Government Response

NOTE: Recipient name has been removed to ensure the privacy of the recipient/s.

For a detailed response to these points, please see Wine Kitz Atlantic Regional Director Blair Sampson’s April blog post.

Dear Mr. XXXXXX:

I am writing in reply to your email addressed to the Premier of Nova Scotia, the Honourable Darrell Dexter, with regard to the decision of the government to not permit onsite u-brew/u-vint services in the Province. As Minister response for the Nova Scotia Liquor Corporation (NSLC), the Premier has asked that I respond to you on his behalf.

The Government of Nova Scotia has reviewed this issue on a fairly regular basis and has chosen not to allow this type of alcohol production in the province. There are a number of public policy reasons for this decision. Our Government’s primary issue is our concern for the financial impact this type of business may have on the NSLC and thus the Government of Nova Scotia. We face some significant financial pressures. As such, the Government requires predictable revenue to enable us to get out of the current deficit position. NSLC revenues are key in this regard. In the provinces which you cite, most of the governments tell us that these establishments have had significant impact. With over $100 million in annual revenue alone in Ontario, U-vints represent a substantial loss in revenue to the Ontario Government. We expect that a mature u-vint industry would reduce NSLC wine sales. For those who wish quality bulk wine purchases, the NSLC offers a “House Wine” bottle your own option in 8 locations throughout the province.

Secondly, governments in Nova Scotia since 1930 have decided that because of the health impacts this product has on society that any profits from retailing it in Nova Scotia should go towards assisting the provincial government to meet the services provided to its citizens. As part of this public policy choice, we set minimum pricing which the product cannot be retailed below. Through this social responsibility approach we balance the public’s desire for the product with the societal impacts.

Additionally, while it is illegal for u-vints in other provinces to supply licensed establishments, they sometimes do so anyway. This uncontrolled distribution is possible because it is very difficult and costly to regulate and police these types of businesses and their compliance with whatever regulations are put in place. There is also a concern about the impact on society of having extremely cheaply priced wine or beer in the market place. Numerous studies in Canada and around the globe by addiction research organizations as well as the World Health Organization indicate that when beverage alcohol products are easily accessible, that the health and social impacts on society are increased dramatically.

We believe that in Nova Scotia we have balanced all of these issues well over the years offering a wide selection of products through the NSLC, while allowing those who wish to make their own wine to do so by purchasing the kits and doing it themselves. To expand the ability of u-vints to make their own product changes them to both a manufacturer and retailer of finished product at the same time. We do not believe this approach is in the interest of our community from both an access and a health perspective.

We continue to maintain a dialogue with the u-vint industry and the NSLC and representatives met recently to discuss the issue.

I do appreciate your experience as a consumer of the benefit of u-vints/u-brews.

Yours sincerely,

Original signed by

Graham Steele

c Hon. Darrell Dexter

Hon. Graham Steele
Minister
NS Department of Finance
Provincial Building, 7th Floor
1723 Hollis Street
Halifax, NS B3J 2N3