HALIFAX: According to a new report from the Canadian Federation of Independent Business (CFIB), when compared to the rest of Canada, Atlantic provinces have some of the most restrictive alcohol sales markets in the Country.
“Almost every province across Canada allows some private competition in alcohol sales. Alberta and Saskatchewan’s public liquor corporations only act as wholesalers,” aid Duncan Robertson, report author and Director of Legislative Affairs for Nova Scotia and the Canadian Federation of Independent Business. .
“British Columbia has both private and public retailers. Quebec and, more recently, Ontario, let consumers decide—shop at a government monopoly or a local business.
“If it works in these provinces, why can’t it work in Atlantic Canada?”
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The report finds that, due to limited competition, Atlantic Canadian small businesses in the retail and alcoholic beverage sectors are missing out on potential economic gains that increased competition could bring to their businesses.
With small businesses in the region still exhibiting low levels of optimism for the next 12 months, due to economic uncertainty and trade tensions with the United States, governments need to make choices that drive economic productivity for the region’s small businesses.
“In Ontario, we’re seeing reports of increased foot traffic as a result of their recent changes, with some convenience store owners calling it a saving grace,” said Robertson. “In British Columbia, B.C., beer sales are topping every specific type of alcohol product sold.
“Even in Newfoundland and Labrador, which has limited private sales, the NLC generated $70.1 million in revenue from the sale of local beer through convenience stores.
“The benefits are there, and Atlantic Canada is missing out.”
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In addition to improved private competition, CFIB is also recommending other policies that would modernize how alcoholic beverages are sold in the region:
- Direct
o-to-Consumer Sale (DTC): Atlantic Provinces should move forward with DTC shipment of alcoholic beverages inter provincially unilaterally as is being done in Manitoba rather than depending on memorandums of understanding (MOUs or individual agreements that could result in a patchwork of 80 separate agreements.
- Cross-Selling: Cross-selling policies allow local producers such as breweries, cideries, and wineries to sell other locally produced alcoholic beverages, as currently seen in New Brunswick. By allowing local producers to support local, provinces can increase the competition in the market while also expanding and bolstering the local industry.
- No-Touch-No-Tax: For sales methods where the provincial alcohol authority’s distribution network is not used, such as direct sales to restaurants and other businesses as well as direct sales to consumers, there should be no markup charged. This would provide much-needed tax relief and also provide an incentive for local producers to develop distribution chains.
- Improved Data and Transparency: Governments should consider publishing or providing support to local association to publish online tools for consumers to easily find local breweries and other alternatives to their province’s alcohol authority. For example, the Government of Ontario recently published an interactive map that helps consumers find nearby stores to purchase local alcoholic beverages.
“At the end of the day, these changes would not be radical, they would simply bring Atlantic Canada to the level of almost every other province in Canada,” Robertson concluded.
