On July 21, Nine Canadian provinces have signed a new Operating Agreement on Direct-to-Consumer (DTC) Sales of Alcoholic Beverages, marking a positive step toward reducing barriers to interprovincial trade and improving consumer access to Canadian-made beverage alcohol, including spirits and spirits-based Ready-to-Drink (RTD) beverages.
The Agreement establishes a common framework that will allow participating provinces to implement systems that enable consumers to purchase alcoholic beverages directly from licensed producers in another participating province and have those products delivered to their home for personal use.
While the Agreement represents meaningful progress, it does not create a single national system overnight. Each participating province will continue to establish and administer its own requirements for licensing, taxation, age verification, delivery, compliance, and public safety.
The Agreement applies only to direct sales from producers to consumers. It does not change how alcoholic beverages are sold through wholesalers, retailers, or provincial liquor authorities.
Participating Provinces
The following provinces have signed the Operating Agreement:
- Alberta
- British Columbia
- Manitoba
- New Brunswick
- Newfoundland and Labrador
- Nova Scotia
- Ontario
- Prince Edward Island
- Saskatchewan
The Agreement builds on the 2025 Memorandum of Understanding on Direct-to-Consumer Sales of Alcoholic Beverages, which also included Québec and Yukon. While those jurisdictions are not parties to the July 2026 Operating Agreement, the Agreement allows additional provinces and territories to join in the future.
Key points in the Operating Agreement
For the first time, participating provinces have agreed to a common approach for enabling direct-to-consumer sales across provincial borders.
Once each province implements the necessary regulatory and administrative processes, consumers in participating provinces will be able to order eligible products directly from licensed producers in another participating province and have them shipped to their home for personal consumption.
The Agreement also establishes several important principles:
- Products sold through the system must be manufactured by the licensed producer selling them.
- Provinces retain authority over alcohol regulation within their own borders, including legal drinking age, pricing, taxation, licensing, delivery restrictions, and enforcement.
- Producers shipping into another province must comply with the rules and authorization requirements of the destination province.
- Provinces may continue to collect applicable taxes, mark-ups, and other charges on products shipped into their jurisdiction.
What this means for the spirits sector in Canada
The Operating Agreement is an important step toward modernizing Canada’s internal market for beverage alcohol.
The Agreement has the potential to:
- Expand market access by allowing producers to reach consumers in participating provinces through direct-to-consumer sales.
- Increase consumer choice by making more Canadian spirits and spirits-based RTDs available across provincial borders.
- Support business growth by reducing long-standing barriers to internal trade.
- Create new opportunities for premium, limited-release, and small-batch Canadian spirits that may not receive broad retail distribution.
- Strengthen Canada’s domestic spirits industry while maintaining strong public safety and regulatory oversight.
Spirits Canada has long supported efforts to modernize Canada’s internal trade framework.
Spirits Canada long supported efforts that help modernize Canada’s internal trade framework to create more opportunities for the spirits sector. This Agreement represents meaningful progress toward a more open and efficient domestic marketplace while recognizing each province’s authority to regulate alcohol responsibly.
At the same time, Canada’s spirits sector is deeply integrated into global supply chains and international markets. While reducing internal trade barriers is important, continued growth also depends on maintaining stable, zero-for-zero trade relationships with Canada’s key trading partners.
A modern domestic marketplace, combined with open and predictable international trade, will help ensure Canadian spirits and spirits-based ready-to-drink (RTD) products remain globally available and competitive, at home and abroad.
What’s Next?
Although the Agreement has been signed, implementation will occur province by province.
Participating governments will now establish or update the systems required to support direct-to-consumer sales, including licensing processes, tax collection mechanisms, compliance requirements, and administrative procedures. Additional provinces and territories may also choose to join the Agreement over time.
Key Takeaways
- Nine provinces have signed a new Operating Agreement to facilitate Direct-to-Consumer (DTC) sales of beverage alcohol across provincial borders.
- The Agreement is designed to reduce barriers to interprovincial trade while respecting each province’s authority to regulate alcohol.
- Consumers will eventually be able to purchase eligible products directly from licensed producers in participating provinces for personal use.
- Provinces will continue to oversee age verification, taxation, licensing, pricing, public safety, and compliance.
- The Agreement creates a common framework for implementation and allows additional provinces and territories to join in the future.
