The LCBO says it is finally preparing to award a new Ontario-only contract for paper bags — more than a year after Premier Doug Ford ordered the Crown corporation to abandon the Quebec supplier it had originally selected and buy local instead.
In 2024, the LCBO signed a contract worth more than $10 million with Rosenbloom Groupe Inc. to supply paper bags across the province. The deal came shortly after Ford directed the liquor retailer to reverse its environmental push to phase out single-use bags altogether and restore paper bags in stores.
But when the LCBO revealed that a Quebec distributor had won the tender, Ford instructed the agency to replace the agreement “as soon as possible” and shift to an Ontario-based manufacturer — a directive that has hung over the Crown corporation ever since.
After months of silence, the LCBO has now confirmed it will issue a new RFP restricted to Ontario companies, with a replacement contract expected to be in place by summer 2026. The government says the tender process will begin early in the new year and insists there will be no additional cost to switching suppliers.
The LCBO did not clarify whether the contract with Rosenbloom Groupe will be ended early, while the province indicated the transition would not trigger extra financial penalties.
The turmoil over paper bag procurement began in early 2024, when Ford abruptly announced he wanted the LCBO to bring back paper bags just months after they had been removed. The retailer had ended paper bag use in September 2023, saying the move would eliminate 135 million bags per year and help meet environmental commitments.
Ford’s office countered that forcing shoppers to buy reusable bags was unfair “at a time when many Ontario families are already struggling to make ends meet.” Internally, the idea of requiring Ontario-made bags gained momentum, partly as a way to boost the province’s forestry sector.
Despite that direction, the LCBO awarded the original contract to a Quebec company — sparking frustration from the premier. In a letter to the LCBO, Ford said the decision went against his government’s priorities and ordered a new Ontario-only tender.
The newly announced RFP marks the first concrete step in fulfilling that instruction, setting the stage for Ontario companies to take over production of the LCBO’s paper bags by 2026.