The removal of U.S. products from liquor store shelves in the province earlier this year contributed to a 6.2 per cent drop in net earnings for NLC compared to the previous year.
From California wines to Jack Daniel’s whiskey, American products were removed from NLC shelves last February after U.S. President Donald Trump triggered a trade war with Canada.
Newfoundland and Labrador was one of a number of provinces that pulled U.S products from liquor stores after Trump started on a relentless series of tariffs and economic threats against Canada and Canadian products.
NLC say net earnings for the second quarter were $56.3 million, a drop of $3.7 million.
While the removal of higher-margin U.S. products contributed to the drop in revenue, NLC says declines in beer commission revenue also played a part.
NLC President and CEO Bruce Keating says they remain cautiously optimistic about the outlook for the balance of the year with cannabis showing steady, positive momentum.
NLC paid $58 million to the provincial government in the second quarter – $2 million less than the second quarter of the previous fiscal year.
Meanwhile, Keating says he’s watching what’s happening in nearby Nova Scotia.
Premier Tim Houston last week announced plans to sell off its stock of U.S. booze and donate the proceeds to charity.
Bruce Keating (file photo)
Keating says NLC is continuing to hold approximately $3.2 million in inventory, and he’s aware that the best before dates are drawing nigh on some product.
Some jurisdictions like PEI and Quebec are not selling any U.S. product, while provinces like Alberta and Saskatchewan are back to “normal operations.”
