Campbellton – Are you a New Brunswicker who buys beer in Quebec because it is so much cheaper? Then watch out. NB Liquor, the government monopoly which sells beer in this province, wants to put a stop to cross-border beer trips — about which it has consulted the RCMP.
If NB Liquor has its way, fewer New Brunswickers will be taking advantage of cheaper beer in Quebec, like this on sale across the bridge in Listuguj First Nation.
One of the reasons behind the move is that NB Liquor plans to open a new liquor store in Campbellton next year. Dana Clendenning, President and CEO of NB Liquor, told The Tribune last week that while he could not reveal the name of the landlord or the new location until the final deal is signed, a new store of between 6,600 and 7,000 square feet would be built.
It will be laid out in the new décor with a Centre of Discovery and new colour scheme and lighting fixtures and signage and all that. It will be a very new, modern facility similar to those in Perth-Andover or Grand Falls. Construction should start this autumn and the store would be open by next March or April.
While Clendenning would not say where the store would be located, earlier statements from NB Liquor said that the preference would be a location on Roseberry St. in Campbellton between Subway and Sugarloaf Streets.
An earlier plan to locate the new store in the old Woolworth’s Building, currently undergoing redevelopment, fell through.
“There will be a better wine selection and better spirits selection and a better ready-to-drink selection as well in an effort to generate more sales in those categories because, as you know, we are losing beer sales to the Quebec side. So we are trying to compete by enhancing our beer and wine sales on our side of the border. And we do generate some traffic from the Quebec side for those products,” said Clendenning.
Business coming the other way from Quebec into New Brunswick did not seem to be a concern, at least when Clendenning spoke to The Tribune in April.
“We do get business coming the other way, because we do have a good selection of wine and spirits and better than what is available in the immediate area on the other side. There is some business that comes back to us because of our wine portfolio, and our spirit portfolio, and our selection of coolers as well. It doesn’t totally offset what we are losing in beer sales…”, he said at the time.
Sales Down
Just how NB Liquor might compete could involve taking police enforcement measures against the many local people who buy their beer in the Quebec side.
A case of beer costs about $40 in New Brunswick, while some brands such as Coors Light can be purchased in private convenience stores on Listuguj First Nation for as little as a dollar a can or bottle, exclusive of deposit, and sometimes for less than that. Beer sold in grocery stores outside Listuguj First Nation tends to be more expensive.
NB Liquor spokesperson Nora Lacey defended the monopoly’s position.
“This is not a new issue, however, the situation is getting worse. We have developed some measures to help stem the loss; we have notified the breweries of the situation and are in discussions with them and we have made an inquiry to the RCMP as to the legalities around the transportation of beverage alcohol across provincial boundaries.”
Lacey said that the Campbellton liquor store sells far less beer than expected for the size of the population.
“Public beer sales volumes are down 23 per cent year-over-year at the Campbellton store.
For example, Grand Manan with a population of 2,460 (2006 Census) outsells Campbellton/Atholville/Tide Head with a combined population of 9,776 by 20 per cent. From April-July 2008, Grand Manan sold 53,472 liters vs Campbellton at 44,603,” she said.
“This issue is significant and given our intent to provide the city of Campbellton with a new and larger store we must make every effort to understand the situation.”
Asked if NB Liquor specifically requested the RCMP to enforce laws governing the interprovincial transportation of alcohol, Lacey said, “In the process of exploring all options, we inquired as to their capabilities with respect to enforcement of the provisions of the Liquor Control Act of New Brunswick and the federal Importation of Intoxicating Liquors Act.”
Lacey said that when Clendenning was referring to Quebec consumers buying at NB Liquor, he was referring to tourists.
Not Priority Yet
Restigouche-Chaleur District Commander Insp. Roland Wells confirmed that it is, in fact, illegal to bring more than 12 “pints” of beer into the province from another province.
“Section 43(c) of the NB Liquor Control Act states that a person of age may bring into the province, ‘liquor not in excess of one bottle or beer not in excess of twelve pints purchased outside New Brunswick from a liquor commission, board or similar body in any province or territory of Canada by such person…’ “
However, Wells said that he has so far received no directive from his superiors to step up enforcement of the law or to make it priority.
“Our search and seizure powers are the same for any issue like this. Nothing has changed and I have not given any direction to my members to change the manner in which we enforce this Act. I have not received any direction from the Province or from the RCMP to include this as one of our main enforcement priorities. It is a part of our regular duties,” he said.
“The enforcement of the Liquor Control Act has always been a part of our job and that has not changed. The legal limit for people to bring into NB from Quebec is one dozen beer and that has not changed. We have enforced this law but generally, we concentrate on larger importation issues that are more straightforward to prove.”
Wells said that even if such directions were forthcoming, he would attempt an educational campaign first before increasing any enforcement actions, such as was done with excessively noisy vehicle enforcement.
Price the factor
Lacey agreed that the attraction to buy in Quebec is based on price.
“Yes, price is definitely the problem. In New Brunswick we have a Social Reference Price (SRP) for beer. This SRP is the lowest retail price we will allow beer to be sold at. This helps to reduce the social issues which can result from over-consumption.
For example, 12 bottles retail for $20.50, the SRP is $17.98. Most liquor jurisdictions who [sic] control the distribution of beer have SRPs. In the case of Quebec, beer distribution is mainly done through grocery outlets, not the SAQ. We believe the social reference price in Quebec to be approximately $21 for 24 or $10.50 per dozen.”
Lacey said however that NB Liquor has spoken with breweries and “have asked for their assistance in finding solutions.” However, she said, “we have not asked them to raise prices in Quebec.”
“This is a complex issue which is why we are researching all avenues, including legal advice. This is all the insight I can provide at this time, as we review and evaluate the options.”
Originally written BY :Tim Jaques
