'We count on December': Sask. liquor producers concerned over SLGA discounts ahead of holiday rush

December is one of the busiest times of the year for liquor producers and retailers, but this year many Saskatchewan businesses feel they’re not on an even playing field with province-run stores.

In March 2023, all remaining Saskatchewan Liquor and Gaming Authority (SLGA) stores are scheduled to close. The prices of products in the stores are being discounted in the months leading up to the closure.

Mark Heise, the owner of Regina’s Rebellion Brewing Co., said local retailers and producers can’t compete with the discounted prices.

“We noticed that they started to significantly discount a lot of products at the retail stores and it all seemed to be non-local products,” Heise said.

“There’s really no need to be blowing out product this early when they’re not shutting down until March, especially when most of these products are shelf stable.”

During conversations with the SLGA, Heise said he’s been advised that local businesses could be asked to buy back their remaining products from the SLGA that don’t sell.

“That seems extremely unfair. They’re willing to take a loss on non-local products, and then they’re going to want me to buy back expired beer when they close the stores?” he said.

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In a statement, the SLGA said it has not requested that craft producers buy back product at this point.

Another concern for Heise is that customers will be more inclined to buy non-local products.

“We count on December. This is when we make all of our money. It makes or breaks our year and we hope we get enough cash in our pockets to survive January and February,” Heise said.

“We’ve had three years of really, really bad finances and operations for small businesses. We don’t need this right now. Businesses are already at their breaking point.”

Last Mountain Distillery sells its products at both private retailers and SLGA stores. Its co-owner said sales across the board have taken a massive hit as a result of SLGA discounted prices.

“[The SLGA] is trying to blow out products that they don’t normally sell a ton of which, a lot of times, are national brands. So they’re not pushing people to support local, they’re not keeping the local products stocked up how they normally would and they’re selling products at a huge discount and a loss,” Braeden Raiwet, the co-owner and general manager of Last Mountain Distillery, said.

Raiwet said during his conversations with SLGA, he’s been told local products won’t be discounted until after New Years.

“They’re putting all the national brands on discount during the busy months, but not local companies,” he said.

“It’s kind of a surprise to us. They’ve supported us from day one but this certainly doesn’t feel like they’re supporting us.”

Minhas Sask said although its prices are comparable with the discounted SLGA stores, there are still concerns.

“The private retailers that are in the province are being very strongly affected by the sales that SLGA stores are putting on,” Moni Minhas, the founder of Minhas Sask, said.

“They support local in a big way, including our business.”

Minhas said he hopes Saskatchewan residents do stick with local products in the coming weeks if possible, even if it’s a few dollars more.

“Every person who is associated with the liquor business pays some of their bills this month,” he said.

“Any products that come from outside of this province or country, do not create many jobs. What we do, and all local manufacturers do, is bring excitement, economy, creativity and innovation to this province.”

The SLGA said discounts are only currently applied to the bottom 25 per cent of products.

“Many of these slow-moving products have been discounted in order to begin the process of moving inventory that might not otherwise sell,” an SLGA spokesperson said.

“There are no price promotions of any mainstream products. The top 75 per cent of products continue to be ordered and have no price reductions.”

The statement said the SLGA continues to replenish locally made crafts products.