Wine, spirits prices drop
Northern News Services
Friday, September 18, 2015
SOMBA K'E/YELLOWKNIFE
Alcohol consumers may have noticed a cost drop on spirits and wines last week as the two liquor stores in Yellowknife switched pricing models.
Peter Maher, GNWT liquor control commissioner, said the change came into effect Sept. 8 and will mean that - like the rest of the liquor stores in the Northwest Territories - the government or liquor commission now owns the liquor until it's sold to the customer. The store operator is then paid a commission as a percentage of every litre of alcohol sold.
Since 2001, the two liquor stores in the city ran on a private store model where the store operators owned all liquor and set the prices. This depended upon the store owners purchasing the alcohol inventory from the government and reselling it depending on what the market could bear.
"The big change was with spirits," Maher said. "Most spirits changed eight to 10 per cent and beer remained relatively (the same)."
Maher said the benefit of the consignment model is that it helps the government with its point of sales, inventory and accounting system for the sales of the seven liquor stores in the NWT.
Maher said a request for proposal went out to run both the Liquor Store on 49 Street and the Liquor Shop on Borden Drive under the new consignment model in January 2013 and the winning bidder was Ed Eggenberger who began the new contract this past Monday. Prior to that, Eggenberger had a 10-year contract with the Liquor Store as did Perry Smith of the Liquor Shop.
"A 26er would drop by about five dollars, which is significant, absolutely," said Eggengerger.
