Nova Scotia and New Brunswick Reach New Beer Accord

Negotiations between the Nova Scotia Liquor Corporation (NSLC) and Alcool NB Liquor (ANBL) regarding the importation of beer have come to a successful conclusion.

A number of agreements have been struck which lay the groundwork for both Sleeman Breweries and Molson Canada to distribute their beer in both provinces under a local brewer status.

"This is a win-win situation for both the provinces and breweries," said Dana Clendenning, president and CEO of Alcool NB Liquor. "Sleeman can co-distribute with Molson in New Brunswick, and Molson will be able to distribute in Nova Scotia, without incurring the cost of service fee. This results in a significant reduction in distribution costs for both breweries and levels the playing field across the provinces."

Section 2B of the New Brunswick Policy on Interprovincial Beer Transfers has been amended to permit beer produced by Sleeman Breweries in Nova Scotia to be warehoused and distributed by other breweries in New Brunswick.

Molson will now have access to Nova Scotia and can self-deliver or deliver through the NSLC. This means that Molson will receive equal treatment in Nova Scotia with other Maritime industrial breweries.

Several other agreements were reached including a new policy on microbreweries. "Nova Scotia will treat New Brunswick microbreweries the same way we treat Nova Scotia microbreweries, and vice versa," said Bret Mitchell, NSLC president and CEO. "All Maritime microbreweries will benefit from significantly lower distribution costs and enhanced market access as a result of this new policy."

The two provinces agree to participate in future discussions with a view toward achieving regional free trade for beer. This would likely lead to the official signing of a comprehensive Maritime Beer Accord.

The Nova Scotia Liquor Corporation, the fourth-largest retailer of beverage alcohol in Canada and the largest single banner retail business in Nova Scotia, generates more than a half a billion dollars of revenue a year returning almost $200 million profit annually to the province. It employs more than 1,400 Nova Scotians, offering 3,000 products from around the globe through 107 retail stores, 2,100 licensees and 54 agency stores.