Beer wars blamed on shortage of young drinkers
$5 coupons to boost sales, but NB Liquor reviewing discount rules
Last Updated: Thursday, August 26, 2010 | 3:26 PM AT
CBC News
Beer sales were up three per cent overall in New Brunswick this summer. (istockphoto.com) New Brunswick's biggest brewers have launched major coupon discounts on beer this summer to try to boost slumping sales before the end of the season.
The province has rules preventing in-store markdowns of greater than $2 on a dozen beer, but does not limit coupons.
Labatt, Molson and Moosehead have all been offering coupons that discount a twelve-pack by as much as $5.
Joel Levesque, Moosehead's vice-president, said the demographic that drinks the most beer, New Brunswickers aged 19 to 25, is shrinking and despite sunny weather, summer sales are down.
'It's been a terrific summer. It could've been more terrificker if I had more beer to sell.'—Picaroons brewmaster Sean Dunbar
He said that had sparked a fierce competition among the big brewers.
"You entice people to take your brand by offering something that they can't get from their brand regularly, for example a T-shirt in the box or in this case, it's $5 coupons," he said.
Levesque said there would be more discounts as major labels try to clear shelves by Labour Day.
NB Liquor said overall beer sales are up three per cent from last summer. Microbrewers said that could be explained by the 25 per cent increase in their sales.
Sean Dunbar, brewmaster for Picaroons Traditional Ales, said the company's July sales climbed by about 50 per cent.
"We're out of beer. It's been a crisis year for us because we can't keep up with demand at all," he said.
"It's been a terrific summer. It could've been more terrificker if I had more beer to sell."
While mainstream consumers may continue to get big coupon discounts for now, NB Liquor will release new rules this fall that may cap those sales.
Rick Smith, vice-president of NB Liquor, said while overall beer sales have not shrunk this summer, there were big swings in sales among the major breweries.
He said the Crown corporation is worried about beer becoming so cheap that it will encourage over-consumption.
"We've got a project underway right now that should bring a new policy for coupons," he said.
"It'll look at should there be a maximum value on a coupon, for example, should there be maximum quantities that are allowed to be used and should coupons be allowed to be used in conjunction with other promotions."
Smith said the new rules should be in place next month.
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