Net earnings by the Newfoundland and Labrador Liquor Corporation were down about 6 per cent in the 3rd quarter of its fiscal year, which ended January 3. That’s a decrease of $3.8-million from the same quarter a year ago.

The Crown corporation says the decrease in earnings is due to higher operating and administrative expenses resulting from higher cannabis commissions, and a decline in beer commission revenue.

Overall, beverage alcohol sales for Q3 were $90-million, a decrease of 0.4 per cent over the prior year. Wine decreased by 4.7 per cent, spirits increased by 0.7, and ready-to-drink items increased by 5.3 per cent, and beer was consistent with the previous year.

Cannabis sales through licensed retailers increased by 4.5 per cent over Q3 of the prior year.

Bruce Keating, President and CEO of the NLC, says they’re comfortable with their product line in cannabis and have good market coverage in urban areas, but there is a need for a few more outlets in some other areas.

“An outlet will open in Churchill Square and an RFP has been issued for some of the more rural areas,” says Keating, “such as New Wes Valley, Fogo Island, Pasadena…that’s where we see some of the gaps and some opportunities for the illicit market.”