Buying out-of-province alcohol is ‘slow process,’ business owners say

Restaurant owners and bars are calling on the Canadian government to take down internal trade barriers limiting the sale of alcohol. Paul Hollingsworth reports.

Finding improvements for interprovincial trade was the focus at a recent panel discussion in Halifax.

“Alcohol is often the poster child for internal trade dysfunction in this country,” said Jay Barber, who is with Internal Trade Intergovernmental Affairs, in Ottawa. “I can’t say how many times I’ve heard that it is easier for me to access Alabama than Alberta.”

According to Rosewood Estates Winery General Manager Will Roman, the sale of alcohol in Canada is inefficient and limiting profitability.

“I’m not set up for success because of that,” said Roman, who added wineries like Rosewood Estates in Lincoln, Ont., are not allowed to deal directly with most bars and restaurants in other provinces. They must first sell to the local provincial government-run distributor.

In Nova Scotia, government rules require all alcohol to flow through the Nova Scotia Liquor Corporation (NSLC) before being sold.

“They cannot contact us directly and say, ‘hey Rosewood, we want to order this product at this number of cases,’” said Roman, who also can’t offer bars and restaurants a cheaper deal.

Jeff Van Horne, owner of the Dear Friend bar in Dartmouth, N.S., says if they were able to get alcohol at a more affordable price, they could introduce it to their guests and it would be a win-win for everyone.

Van Horne believes removing some of these trade barriers could help his bottom line and offer support for small businesses across the country.

“We wouldn’t be serving our community, if we weren’t serving products that are local and support the Canadian economy,” said Van Horne.

Selling alcohol first to the NSLC, instead of directly to businesses, can also cause delivery delays. Some products can take up to several months to arrive.

Changing these rules lies with the individual provinces. Nova Scotia Premier Tim Houston said he is working on a solution, as provinces struggle through some of the same hurdles in the ongoing trade war.

“I think the federal government shares the same goal: Free trade in Canada,” said Houston. “It’s one country and we should trade freely within our country.”