A study of Yellowknife retail liquor sales could mean big business for a Northern city already known for high alcohol consumption. For almost 10 years, the Eggenberger family has run the city's lone retail liquor store. Is it time to share the wealth?
Kirsten Murphy
Northern News Services
Yellowknife (Dec 08/00) - Yellowknife entrepreneurs stand to profit from a Liquor Commission study if the report finds the city is ready for additional liquor outlets.
Simply put, a contracted consultant will spend the next four to five months determining if Yellowknifers meet the required drinking and spending habits to warrant additional outlets. Public input -- both for and against expansion -- will be sought.
"What we're doing is finding out what options are available," said Margaret Melhorn, deputy minister of the department of finance.
The move has the business community's attention.
"We're definitely interested," said Edward Eggenberger. Eggenberger manages the city's lone retail liquor outlet on 49th St. His contract is up for renewal August 2001.
If the study recommends more liquor outlets, Eggenberger will be first in line to apply for a second contract -- with recommendations of his own. Yellowknife Chamber of Commerce executive director Ellie Sasseville didn't know of specific business people interested in opening shop. However, she said potential applicants would likely keep their cards to their chest.
Eggenberger readily admitted to monopolizing the city's existing retail liquor business. He insisted, though, the government reaps substantially higher profits from his sales. The liquor commission also controls the prices and hours the store runs.
"Ours is a (private) business and it's profitable, but it's not the money maker people think it is."
Study guidelines include comparing Yellowknife's retail liquor sales with similar operations in B.C. and Alberta, provinces with more flexible retail liquor distribution regulations.
The $10 million in gross sales (1999) from Eggenberger's liquor store will act as a economic benchmark. Potential "new" outlets include liquor outlets in grocery stores and privately run cold beer-wine stores that could be open seven-days per week. Extended business hours will also be considered.
The study's consultant will be hired this month. The report's recommendations will be released this spring.
Ron Courtoreille, NWT Liquor Commission general manager, could not say where or how many new outlets might arise. He confirmed Frame Lake South has come up in conversation. "We certainly wouldn't put two stores side by side," he said. Courtoreille said public interest and the town's growing population, in part, prompted the study.
Clearly reluctant to call the liquor business "lucrative", Courtoreille acknowledged the millions of dollars NWT liquor sales generates in the territory each year.
"Eight stores may be an extreme example for a city this size but that's what one city (the same size) in Alberta has."
A local A.A. representative vehemently opposes new liquor outlets.
"It's like going to hell and putting more logs on the fire," said Jim (last name withheld by request.)
"With just one liquor store and so many bars, alcoholism is already rampant. There's going to be more crime and more panhandling."
Jim said money would be better spent on detox and treatment centres. RCMP Staff Sgt. Terry Scott declined to make a connection between increasing alcohol-related crimes and additional liquor outlets.
"Yes alcohol is a problem here but it doesn't make a difference whether you have one store or a 100 stores, you'll still have problems."
