It's possible because the overhead won't be nearly as high. But at least it'll be more convenient.
It would vary.
LCBO has artificially inflated foreign wines by paying more than what they are worth so they can sell it for a higher price. They have some sort of restriction on how much more then can charge than their purchase price.
The cheapest beer would see no drop in price, because the cheapest price is regulated by the government but, more expensive options could drop in price.
We do have the right to not shop at the LCBO and brew our own... Can't distill but home brewing methods can still get strong drinks. Just not distilled strong (which is then watered down most of the time in mix anyways)