The Alberta Liquor Store Association (ALSA) says it’s begun to feel the effects of fewer customers.
“It’s still too soon to determine whether we can directly attribute a slowdown to the new tax hike because sales had already slowed from the recession,” chairwoman Allison Byrne told Canwest News Service after the group’s annual general meeting.
“But our retailers have noticed that there are far more customer complaints – all directed at the government, of course.
“And so we anticipate that there will be a decrease in the volume of liquor sold in the province this year, and we anticipate there will be a trade down from high-end brands to low-end brands as customers look for more value.”
Albertans now pay at least $1.30 more for a 12-pack of beer, $2.85 more for a 750-millilitre bottle of spirits and $1 more on a bottle of wine.
The impact of these new taxes may be widespread, according to ALSA.
“Many of our members are one-store operations who are trying to talk to their customers and explain what’s happening,” Byrne said.
“A number of them are concerned that consumption will go down, that they’ll even lose their customers with this increase.
“We’re concerned about where liquor sales in this province are going because the liquor industry affects a lot of other industries. It really does affect our agricultural and manufacturing industries, and if we continue to see a decline, jobs may be lost.”
This year marked the first provincial markup on liquor since 2002. However, retailers have had to raise prices over the years to compensate for rising warehousing and distribution costs.
The tax hike has stolen Alberta’s competitive edge over its bordering provinces, B.C. and Saskatchewan, she said.
“There used to be customers driving in from other provinces because our liquor was cheaper, and we’re starting to see them decline, as they’re no longer seeing the value in making the trip,” Byrne said.