Manitoba

Sales of legal bud are reducing purchases of ale and other suds, finance minister claims

The legal sale of cannabis has vaporized more than $6 million worth of provincial beer sales, Manitoba's finance minister claimedas he continued predict no net revenue from recreational weed.

Scott Fielding says beer sales are down $6M as a result of legal cannabis

Cannabis and beer are competing for consumer dollars, Finance Minister Scott Fielding says. (Nick Adams/Reuters)

The legal sale of cannabis has vaporized more than $6 million worth of provincial beer sales, Manitoba's finance minister claimed as he continued to predict no net revenue from recreational weed.

Almost six months after Canada legalized the sale of recreational cannabis, Manitoba is not expecting to make a profit off the new industry, Finance Minister Scott Fielding said Monday.

Expenditures related to legal cannabis will outpace revenue from its sale for years, said Fielding, who declined to say whether the province will make any cannabis revenue projections in the provincial budget expected on Thursday.

He also suggested any cannabis profits could be offset by reduced beer sales, based on Colorado's experience following legalization.

"When cannabis is introduced to a marketplace, what actually happens is beer sales goes down. We anticipate that our beer sales are going to go down by upwards of $6 million dollars," Fielding told reporters at the Manitoba legislative building.

The official opposition quickly ridiculed Fielding's claim.

"If this government can't make money selling weed then I think their reputation as good managers of money is grossly overstated," NDP leader Wab Kinew said.

Comments

To encourage thoughtful and respectful conversations, first and last names will appear with each submission to CBC/Radio-Canada's online communities (except in children and youth-oriented communities). Pseudonyms will no longer be permitted.

By submitting a comment, you accept that CBC has the right to reproduce and publish that comment in whole or in part, in any manner CBC chooses. Please note that CBC does not endorse the opinions expressed in comments. Comments on this story are moderated according to our Submission Guidelines. Comments are welcome while open. We reserve the right to close comments at any time.