Could NB Liquor cutting some beer prices send Nova Scotians over the border?
5 popular brands will cost $1.24 per can in N.B. until Sept. 4, compared to $1.93 in N.S.
From this week to Labour Day, NB Liquor has cut the price of six popular cans of beer — and that could lead to some big savings for Nova Scotians willing to drive across the provincial border to pick up much cheaper suds.
Alpine and Moose Light, both made by Moosehead Breweries, as well as cans of Budweiser, Bud Light, Canadian and Coors Light will all be down in price.
NB Liquor has said the promotion has nothing to do with keeping sales in their province instead of Quebec, but Moosehead Breweries believes that's had a direct impact on decision making.
In New Brunswick, Molson Canadian, for example, will now from $1.86 to $1.24 per can.
That price in Nova Scotia is $1.93 per can.
Provincial rules dictate that Nova Scotians are allowed to transport up to 24 litres of beer, for personal use, purchased in another province.
With 355 ml per can, that means people are able to bring back four cases of 15 cans in the mix-and-match promotion.
So could that send people over the border to New Brunswick to purchased cans of beer at the low promotional price?
Trevor Grant, vice-president of sales and marketing with Moosehead Breweries, says it's a possibility.
Luring beer drinkers into N.B.?
"New Brunswick has battled with this issue for a long time in terms of the price differential to Quebec, and whether that border just simply moves from northern New Brunswick now to between the Nova Scotia and New Brunswick border, I guess that will remain to be seen," he told CBC's Maritime Noon.
While the price of cans of Moosehead won't be changing for the other Maritime provinces, Grant said there are a lot of things that need to be studied during the promotion period.
"Obviously we need to wait and see how the market plays out and how consumers react to this promotion, but I certainly think there's a lot of folks that are watching this very, very closely."
'Significant amount of risk'
Grant added that while consumers will no doubt enjoy the lower costs at the register until Sept. 4, the promotion could hurt business.
"There's certainly a significant amount of risk in this based on reduced profitability, for both the province as well as a local, independent New Brunswick brewer like Moosehead," he said.
If beer sales aren't up because of this price reduction, Grant said Moosehead could be in trouble.
With files from Maritime Noon