The Beer Store is actually privately owned, ownership is split between Labatt and Molson-Coors.
Unfortuantely it has a monopoly in Ontario, which results in high prices. My in-laws frequently drive over to Quebec is get cheaper beer at their corner stores.
The LCBO though, is a crown corporation owned by Ontario. They have the monopoly on hard liquor.
Basically Ontario is as screwed up as Pennsylania, where you have to get your beer at "Distributors" and your liquor at "State Stores", resulting in higher prices for both.
My wife is Canadian and relatives from her side of the Family just shake their heads and scream, when they see me getting 30 packs of Labatts at a Rite Aid Drug Store for $7.00 after a $8.00 rebate and they are paying upwards to $45.00 and can only buy it at the Beer Store. So whenever we go across the river to visit them, I always pick up a case and a $18 Litre bottle of Crown Royal at the Duty Free for them.