Saskatchewan to Add 50% Markup on U.S. Liquor Sales Through SLGA Starting Sept. 8

Saskatchewan will add a 50 per cent markup to U.S. liquor products sold through the Saskatchewan Liquor and Gaming Authority to retailers, effective September 8, Premier Scott Moe announced Thursday.

The province said the move matches U.S. tariffs on Canadian liquor and is part of Saskatchewan's ongoing response to the Canada-U.S. trade dispute.

Liquor stores, bars, and restaurants that purchase American products through the SLGA will face the higher wholesale cost. Whether that increase gets passed on to consumers remains an open question for many retailers.

"It's still to be determined whether it's going to be reflected once the remaining stock sells out that we're able to buy," said Alex Wasylenko, manager of the Sutherland Beer and Wine Store in Saskatoon. "The weeks that follow, that's gonna be the time to tell what's gonna happen with the prices on the shelves."

Wasylenko said most retailers will likely continue stocking U.S. products, but customers who choose American brands may see higher prices depending on how each business manages the added cost.

"If people are set on coming home with a certain product, we will have that for them, but when it comes to the prices it's still to be determined if that entire 50 per cent is going to be passed along to the customer or how it's going to be broken up," Wasylenko said.

He noted a growing shift in consumer preferences since the trade dispute began. "Canadians are thinking with their wallet in all their shopping decisions and we've seen lots of people that have been changing their regular options based on prices alone," he said.

University of Regina economist Jason Childs said some U.S. producers may absorb part of the cost to hold their market share. "Some producers have lowered their prices in order to try and maintain that market and to maintain the customer base," Childs said. He added that once consumers find a substitute they prefer, winning them back becomes difficult for U.S. brands.

Childs also noted a broader trend. "We've seen that alcohol sales per capita in Saskatoon and Canada as a whole have started to come down and notably so," he said. "I think what we're seeing with the U.S. right now might exacerbate that problem."

Hospitality Saskatchewan president Jim Bence said spending patterns in the sector are already down and the markup will add pressure.

"Some of this we can pass on to the consumer. Some of it we can't. So we'll see operators eating the costs," Bence said.

Wasylenko said the shift toward Canadian products has been building for months and he expects it to continue. "We have to adapt with it because there's more and more consumers that are changing their choice of products they'd like to buy and they're showing a greater interest in where their products are coming from," he said.

The SLGA markup applies to U.S. liquor sold through the provincial distribution system beginning September 8.