Most liquor boards have "reference" or "floor" pricing standards, that set the minimum retail price points for each product category. All boards encourage premium pricing to enhance profit. Boards are often reluctant to allow competiting products from the same country of origin with similar pricing to enter their market since this may not complement what is already available.

All products are subject to excise tax, environmental taxes or levies, plus federal and provincial taxes. Liquor boards work with international freight forwarders and arrange delivery from point of production or nearest port. Because the product is picked up in the country of origin, the liquor boards are responsible for the taxes.

FOB or ex-works prices are subject to liquor board markups that are added on top of freight and other costs. These markups can well exceed 100 percent of product cost and freight, depending on beverage type and country of origin.

Each liquor board has its own retail store and distribution system, staffed by union employees (the province of Alberta is privatized). Licensed bars, restaurants and hotels etc., must buy their products through the liquor board outlets, many of which have "licensee depots" to handle this channel. There is a slight discount in cost in most provinces, which is available to all outlets equally. It is illegal to offer on-premise accounts incentives or inducements to buy specific products. Licensees may however, use branded items such as glasses, POS material, and other items to promote specific brands.

Liquor board purchasing groups have strict sales quotas for all brands listed. Brands not achieving quota are discounted at the supplier's cost and sold out. Individual stores have the power to list or de-list brands, dependent on volume, compared to other brands in a given category. If products are performing well and growing in sales volume, they will be maintained. New brands are provided with initial distribution into only some of the retail stores, usually the largest in the province, but there is no guarantee that they will remain in these stores as sales quotas are reviewed every three months. It is up to the agent's sales force to grow distribution and to establish shelf space in other retail outlets on a store-by-store basis and to promote the brand through other avenues.

Suppliers are encouraged to participate in liquor board advertising and merchandising activities, as well as other promotional programs such as consumer advertising, in-store tastings and on-premise activities. These proposed brand investment costs are reviewed before brands are considered for listing. All actual promotion spending is continually reviewed.

A full marketing plan must be submitted as part of the initial application process, which must be made through a licensed agent, working in the province and representing the producer. Many liquor boards offer "calls" for various product groups, and they consider products, packaging, promotional spending, and actual sales in other regions in their review of potential products for their boards. Liquor boards will not review unsolicited products that are not represented by a qualified agent. It can take up to one year to launch a new product into the retail system.

Most liquor boards have two distinct departments: "General List", the products of which must comply to Canadian standards and quotas; and "Vintages or Specialty", the products of which are international, of unique types and price points, and are not required to change packaging to meet standards. These products are usually reviewed, selected for listing, and purchased on a one-time basis. A move to the "General List" may be possible if sales are sufficiently strong on a subsequent application.

Payment terms

New products purchased by the liquor boards usually have 60 or 90-day payment terms. Once listed and carried on a regular basis, the government liquor boards pay suppliers in 30 days after receipt of goods. Note that the provinces of Alberta and British Columbia sell products on a consignment basis, therefore suppliers are not paid until the product is sold. In Ontario, all "General List" products are subject to a 25% rebate should the product not sell and be delisted. Payment terms must be offered by the supplier in the submission application and these terms can make the product more appealing for the listing decision.