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Residents agree: liquor too expensive in Yellowknife
But set prices may mean reduced selection

Kira Curtis
Northern News Services
Published Wednesday, December 22, 2010

SOMBA K'E/YELLOWKNIFE - The NWT Liquor Commission sent out 7,200 surveys earlier this year to help determine what to do with the two liquor stores in the city as their contracts near their 2012 expiration date.

NNSL photo/graphic

Catherine Colas stocks the beer cooler at the downtown liquor store. Manager Ed Eggenberger boasts a large and diverse selection that he fears may change if his contract is not renewed in 2012. - Kira Curtis/NNSL photo

The survey asked residents if they were satisfied with the service of liquor stores in the city based on price, convenience, service and selection.

Of the 7,200 sent out, 1,157 were returned for tallying. Not surprisingly to Kyle Reid, general manager of the NWT Liquor Commission, 64 per cent of people surveyed said they were dissatisfied with the price of alcohol in the city.

Both of Yellowknife's two liquor stores are on contract with the territory to buy liquor at wholesale prices and set their own retail prices, while outside of the city, consignment stores sell government-owned liquor for a set price and make a commission off of it.

The Liquor Commission is taking the information from the survey and is planning to issue a report of proposals to replace the current liquor store contracts. It is expected that a request will be made for one consignment and one private liquor store to replace the two private ones.

But Ed Eggenberger, manager of the downtown liquor store, thinks that will hinder the selection people have to choose from.

"I really think that's what's going to happen," he said from his office in the downtown liquor store. "There will be two stores: one will have little selection and one will have really good selection."

Eggenberger explained that having a consignment store will offer cheaper prices on liquor but the inventory will be limited to what the store is allowed to order in.

"Right now I have a big, big selection of wines," he said, estimating that if his store became a consignment store he would lose around 50 per cent of his choice selection.

As the expiration date approaches, both Yellowknife liquor stores will have to create a business proposal to keep their stores running the same.

"I'm not guaranteed another store," Eggenberger said. He believes other businesses that currently do not sell alcohol will be able to apply with a proposal to replace one of the current Yellowknife liquor stores.

For Eggenberger, that is a cause for some concern and means a lot more work he has to put in to his proposal.

The survey also showed that 71 per cent of people contacted said they purchased liquor outside the territory.

Eggenberger thinks this has more to do with the tax the territory puts on liquor than the difference in price between private and consignment stores.

He points out that in Alberta the provincial tax per litre of spirits is $13.30, while in the NWT it jumps to $28.59 per litre.

Eggenberger believes that if the territory lowered the sin tax on liquor, it would keep more money circulating within the territory.

But Reid doesn't think people intentionally go out of territory for booze alone, but pick it up while out of town for other reasons.

"We are a very mobile people anyways," Reid said.

One thing the survey did show was that an overwhelming 90 per cent of people were happy with the selection, service and convenience of Yk's liquor stores.

"I was surprised that rated so high," Reid said.

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