Liquor Mart union greets expanded private sales with skepticism

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This article was published 26/05/2022 (945 days ago), so information in it may no longer be current.

Revenue from liquor sales could be drained from government coffers if legislation to expand private retail sales becomes law, the union representing Liquor Mart workers warns.

Manitoba Government and General Employees’ Union president Kyle Ross said the province needs to back up its claims Bill 42 would not substantially impact Manitoba Liquor & Lotteries Corp. revenue or lead to job losses at Liquor Marts.

“The figures from yesterday’s announcement just don’t add up. It stretches believability to suggest that if you add 130 additional locations in Winnipeg to purchase alcohol that it won’t affect the bottom line of the 36 Liquor Marts that are already in existence,” Ross said Friday.

“Those profits go somewhere, and the best place for that profit is invested in schools and hospitals.”

On Thursday, Scott Fielding, minister responsible for MLL, introduced legislation to allow private wine stores, beer vendors and rural liquor stores to sell the full range of products currently available at Liquor Marts.

Bill 42 would also set up the framework for grocery, convenience or other stores to sell alcohol as part of a five-year pilot project. Provincial revenue from MLL is not expected to take a substantial hit if the proposed legislation is passed, Fielding said.

He also offered a guarantee to workers at Liquor Marts all 63 stores would remain open and jobs would not be lost with the changes.

On Thursday, Fielding sent a letter to the MGEU stating proposed changes will “have no impact on the operation of Liquor Mart stores that are owned by (MLL).”

The letter goes on to say the Crown corporation’s strategic plan does not include any store closures or impacts to staffing, and the bill does not change that direction.

Ross said the correspondence has not alleviated the concerns of workers.

“With the strategic plan, I’m sure they look forward, but these profits are going to go and then everything will change,” Ross said.

MLL officials estimate market share for Liquor Marts could shift a few percentage points if Bill 42 passes and beer vendors and specialty wine shops begin to sell products available at Liquor Marts.

The Crown corporation has not increased its retail space for a number of years, and had no plans to add more stores, despite a growing population and increase in demand.

It’s also expected profit margins on some products will shrink, but the corporation is hoping to achieve cost savings in other areas, including transportation, if the bill becomes law.

Sales are also predicted to grow as new retail locations come online, with Liquor Mart business holding steady, according to MLL officials. About 70 per cent of liquor products sold in Manitoba are already purchased at private vendors.

Ross said the province has yet to make a strong case for expanding private liquor sales. Instead of pilfering sales from the Crown corporation, more Liquor Mart Express locations could be rolled out, if customer convenience is a concern.

“We see that the system is balanced and delivers revenue and benefits for Manitobans,” he said. “We certainly don’t want to see corporations and big-box grocery retailers swooping in.”

According to Manitoba Liquor & Lotteries, liquor operations provided more than $320 million in revenue to the provincial government in the 2020-21 fiscal year.

danielle.dasilva@freepress.mb.ca