Why red tape makes it impractical for N.S. bar to bring in wine from Ontario vineyard

Situation faced by Halifax's Bar Stillwell is a real-world example of interprovincial trade barriers

Image | Bar Stillwell

Caption: Bar Stillwell in Halifax, shown in this photo, would like to bring in wine from an Ontario vineyard, but says the requirement to go through the NSLC comes with a lot of downside. (Josh Fee Photography)

Andrew Connell wants to bring in an Ontario wine to the Halifax bar he co-owns, but he says the legislated process makes it impractical.
To get wine from Rosewood Estates Winery in the Niagara region, Connell can't contact the vineyard directly. Instead, he has to do a special order through the NSLC.
"Why there needs to be a middleman in that scenario, I'm not really sure, especially one that's going to increase the cost of that product and damage our margins," said the Bar Stillwell co-owner.
The general manager of the Ontario vineyard that Connell wants to get wine from is equally bothered by the process. William Roman said they would have to discount their products substantially to sell it to the NSLC, who would in turn mark it up and then sell it to Stillwell.
"The whole chain doesn't make any sense," Roman told CBC's Hanomansing Tonight. "The only people who are benefiting is the actual government board."

Media Video | Hanomansing Tonight : This Canadian business owner wants interprovincial trade barriers lifted | Hanomansing Tonight

Caption: William Roman, general manager of Rosewood Estates Winery & Meadery in Ontario, is calling for interprovincial trade barriers to be lifted in the wake of U.S. tariffs.

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The situation is an example of how interprovincial trade barriers play out in real life.
"We should be able to buy and sell products from Ontario in exactly the same way that we do with products in Nova Scotia," said Connell.

Why some alcohol purchases must go through the NSLC

The reason Stillwell has to follow this process is because of the Liquor Control Act, which governs the sale of alcohol in Nova Scotia.
Any changes that would allow producers from other provinces to ship directly to Nova Scotia licensees such as Stillwell would require legislative, regulatory and policy changes.
Last month, Nova Scotia Premier Tim Houston introduced a bill aimed at reducing interprovincial trade barriers. To become a reality, other provinces or territories would need to adopt similar legislation.
Houston said earlier this month that Ontario is the province most supportive of Nova Scotia's idea.

Image | Tim Houston

Caption: Premier Tim Houston has introduced legislation that aims to reduce interprovincial trade barriers. (Robert Short/CBC)

In a statement, Nova Scotia Finance Department spokesperson Heather Fairbairn said importing and selling alcohol in Nova Scotia needs to be managed safely and responsibly. She said the province is committed to making interprovincial trade easier.
"Implementation details would be worked out in regulations once reciprocal trade agreements with other provinces are in place," she wrote.
Stillwell is predominantly a beer bar showcasing local beer, but it also brings in beer from other provinces and other countries.

Maritime Beer Accord

Under something known as the Maritime Beer Accord, Stillwell can buy beer directly from microbreweries in New Brunswick and P.E.I.
However, to bring in Canadian beer from non-Maritime provinces, Stillwell must go through the NSLC. By having a middleman, it inflates the costs consumers pay at the tap, Connell said.
"I think customers can see that they're not getting the same value from those beers and we certainly aren't making the same margin, even the necessary margin, that we need to operate," said Connell.
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