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№ 01Buying & Selling a Business · Wineries, Breweries & Distilleries · Canada-Wide

Buying or selling a winery, brewery or distillery

Craft wineries, breweries, and distilleries across Ontario — the AGCO manufacturer licence is the deal's central regulatory hurdle, and it has to be re-issued to the buyer, not simply assumed with the equipment. Where vineyard land is involved, VQA appellation certification and any LCBO listings run as their own workstreams alongside it.

Part of Agriculture & Rural — see the family overview.

№ 01.1The Numbers That Drive the Deal

The numbers behind the deal

Every figure below is a typical Canadian deal-market pattern, not a valuation — use it to sanity-check what you're being told.

MetricTypical benchmarkUse this to
Licence-class valueA manufacturer licence that includes on-site retail authorization generally carries more value than a production-only licence.Understand how much of the value is tied to the licence's scope, not just the equipment.
VQA/appellation standing (wineries)Certified appellation status tied to specific vineyard land supports premium pricing over uncertified production.Weigh appellation certification as a distinct value driver from the winery brand.
LCBO listing performanceAn active, well-performing LCBO listing is a distinct, negotiable asset, separate from the value of the production facility.Price an existing listing on its own performance, not folded into general goodwill.
Valuation conventionPriced off a blend of real property, production capacity, and normalized operating earnings — rarely one factor alone.Separate what you're paying for land and equipment from what you're paying for the operating business.
Inventory and aging-stock valueBarrel-aged or cellared inventory is valued and counted separately from finished-goods stock.Budget for a closing-day inventory count that's more involved than a typical retail business.
1

An AGCO manufacturer licence has to be re-issued or transferred into the buyer's name — it doesn't travel automatically with the equipment or the building, which keeps regulatory approval on the deal's critical path from day one.

2

VQA appellation certification for a winery is tied to specific vineyard land and production practices, not to the brand — a buyer needs to confirm what certification actually carries forward with the land being purchased.

3

An LCBO listing or distribution agreement is a commercial relationship the LCBO itself reviews on a change of ownership — it's a separate approval from the manufacturer licence, and needs its own line of diligence.

№ 01.2The Deal, End to End

Six steps, from offer to ownership

The same sequence underlies almost every winery, brewery or distillery deal — what changes from deal to deal is how long each step takes, and which one becomes the bottleneck.

Reaching an agreement

01

Offer & conditions

The offer sets price and key terms — for a winery, brewery or distillery it should build in the conditions that actually matter from day one, not just financing.

usually 1–2 weeks
02

Agreement of purchase & sale

The APS fixes price, structure — asset or share — and closing date, plus the reps, warranties, and holdbacks that protect you if diligence turns up something different than promised.

1–3 weeks to negotiate
03

Key transfers open in parallel

AGCO manufacturer licence, VQA/appellation certification (wineries), LCBO listing/distribution agreements, Real property (vineyard/production facility), Equipment & inventory all start moving at once, on separate clocks — this is usually where winery, brewery or distillery deals are won or lost.

often the critical path

Getting to closing

04

Diligence & searches

Corporate, PPSA lien, and litigation searches confirm what you're actually buying; we chase down licence standing and records the seller doesn't always have to hand.

2–4 weeks, in parallel
05

Closing day

Funds, keys, and signed documents change hands, alongside any inventory count and interim authorizations that bridge the gap until final transfers are confirmed.

1 day, once conditions are met
06

After closing

We track final licence confirmation and the staff transition through to completion — nothing is left for you to chase once the deal is done.

1–2 week tail
Most single-location deals close in 90–180 daysLarger, multi-location, or regulator-heavy deals typically run longer.
№ 01.3Deal Structure

Asset sale or share sale?

This is the first real decision in almost every winery, brewery or distillery deal — and it changes what you're buying, what you're taking on, and how it's taxed.

QuestionAsset purchaseShare purchase
What you buyThe operation's assets — equipment, inventory, vineyard or production facility, brand, and goodwill.The shares of the corporation — including its existing licences, listings, and liabilities.
AGCO manufacturer licenceBuyer applies for a new licence, bridged where possible by an interim authorization.Stays with the corporation, subject to AGCO being notified of the ownership change.
VQA/appellation certification (wineries)Reassessed against the specific vineyard land and production practices being acquired.Generally carries forward with the corporation, tied to the same land and practices.
LCBO listing/distribution agreementsReviewed and typically re-established directly with the buyer.Generally continue with the corporation, subject to the LCBO's own change-of-control review.
Real property (vineyard/facility)Purchased and transferred directly, with its own closing.Stays with the corporation as a corporate asset.
Tax angleBuyer gets a stepped-up cost base on the assets purchased; an HST election may apply.Seller may access the lifetime capital gains exemption on qualifying shares.
Typical useConsidered where a clean licensing start matters, or the deal excludes some assets.Considered where continuity of the manufacturer licence, VQA certification, or LCBO listings is the deal's central value.
What you buy
Asset sale

The operation's assets — equipment, inventory, vineyard or production facility, brand, and goodwill.

AGCO manufacturer licence
Asset sale

Buyer applies for a new licence, bridged where possible by an interim authorization.

VQA/appellation certification (wineries)
Asset sale

Reassessed against the specific vineyard land and production practices being acquired.

LCBO listing/distribution agreements
Asset sale

Reviewed and typically re-established directly with the buyer.

Real property (vineyard/facility)
Asset sale

Purchased and transferred directly, with its own closing.

Tax angle
Asset sale

Buyer gets a stepped-up cost base on the assets purchased; an HST election may apply.

Typical use
Asset sale

Considered where a clean licensing start matters, or the deal excludes some assets.

We tell you which structure fits — before you sign anything.

№ 01.5Due Diligence, Both Sides

What gets checked before closing

Different lists depending on which side of the deal you're on — both matter for how smoothly closing goes.

If you're buying

  • Three years' financials, normalized to verified earnings
  • AGCO manufacturer licence standing and application requirements
  • VQA/appellation certification status, where applicable
  • LCBO listing and distribution agreement terms
  • Real property title, survey, and any vineyard-specific restrictions
  • Equipment condition, financing, and PPSA lien searches
  • Aging/cellared inventory valuation method
  • Any AGCO compliance orders or complaints on file
What we do: run the searches, chase the certificates, and flag anything that changes your price or your conditions.

If you're selling

  • Clean books and up-to-date government filings
  • Licence in good standing, with no outstanding compliance issues
  • VQA certification documentation organized, where applicable
  • LCBO listing performance history assembled
  • Equipment lien payouts lined up before closing
  • An agreed method for counting and valuing inventory
What we do: tell you what a buyer's lawyer will ask for — before they ask for it.
№ 01.6Costs & Fees

You'll know the number before we start

No open-ended hourly surprises — the cost is confirmed in writing before any work begins.

Type of workFeeHow it's confirmed
Straightforward purchase or saleStarting from $3,388.87
Our charges · taxes included
Confirmed in writing once we see the agreement.
Larger or more complex dealQuoted to scopeShort call → fixed written quote before any work begins.
Searches, filings & third-party feesAt costItemized on your invoice, not marked up.
Other costs to budget for, depending on your deal: the AGCO manufacturer licence application or transfer fee, VQA certification review costs, LCBO listing-transition costs, a broker's success fee if the deal was listed, and inventory purchased at the count. We confirm all of these once we see your agreement.
Most deals start here

An owner-run business

A single production facility with straightforward licensing and one buyer, one seller.

Start my file
A bit more involved

A larger or more complex deal

A winery bundled with vineyard real property and VQA certification, a producer with multiple LCBO listings, or a deal involving several production sites.

Book a consultation

Not sure which you are? That's our job to figure out, not yours. As a rough guide, most deals under a couple of million dollars are the first kind — above that, you're usually in Mergers & Acquisitions territory.

№ 01.7The Landscape

Wineries, Breweries & Distilleries, in context

Typical deal size
$500K–$8M+
Typical closing
90–180 days
Usual structure
Either sale

Typical patterns across Canadian deals — not a quote or advice; every deal is confirmed on its own facts.

№ 01.8Before You Ask

Common questions

Can we keep producing and selling on-site while the manufacturer licence transfer is in progress?

Often, yes — an interim authorization can let production and on-site retail sales continue under temporary authority while the full application works through AGCO. What applies to your specific licence and timeline gets confirmed before closing, not assumed.

If we buy a winery's vineyard land, do we automatically get to label our wine VQA?

Not automatically — VQA appellation certification is tied to the specific land and production practices, so it needs to be reassessed against what you're actually acquiring and how you intend to run it. We confirm what carries forward before you build a business plan around a specific appellation claim.

Does an LCBO listing transfer with the business, or do we have to reapply?

It's reviewed separately from the manufacturer licence — the LCBO looks at the change of ownership on its own terms, and listing continuity, shelf placement, and pricing terms are things we confirm directly rather than assume carry over automatically.

How is aging or cellared inventory valued at closing?

It's counted and valued separately from finished-goods stock, using a method agreed in the purchase agreement — barrel-aged spirits or cellared wine represent real, ongoing value that a straightforward inventory count doesn't capture on its own.

Should we do an asset sale or a share sale for a licensed producer?

Where the manufacturer licence, VQA certification, or LCBO listings are hard to re-establish quickly, a share sale that keeps the corporation intact is often preferred. Where the buyer wants a clean start or is excluding certain assets, an asset sale is more common.

№ 01.9Resource Register

Official links

ResourceOfficial link
AGCO — manufacturer licensing (wineries, breweries, distilleries)
Licence transfers and interim authorizations
Visit www.agco.ca
VQA Ontario
Appellation certification for Ontario wines
Visit www.vqaontario.ca
LCBO
Listing and distribution relationships
Visit www.lcbo.com

Where we close winery, brewery or distillery deals

Ready to begin?

Tell us about your winery, brewery or distillery deal — we'll point you the right way and confirm the cost in writing before any work begins.

Prefer to talk first? Call 1-844-900-1070 — it’s free.
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