over 20 weddings this summer.

“We are lucky here at Waupoos Winery that special events fall under our catering license. I have heard from other wineries though, that is a real challenge for them. Although we don’t pay them, the costs hurt everyone in the industry. I personally feel that supporting businesses is the key to sustaining growth in the County and this will just hurt the smaller start-up venues. It’s very limiting,” says Conners.

The AGCO is a province-wide commission that may not be thinking about how this increase will affect the smaller communities. This price-hike may not be felt as much in the larger cities, but here in the County it will undoubtedly cause winery owners to re-think hosting future events that require an SOP.

Winery owner Sherry Karlo does not have a catering license and relies on special event permits to host weddings and enhance the customer experience at Karlo Estates Winery.

“It’s time the whole system takes a fresh look on how they operate. Many policies were created long ago and are now being patched up to try and keep them viable. It’s time the AGCO find other sources of income. How about raising the fees of foreign wine coming into the country to encourage the Canadian wine industry? These fees and antiquated rules hurt the little guys the most,” says Karlo.