Province looks to allow third parties to run specialty liquor warehouses

The provincial government is making some changes to liquor distribution, meant to give drinkers more choice.

The Sask. Party introduced amendments to The Alcohol and Gaming Regulation Act on Wednesday that would allow third parties to operate liquor warehouses, from which they would distribute specialty products.

Currently, if stores want to stock a specialty product, they order it from the Saskatchewan Liquor and Gaming Authority (SLGA) and it’s brought in from a warehouse in Alberta or B.C. before being sent to the retailer.

With the changes the provincial government is making, third-party warehouses will be able to stock those liquors the province considers specialty in warehouses in Saskatchewan.

“Look at this as complementary to the distribution centre that we have. It is working well with high-volume products and that won’t change,” said Gene Makowsky, the minister responsible for the SLGA.

Makowsky said the province has already been doing this kind of thing with beer for years.

According to the government, specialty products account for about five per cent of the province’s liquor sales. The products typically are ordered in small amounts and often on a more irregular basis than more popular beers and wines.

The new warehouses would allow the SLGA to concentrate on distributing more popular liquor.

Makowsky said the change will allow more choice into the market and allow retailers to get them in a more timely manner.

“I know there are situations where someone just doesn’t want to bother getting product because it takes six months to get here, and so this might alleviate some of that and provide business opportunities for folks in Saskatchewan,” Makowsky said.

Makowsky explained the SLGA will still get its markup from the products, so it doesn’t expect a loss in revenue. He also doesn’t expect any job losses at the SLGA distribution centre stemming from the change.

— With files from 980 CJME’s Lisa Schick