Yellowknife liquor prices drop as territory steps in
Cost of spirits falls the most as prices come into line with rest of Northwest Territories
This week drinkers in Yellowknife saw a rarity in the North — a price drop.
The territorial government is once again regulating prices at the city's two liquor stores and the price reductions came into effect on Tuesday.
"Spirits are going to be in the eight to 10 per cent range and wines will probably be in the five per cent range. It will depend on the product and our cost for the product, of course," said Peter Maher of the Liquor Licensing Commission.
A 750 millilitre bottle of Smirnoff vodka that used to sell for $38 now sells for $33. There are similar drops on other brands of hard liquor. Beer, wine and cooler prices remain virtually the same.
"This brings the stores in Yellowknife to the consignment model, which is what we have in all other locations in the Northwest Territories. So standardizing is what we're doing across the board," said Maher.
The city's liquor store had been on the consignment model, until a second liquor store opened in 2002. That's when the liquor commission decided to let the city's stores set their own prices, with the idea that competition would keep prices in check.
Instead, Yellowknife ended up with some of the highest liquor prices in the territory.
Both liquor stores in Yellowknife are now owned and operated by the same person, who will be paid a monthly commission by the government based on the volume of each product sold.
Taxes and other government charges still make up roughly half the retail price of booze in the Northwest Territories.
According to the commission, that amounts to $30 for each litre of hard liquor sold. In Alberta, those charges amount to less than half that.