NSLC slashes markup to promote local spirits

In an effort to repeat the explosive growth of local breweries and wineries, the Nova Scotia Liquor Corporation says it will slash its markup on locally produced distilled spirits.

The markup will be reduced from 160 per cent to between 60 and 80 per cent per bottle. The markup will drop by another 10 per cent if distillers use Nova Scotia agricultural products.

"It enables them to put products on our shelves at a price that is palatable to consumers," says NSLC spokesperson Heather MacDougall.

The provincial Crown corporation is also cutting the annual license fee from $2,000 to $500.

The preferred pricing policy, as it is called, was announced Friday in Lunenburg at the Ironworks Distillery, one of four distilleries in Nova Scotia. 

Currently the liqueurs, vodka and rum produced at an old blacksmith shop are sold on the Ironworks premises or at weekend farm markets.

"We would be delighted to be in the NSLC. It will increase our reach where we are not represented," says Pierre Guevremont of Ironworks.

He predicts sales will increase by 25 per cent.

'Pretty quick turnaround'

For several years his company has been stockpiling and aging rum for the day it would be sold at government liquor stores. That day has come sooner than expected. 

Guevremont says distillers wrote to Premier Stephen McNeil in February asking to receive the same discounted markup given to craft brewers and wineries.

"This was a pretty quick turnaround."

Nova Scotia Finance Minister Diana Whalen says the government was happy to oblige.

"We should be looking at distilleries in the same light as craft breweries and wineries," she says. "These businesses make a real impact in these communities."

The markups may not result in lower prices. Distillers say the better margins will allow them to compete with international giants with much lower costs of production.

"This will give us a fighting chance to get our products on the shelves," says Lauchie MacLean of Glenora Distillery.

MacLean is also president of the recently formed NS Distillers Association. He predicts within a few years there will be a dozen distilleries operating in Nova Scotia.