NL

Booze buying costlier in N.L. than most provinces

A price hike by the Newfoundland and Labrador Liquor Corporation makes booze buying in the province among the costliest in the country.
The Newfoundland Liquor Corporation jacked up its prices on Sunday by an average of three per cent. (CBC)

This week's price hike by the Newfoundland and Labrador Liquor Corporation will help reduce the provincial deficit, but it means you pay more for beer, wine and spirits than most Canadians.

The NLC raised its prices on Sunday by an average of three per cent. ​

"This year the price increase will look to deliver in the vicinity of $11-million," said Greg Gill, the NLC's director of marketing and communications.

"We're looking to increase our dividend to government by close to $20-million so that will also come by way of reducing costs."

Crunching the numbers

A comparison done by CBC News shows that what Newfoundlanders and Labradorians pay for alcohol is in some cases substantially more than the rest of the country.

The price comparison does not include Alberta where alcohol is sold through private retailers so prices aren't consistent, or Quebec where beer and wine are sold in corner stores, not just by the province's crown liquor corporation.

The numbers show, for example, that a bottle of Lambs Palm Breeze Rum — one of the NLC's biggest sellers — costs $27.99 for a 750 ml bottle here, compared with $24.49 in Manitoba.

The British Columbia price does not include taxes and bottle deposits.  

A comparison of what it costs in different provinces to buy a 750 ml bottle of rum. *B.C. price excludes taxes and deposit. (CBC)

A dozen Labatt Blue will set you back $25.75, only 75 cents more than in other Atlantic provinces, but a lot more than the $19.75 price in Ontario.

A dozen beer is cheap in Ontario, but much more costly in the Atlantic region, including Newfoundland and Labrador. *B.C. price excludes tax and bottle deposit. (CBC)

If you enjoy a glass of red wine, you will shell out $14.38 for a bottle of Lindeman's Bin 50 Shiraz. That's just a little over the PEI price of $13.99 but a lot more than the $11.95 charged in Ontario.

A bottle of Lindeman's red wine will cost you more in Newfoundland than anywhere else in the country. *B.C. price excludes tax and bottle deposit. (CBC)

Even Screech rum which is blended and bottled in this province isn't cheaper here. B.C. and Ontario sell it for less.

We did find one bargain. A bottle of Glenlivet 12-year-old scotch is cheaper in this province than anywhere else in the country.

Small population, less buying power

Greg Gill said prices are generally more expensive here partly because of taxes. He said larger provinces also have more buying power.

"They can negotiate better prices, so in essence with a smaller population and the geography where we are, it is often more expensive to deliver products to market," he said.

The Newfoundland Liquor Corporation says the price hikes will generate about $11 million for the provincial government. (CBC)

Gill said the NLC doesn't closely monitor prices in the rest of the country.

"We look at our cost to do business and our revenue targets," he said.

Meanwhile, another price increase could be just around the corner.

The province has said that everything is on the table for its deficit-fighting budget due later this month.

With files from Peter Cowan