Home / Business and Economy / Mead Deal Sours Over 100% Markup
Mead Deal Sours Over 100% Markup
1 Sep
Summary
- A Nova Scotia meadery faced a 100% markup by New Brunswick's liquor retailer.
- The high markup forced a festival to reduce its mead order significantly.
- Nova Scotia's premier called interprovincial trade barriers 'foolishness'.
Fireside Meadery, a Nova Scotia-based business, faced substantial challenges in fulfilling an order for the Shediac Renaissance Faire in New Brunswick. The meadery was prepared to deliver nearly 600 bottles, valued at $11,300. However, New Brunswick's Alcohol and New Brunswick Liquor (ANBL) proposed a markup of over 100%, inflating the cost to roughly $25,000.
This unexpected markup forced the festival organizers to drastically reduce their order to 240 smaller bottles, a reduction to about a third of the original value. This outcome was disappointing for both the meadery, which lost potential revenue crucial for expansion, and the festival, which received less product at a higher cost.
ANBL stated that fairs must purchase alcohol through the Crown corporation and that interprovincial direct-to-consumer agreements do not apply. They claimed standard wine markups were applied, noting that using a New Brunswick producer would have incurred lower fees, aligning with their mandate to support in-province businesses.
The situation drew attention from Nova Scotia Premier Tim Houston, who publicly denounced such interprovincial trade barriers as "foolishness" that hinders domestic commerce. In contrast, Nova Scotia's liquor regulator, the NSLC, indicated that a similar transaction in Nova Scotia would involve a much smaller markup, demonstrating a potentially more favourable interprovincial trade environment within Nova Scotia.
Fireside Meadery expressed a desire for reduced interprovincial trade barriers, emphasizing the need for Canadian unity and support for businesses across provinces, especially given the current global economic climate. They hope for improved collaboration to ensure smoother trade between Maritime provinces in the future.