Sales of legal bud are reducing purchases of ale and other suds, finance minister claims
Scott Fielding says beer sales are down $6M as a result of legal cannabis
The legal sale of cannabis has vaporized more than $6 million worth of provincial beer sales, Manitoba's finance minister claimed as he continued to predict no net revenue from recreational weed.
Almost six months after Canada legalized the sale of recreational cannabis, Manitoba is not expecting to make a profit off the new industry, Finance Minister Scott Fielding said Monday.
- Province announces multiple taxes on legal pot
- Manitoba's cannabis retailers hit with 6% tax to cover 'social costs' of legalization
Expenditures related to legal cannabis will outpace revenue from its sale for years, said Fielding, who declined to say whether the province will make any cannabis revenue projections in the provincial budget expected on Thursday.
He also suggested any cannabis profits could be offset by reduced beer sales, based on Colorado's experience following legalization.
"When cannabis is introduced to a marketplace, what actually happens is beer sales goes down. We anticipate that our beer sales are going to go down by upwards of $6 million dollars," Fielding told reporters at the Manitoba legislative building.
The official opposition quickly ridiculed Fielding's claim.
"If this government can't make money selling weed then I think their reputation as good managers of money is grossly overstated," NDP leader Wab Kinew said.