Cross-border beer battle brewing
As the rest of Canada talks about the recent controversial Supreme Court Comeau decision, another cross-border beer battle is brewing in the Maritimes.
The Craft Brewers Association of Nova Scotia is alleging that a recent move by the New Brunswick Liquor Corp. contradicts something called the Maritime Beer Accord, potentially stunting the industry.
It’s a bit of a complicated story: a Fredericton craft beer producer called Picaroons Traditional Ales decided recently to begin selling Nova Scotia craft beer in its retail stores.
Sean Dunbar, Picaroons owner, said that last year the provincial government gave all microbreweries in New Brunswick the right to sell their products in each others retail outlets. And because of the Maritime Beer Accord, Dunbar said he was under the impression that meant he could also sell Nova Scotia craft beer.
According to a smattering of old news articles and various internet citations, this Maritime Beer Accord was a handshake agreement between the liquor corporations of New Brunswick and Nova Scotia, made more than a decade ago.
A press release issued in 2007 by the New Brunswick government said the agreement was put in place to lay groundwork for both Sleeman Breweries and Molson Canada to distribute their beer in both provinces under local brewer status.
At the same time, the release says, the two provinces reached a new policy on microbreweries stating that “Nova Scotia will treat New Brunswick microbreweries the same way we treat Nova Scotia microbreweries, and vice versa.”
The two provinces agreed to further discuss and eventually ratify the accord, the release says, but it’s unclear if the rules about microbreweries ever became official.
Dunbar said he contacted the New Brunswick Liquor Corp. multiple times to get a definitive answer on his interpretation of the accord and last week he was finally told he was not allowed to sell Nova Scotia beer.
This led to backlash from the Craft Brewers Association of Nova Scotia — the organization put out a press release Wednesday saying the New Brunswick Liquor Corp. had created a barrier to entry for Nova Scotia beer and calling on them to respect the Maritime Beer Accord.
“We have private wine stores here and New Brunswick beer is sold there along with ours,” said association executive director Kirk Cox.
“We have vanloads of kegs from New Brunswick coming directly into this province, not going through the NSLC and going right into bars and licensees, we think we should be afforded the same rules in New Brunswick just as the Maritime Beer Accord states.”
New Brunswick Liquor Corp. spokesperson Mark Barbour said craft brewers in New Brunswick are only permitted to sell New Brunswick-made craft beer in their brewery agency store, as defined in each of their individual contracts with the corporation.
“This has been a policy in New Brunswick for as long as craft brewery agency stores have had permits,” he said.
Furthermore, Barbour said to his knowledge, the Maritime Beer Accord never amounted to more than a verbal agreement.
“It was made with the spirit and intent of later becoming an actual signed agreement but that’s never been done,” he said.
“It’s a handshake right now.”
Dunbar said he doesn’t agree with that interpretation, but at the very least the confusion should highlight the need for officials from the two provinces to get together and figure out where they stand on the issue, especially in light of last week’s Comeau decision.
The decision by New Brunswick Liquor Corp. comes just days after the Supreme Court of Canada ruled in the case of Gerard Comeau who was fined in 2012 for bringing home cheaper beer and liquor he bought in neighbouring Quebec.
The court ruled provinces have the power to enact laws that restrict commerce if there is another overriding purpose — in this case the desire to control the supply of alcohol in New Brunswick.