Saskatchewan liquor stores expect U.S. alcohol sales to shrink

The store manager at the Sherwood Co-op Quance Liquor Store expects its American alcohol section to continue to shrink, with a new provincial retaliation surcharge taking effect after Labour Day.

New retaliation measures implemented by the provincial government will put a 50 per cent surcharge on United States alcohol products starting Sept. 8.

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Saskatchewan hit back against the U.S. after it imposed a 50 per cent tariff on Canadian alcohol last week.

Bogdan Anghel said some customers are buying American alcohol before the price increase takes effect.

“We had a customer that bought two bottles of bourbon just because he was concerned about the prices going up,” he said. “There is concern.”

American products like Jim Beam and Jack Daniels will face a 50 per cent retaliatory fee starting Sept. 8. (Gillian Massie/ 980 CJME)

While some customers are still searching for U.S. products, the store manager said American alcohol sales have dried up at the store over the past year.

Anghel said that resulted in 60 California wines being discontinued.

“We already significantly shrunk this section,” he said. “We are thinking to shrink it even more.”

The Saskatchewan Liquor and Gaming Authority said U.S. alcohol sales dropped 40 per cent in the last fiscal year.

Anghel said he expects American alcohol sales will continue to drop when the surcharge takes effect.

“We’re looking at Canada as the main country to expand,” he said. “There is lots of demand, so why not?”

Troy Verboom, the CEO of Sherwood Co-op, is glad American booze will remain on Saskatchewan shelves. (Gillian Massie/ 980 CJME)

Troy Verboom, the CEO of Sherwood Co-op, said he’s glad the province didn’t remove U.S. alcohol from the shelves.

“I think it’s important for Sherwood Co-op to give our consumers a choice,” he said. “That’s what we’re still allowed to do. (I) definitely appreciate and support the retaliatory tariff.”

Regina liquor store evaluating order rules for customers

Susan Babey, a co-owner and managing partner with Metro Liquor Acre 21, said the new retaliation fee could change how the store fills American orders.

The store’s policy is to always order a product the customer wants and then put the remaining bottles in the case on the shelf.

“We never had any volume requirements for those requests … however, we might have to revisit that policy for U.S. products,” she said. “If the price goes up and it becomes more cost prohibitive to sell the rest of those bottles, a customer may be required to take the case on those products.”

Babey said there is still a market for American alcohol — it’s just not as big anymore.

“With this further announcement provincially, I would suspect there would be a further decrease in the interest of our customers,” she said.

Babey said she’s glad American alcohol is still on the shelf so customers can choose where their dollars go.