The Newfoundland and Labrador Liquor Corporation is reporting a drop in net earnings for the first quarter of its 2025-26 fiscal year.

Earnings dropped by $1.8 million, or 3.7 per cent compared with same period the year before.

A 12.4 per cent drop in beer commissions thanks to lower domestic beer sales, contributed to the decrease in earnings.

Despite that, beverage alcohol sales were up by 1.2 per cent over the previous year, with the ready-to-drink category leading the way at 5.3 per cent.

Cannabis sales through licensed cannabis retailers totaled $29.9 million in the first quarter of this year. That’s an increase of 23.5 per cent over the same time last year.

Rock Spirits meanwhile produced 51,000 cases of spirits – a drop of 26 per cent mainly due to timing of production.

The corporation says customers have been moving to alternatives after U.S. products were removed from its shelves thanks to the ongoing trade war.

NLC says wine drinkers in particular have been moving to product from other countries, with the biggest growth in sales related to product from Argentina, Australia, Chile, Canada and Italy.