Beer Prices In New Brunswick

As of April 2024, a case of 24 cans of domestic beer in New Brunswick is expected to cost $45.99, following a $2 price increase. This is a 4.5% increase, with $1.68 going to the provincial government, a six-cent increase in federal excise tax, and a 26-cent HST increase. The price of beer in New Brunswick has broader policy implications, as consumers respond to public policy incentives. When New Brunswick beer prices were higher than in Quebec, many New Brunswick consumers living near the border would cross to purchase cheaper beer. However, this practice is illegal, as consumers are only allowed to purchase the equivalent of 12 pints of beer from outside the province.

Beer prices in New Brunswick

The price of beer in New Brunswick has been a topic of discussion and debate in recent years, with various factors influencing the cost. In this article, we will explore the dynamics of beer prices in the province and how they impact consumers and the industry.

Provincial Taxes and Price Changes

New Brunswick has seen fluctuations in beer prices due to changes in provincial taxes and pricing strategies. In April 2024, the cost of a case of 24 beer increased by $2, with a combination of federal excise tax increases and provincial price hikes. This change brought the price of a case of domestic beer to $45.99, a 4.5% increase from the previous price of $43.99. The New Brunswick Liquor corporation attributed this adjustment to factors such as provincial environmental rules and regular pricing updates.

Cross-Border Shopping

The variation in beer prices between New Brunswick and neighbouring provinces and states has led to cross-border shopping practices. Historically, New Brunswick residents living near Quebec would cross the border to purchase less expensive beer due to lower taxes in Quebec. This trend prompted a Tracadie resident, Gérard Comeau, to challenge the provincial law restricting the amount of beer that could be brought into New Brunswick from other provinces. Comeau's legal battle gained traction, highlighting consumers' preferences for more affordable options and their opposition to what they perceived as overpriced beer from government-owned monopolies.

Sales and Promotions

In response to consumer demands and market dynamics, New Brunswick Liquor has implemented sales and promotions to boost beer sales. During the summer of 2022, they introduced a promotion where customers could mix and match four 15-can packs of popular beer brands for $74.99 (tax and can deposit included). This promotion led to a significant increase in sales, particularly near provincial borders, as residents from other provinces took advantage of the lower prices in New Brunswick.

Industry and Economic Impact

The beer industry in New Brunswick is closely linked to economic growth and tax policies. Lower beer prices have been associated with increased sales, demonstrating the impact of price incentives on consumer behaviour. However, high taxes on businesses, investments, and wage earnings can deter investment and affect the province's economic outlook. Policymakers must consider the delicate balance between taxation and economic development, learning from successful low-tax models in other jurisdictions.

In conclusion, beer prices in New Brunswick are influenced by a combination of factors, including taxation, cross-border competition, and promotional strategies. These dynamics have implications for consumers, the beer industry, and the province's overall economic landscape. Understanding these factors provides insight into the complex relationship between beer prices and public policy in New Brunswick.

Beer tax increases

In 2018, New Brunswick's liquor monopoly, the ANBL, raised beer taxes, despite opposition from Beer Canada, the national trade association that advocates for Canadian brewers. At the time, a case of 24 cans of beer was priced at $35.99, with the tax making up 62% of the price.

In 2024, New Brunswick's beer prices rose again, with a case of 24 cans of domestic beer increasing from $43.99 to $45.99. This increase was due to a combination of rising federal excise taxes and price increases imposed by the province. Specifically, the tax increase comprised a six-cent hike in federal excise taxes, a 26-cent increase in HST, and a $1.68 rise in provincial charges.

These tax hikes have sparked debates about their potential impact on consumers and the industry. Some argue that they place an unnecessary burden on consumers, with federal Conservatives urging the abandonment of such increases. Additionally, concerns have been raised about the potential negative effects on jobs in the industry.

On the other hand, proponents of the tax increases argue that they are necessary to generate additional revenue for the province. For instance, N.B. Liquor, the province's most profitable Crown corporation, aims to generate an extra $12.3 million in revenue through these price hikes.

The impact of beer tax increases on consumer behaviour has been observed in New Brunswick. When beer prices were lowered in the past, sales increased, including among residents of neighbouring provinces with higher prices, such as Nova Scotia. Conversely, when prices rise, consumers may be incentivized to purchase beer from lower-priced provinces or countries. This was evident in the past when New Brunswick consumers living near Quebec would cross the border to purchase less expensive beer, despite legal restrictions on the amount of beer they could bring back.

The debate around beer taxes in New Brunswick highlights the complex interplay between taxation, consumer behaviour, industry dynamics, and government revenue. While tax increases may provide additional funds for the province, they also risk driving consumers to seek more affordable options, potentially impacting local businesses and the overall economy.

Beer prices in Quebec

In Quebec, beer prices are considerably cheaper than in New Brunswick because taxes are lower. This has led to many New Brunswick residents crossing the border to purchase beer in Quebec, despite breaking the law by bringing more than 12 pints (around 20 bottles) of beer back into the province.

While I cannot find a definitive price for a case of beer in Quebec, I can provide some examples of beer prices in the province. The prices of beer in Quebec are as follows:

• 12 cans for $25.99
• 12 cans for $23.99
• 12 cans for $24.99
• 24 cans for $26.99
• 24 bottles for $29.35
• 24 cans for $33.48
• 12 bottles for $25.99
• 24 bottles for $37.99
• 24 cans for $34.99
• 12 cans for $24.99

In contrast, a case of 24 beer in New Brunswick currently costs $43.99 and is expected to increase to $45.99 due to a tax increase. This price difference has had an impact on sales in New Brunswick, with residents opting to purchase beer in Quebec or from lower-priced promotions within New Brunswick.

Beer prices in Nova Scotia

As of June 2024, the price of a case of 24 beers in Nova Scotia is $43.98, which is about $8 more than the price in New Brunswick.

In June 2017, Nova Scotia's beer prices were higher than New Brunswick's, with a 24-pack of domestic beer costing $42.99 in Nova Scotia compared to $35.99 in New Brunswick. This price difference led to customers flowing across the border from Amherst, NS, to the liquor store in Sackville, NB.

In May 2017, NB Liquor dropped the prices of some domestic beers, including popular brands like Alpine, Budweiser, Bud Light, Coors Light, and Molson Canadian. The new prices were permanently lowered to $35.99 from $42.99, resulting in a $1.50 price per can, down from $1.79.

This price reduction strategy by NB Liquor had a significant impact on sales and encouraged consumers from neighbouring provinces, like Nova Scotia, to purchase beer in New Brunswick.

In response to the price drop in New Brunswick, a spokesperson for the Nova Scotia Liquor Corporation, Jennifer Gray, stated that they were "still weighing their options" regarding pricing. It is unclear if Nova Scotia followed suit with price reductions, but as of June 2024, their beer prices remain higher than those in New Brunswick.

It is worth noting that the price of beer in both provinces includes various taxes, such as provincial charges, federal excise taxes, and HST. These taxes contribute to the overall cost of beer and can vary between provinces, influencing the final price consumers pay.

Beer prices in Canada

The price of beer in Canada can differ depending on the province, with Quebec offering the cheapest beer in the country, while the Northwest Territories is the most expensive. In Quebec, a 24-pack of beer can cost around $27, whereas in Downtown Yellowknife, a case of bottles is $56.65. In Ontario and British Columbia, beer prices are also relatively high, despite differing regulatory environments.

The variation in beer prices across Canada can be attributed to factors such as taxation, government policies, and the cost of living. For example, the New Brunswick government's increase in beer prices contradicts their opposition to rising carbon charges, demonstrating a complex interplay of factors influencing alcohol pricing.

Additionally, beer prices can be influenced by promotional activities and cross-border shopping. Lower beer prices in New Brunswick have resulted in increased sales and impacted sales in neighbouring provinces, as consumers seek more affordable options. This highlights the dynamic nature of beer pricing and its impact on consumer behaviour.

Overall, the cost of a case of beer in Canada generally falls between $40 and $47, but it can vary significantly depending on the province and other factors.

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