Newfoundland and Labrador Weighs Future of $3.2M U.S. Alcohol Stockpile

Newfoundland and Labrador is facing a crucial decision regarding its $3.2 million inventory of U.S. alcohol, which has been in storage since early 2025. This situation arises as other provinces, such as Nova Scotia and Manitoba, begin selling off their U.S. alcohol to donate proceeds to charity during the holiday season.

The previous Liberal government ordered the removal of American-made products from the Newfoundland and Labrador Liquor Corporation (NLC) shelves in response to U.S. President Donald Trump‘s trade policies. While many provinces have since reversed their stance, Newfoundland and Labrador has yet to announce its plans for the stored inventory.

Provincial Government Remains Silent on Alcohol Inventory

According to Bruce Keating, president and CEO of the NLC, the decision regarding the $3.2 million cache is ultimately in the hands of the provincial government. Keating stated, “Those kinds of discussions and consultations are continuing. We’ll continue to have discussions with the provincial government on that.”

As of now, the provincial government is not publicly disclosing its intentions. Craig Pardy, the minister responsible for the NLC, did not provide an interview but issued a statement through spokesperson Kathryn Summers. “While no actions have been taken at this time with respect to the existing U.S. product for Newfoundland and Labrador, we anticipate a decision in the near future as we continue conversations with the NLC,” Summers wrote.

Despite the ongoing deliberations, the absence of U.S. alcohol on NLC shelves has already affected the Crown corporation’s revenue. The NLC’s second quarter performance report for this fiscal year revealed net earnings of $56.3 million, marking a 6.2 percent decline compared to the same period last year. Keating noted that this drop is partly attributable to the removal of U.S. products.

Impact on Sales and Revenue

With U.S. wines unavailable, customers have shifted to alternatives from regions such as Argentina and Chile, as well as local Canadian products. Although the sales volume remains consistent, these alternatives generally sell at lower price points. “We haven’t seen the same impact in spirits as we’ve seen in wines, just in terms of the difference in the average price point,” Keating explained. “But there’s no doubt we felt the effect of the removal of the U.S. product on our sales and on our earnings.”

Other provinces have similarly experienced declines but are now rebounding. For instance, Nova Scotia recently announced it would sell its $14 million U.S. inventory, with approximately $4 million earmarked for Feed Nova Scotia and other charitable organizations. Following suit, Manitoba also made a similar announcement regarding its U.S. alcohol stock.

As the NLC anticipates its third quarter, which includes the busy holiday season, Keating expressed optimism about potential improvements in financial performance. “The third quarter for us would be our biggest quarter of the year. Already we’re about two months into that and we’ve seen encouraging results during this quarter.”

As Newfoundland and Labrador weighs its options, the fate of its U.S. alcohol inventory remains uncertain, with potential implications for both charity and corporate revenue. The NLC and provincial government continue to deliberate, with a decision expected in the near future.