Currency plunge forces Liquor Corp. to raise prices on some products

The plunging value of the Canadian dollar in comparison to its U.S. equivalent is forcing the Newfoundland and Labrador Liquor Corp. to raise prices on some products.

NLC spokesman Greg Gill said the Crown-owned corporation is "losing money" on some products that are sold in U.S. dollars.

As a result, he said the decision was made to increase prices on about 80 lesser known products by between five and 10 per cent.

The higher prices will come into effect on Sunday, Aug. 30.

"The gap in currency has crossed the threshold," Gill said, referring to the 11-year low of the Canadian dollar, which hovered just above 75 cents US on Monday.

Analysts blame the drop in value on the turmoil in stock markets and the continued rout in commodity prices.

Gill said the NLC buys the vast majority of its products in Canadian currency, but some products, mainly California wines, are sold in U.S. dollars.

He said the decision to raise prices is "100 per cent related to the discrepancy in currency values."

He said "high volume movers" such as Wolf Blass and Yellow Tail wines are not included in the price increase.

The NLC had revenues of more than $300-million in 2013-14, and returned some $152 million to the provincial government.

The NLC operates 24 corporate liquor stores and three satellite locations throughout the province, and supplies nearly 140 Liquor Express retails stores that are operated by individuals or corporations.

There are also 1,400 bars, lounges and restaurants that are licensed to sell NLC products.