NB Liquor beer sales down $600K in first quarter

New Brunswickers are drinking more alcohol, but less beer, according to the latest financial results from NB Liquor.

The unaudited results for thefirst quarter show an overalluptickof 1.6 per cent over the same period last year, with total sales of $101.9 million.

But beer sales dropped by $600,000, representing a one per cent decrease during the period that ended June 26,the figures show.

The findings come on the heels of a New Brunswick judge's recent decision that could further erode beer sales in the province.

Judge Ronald LeBlancstruck down the province's prohibitions on moving alcohol across borders as unconstitutional, andexonerated retireeGerard Comeau, of Tracadie,who had gone above the limit.

New Brunswick's laws are designed to protect its own provincially run liquor stores against cheaper products from neighbouring Quebec.

The provincial governmentis appealing LeBlanc'srulingand insists any interprovincialtrade deal must exclude alcoholfor now.

In recent weeks, NB Liquor has beenoffering a beer promotion,selling60 cansfor $75, instead of $112, in a bidto compete against low prices in Quebec. The beer blitz has attracted customers from Nova Scotia.

Wine, spirit sales up

Wine and spirit sales for NB Liquor were both up during the first quarterat$1.1 million (5.4 per cent) and $600,000 (2.9 per cent) respectively, while the "other" beverages category grew by $500,000 (6.2 per cent).

Total sales for the year ending on March 27 were up by $16.5 million, reaching $410.4 million, the newly-released audited results show.

"The total volume for the year was 57.6 million litres,"president and CEO Brian Harriman said in a statement.

"Both the number of transactions and the average basket size saw slight increases from last year, and there was growth in every product category," he said.

Net earnings of the provincialCrown corporationincreased by $6.3 million to $171.6 million.

Section 134 of the New Brunswick Liquor Control Actstatespeoplein New Brunswick may only have liquor purchased from the New Brunswick Liquor Corporation, except for limits set out in regulations.

Those regulations limited the importation of alcohol for personal use to one bottle ofliquor or wine, or 12 pints of beer.

In his decision, LeBlanccited section 121 of theConstitution Act,whichstates: "All articles of the growth, produce or manufacture of any of the provinces shall, and from and after theUnion, be admitted free into each of the other provinces."

The federal government is pushinghard to include an ambitious liberalization ofalcohol laws ina free trade deal expected to be ratified by theprovinces and territories next year,despite provincial intransigence, the country's economic development minister has said.

The premiers hashed out an agreement-in-principleduring their talks in Yukon last month,NavdeepBainshas said."I am very confident, and I'm very hopeful, that we can ratify this agreement next year," he toldDavid Cochrane on CBC Radio'sThe House.

NB Liquor has 44 corporate retail outlets, 84 private agency store outlets and 18 grocery stores selling wine across the province.