77 per cent of small businesses in Atlantic Canada welcome privatized alcohol sales: CFIB report

A recent report from the Canadian Federation of Independent Business (CFIB), shows Atlantic Canada has the most restrictive alcohol sales compared to the rest of the country.

The report, Untapped Potential: A Case for Improving Private Competition in the Sale of Alcoholic Beverages in Atlantic Canada, also found that 77 per cent of small businesses in Atlantic Canada want their governments to allow private retailers, such as convenience stores, gas stations and grocery stores to sell alcoholic beverages.

“Almost every province across Canada allows some private competition in alcohol sales. Alberta and Saskatchewan’s public liquor corporations only act as wholesalers. 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?” said Duncan Robertson, report author and director of Legislative Affairs for Nova Scotia and the CFIB.

According to the CFIB five in 10 small businesses in Atlantic Canada cite lack of demand as a top impact to their business. Allowing retail small businesses to sell alcoholic beverages has the potential to attract more customers to these businesses.

In May, the Government of Nova Scotia announced a survey of 1,500 Nova Scotians to help provide direction on where alcohol could be sold.

“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. 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,” added Robertson.

CFIB also recommended other policies in their report that would modernize how alcoholic beverages are sold in the region:

• Direct to-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.
• 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.
• 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.

There’s a coalition against expanding alcohol retail opportunities, that includes the Canadian Cancer Society, that is warning of the harms associated with alcohol consumption.

The union who represents Nova Scotia Liquor Corporation employees says the current model is the responsible one.