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The 164-outlet Wine Rack, owned by U.S.-based Constellation Brands, and the 104-outlet Wine Shop, owned by Canada?s Andrew Peller Ltd., are exempted from the publicly owned LCBO?s 66.5 per cent markup, instead paying a much lower tax rate of 16.1 per cent for blended wines sold on their own shelves. But, as is required by law, the two private wine chains charge the same retail price as the LCBO, which has 639 stores, for the same products, enabling them to earn higher profits on those bottles.

Source: http://on.thestar.com/1EbZaUq