Beer prices increase in New Brunswick

The price of beer has jumped in New Brunswick.

NB Liquor quietly increased the price of a 12-pack of domestic canned and bottled beer by50 cents on Monday, including its discount brands.

"We offer the suppliers a chance to raise their price, but we don't collect any extra markup due to that, it's more to cover their costs," said spokespersonMarcelle Saulnier.

The price hike comesdespite another year of poor beer sales in the provincea problem caused,in part,by already high prices.

For example, NB Liquor's annual reports show that over the past sixyears,the price it charges for bottled, canned and kegged beer has jumped an average of 11.7 per centper litre, not including this week's jump.

Meanwhile,the numbers of litres sold in the province has dropped by 8.2 per cent during the same period.

• Interactive: Alcohol sales

Just last month, the Crown corporation's new CEO Brian Harriman,had said thereare ways to bring in more revenue without raising prices on booze.

Harriman, who was hired away fromDiageo, a global company that sells many well-known brands, such as Guinness and Captain Morgan, told CBC News he thought NB Liquorcouldbring in more sales through other means.

I think we can through product mix We can help consumers learn and understand more about spirits, more about wine, and find ways to stabilize the beer category, and get a bigger product mix in the basket," said Harriman, the first head of the Crown corporation hired through a non-political, outside recruitment process.

"There's probably a bigger opportunity to do it without necessarily driving price increases."

Three years ago, in his first budget, Finance Minister Blaine Higgs called on NB Liquor to improve its profit margin.

"We're relying on their creativity and ingenuity to do that," he had said.

But beer sales have plunged 12,000 litres a day in New Brunswicksince then.