The Honourable Tom Osborne, Minister Responsible for the Newfoundland and Labrador Liquor Corporation (NLC), along with Bruce Keating, CEO of the NLC, announced today a number of initiatives that will support businesses through the COVID-19 pandemic and set the stage for future economic recovery.
In support of licensees, which includes lounges, bars and restaurants, effective immediately the NLC will waive liquor license fees for the 2020-21 fiscal year. Also, the NLC will work with the licensee community to return general list product in an effort to help with working capital. The NLC is also temporarily waiving warehousing service fees for microbrewers with annual production of 1,000 hectoliters or less for those who use the NLC’s distribution network.
To further assist the province’s beverage industry, the NLC has been approved to implement a wholesale pricing discount for licensees, by providing a five per cent discount for wines and spirits, and ready to drink beverages.
Additionally, government has approved an increase in product commission discounts for craft breweries, wineries, distilleries and cideries producing 1,000 hectoliters or less to 55 per cent for non-NLC distributed products.
Government has also approved a temporary regulatory change to permit ferment-on premise operations (U-Brew) to bottle beverages for their customers that started batches of wine or beer prior to the COVID-19 health restrictions.
The NLC will further support businesses through its distribution and marketing capabilities by listing products of local microbreweries not already supported in this way.
The NLC also recently announced upgrades in its manufacturing facility, Rock Spirits, to install a canning line. These upgrades will support the NLC’s ability to enter into commercial agreements with local craft producers to can product for those who otherwise would not have this opportunity.
Minister Osborne has also committed to bringing legislation forward that will allow for the temporary direct sale of alcohol to customers by restaurants and other licensed establishments that sell prepared meals for takeout/curbside pick-up and delivery. This legislation will also include changes to allow brewers, wineries and distilleries the ability to offer home delivery.
By reducing costs, improving working capital, expanding access to the market through the NLC’s distribution and marketing capability, and making it easier for these establishments to sell alcohol directly to customers through pick-up and delivery services, the Provincial Government in partnership with the NLC is making strides toward economic recovery.
Quotes
“We appreciate the stress that this global pandemic is having on businesses. We have heard from this creative and tenacious sector of the business community and as a government we want to assure them that we listened. We respect their vital contributions to the province’s culture and economy, and the measures announced today are a direct response to what they have asked for. We are all in this together, and the Provincial Government is committed to supporting them as we work through economic recovery together.”
Honourable Tom Osborne
Minister of Finance and President of Treasury Board
Minister Responsible for the Newfoundland and Labrador Liquor Corporation
“This is a uniquely challenging time for many of our partners at NLC, and none more so than for our licensee community and microbrewers. Throughout the crisis, NLC has worked to support the province in its broader efforts through the highest safety measures in our retail locations, through supporting our small business partners like our Liquor Express outlets, and by redirecting our organization to produce hand sanitizer at no cost to the health care system and other first responders. The measures being announced today are very tangible ways we are once again stepping up and helping our licensee community, including lounges, restaurants and microbrewers weather the current storm – by reducing costs, improving working capital, expanding access to the market through NLC’s distribution and marketing capability, and making it easier for these establishments to sell alcohol directly to customers through pick-up and delivery services. We appreciate the immense difficulties they currently face, and we are standing side-by-side with them.
Bruce Keating
President and CEO
Newfoundland and Labrador Liquor Corporation
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Media contacts
Chrysta Collins
Finance
709-730-1568
chrystacollins@gov.nl.ca
Darrell Smith
Newfoundland and Labrador Liquor Corporation
709-724-1165
darrell.smith@nlliquor.com