Selling booze for less than Social Reference Price

I don’t know much about alcohol regulation in this province, but I recall $18.67 per 12 pack of 355 ml beer being the minimum.  This is the price the provincial liquor commission announced it would sell its Selection store brand beer for.

The beer was supposed to be cheap in an attempt to stop NB residents from cross boarded beer shopping.  The price was supposed to stay low because the province wouldn’t be spending marketing funds on selling the stuff. 

Then they had a promotion giving away video game hardware.  I thought this was a minor expense and forgot about it.  The province also put up a website with recipes.  Again, a minor expense, so I didn’t think much of it.

Now the province is giving away whiskey with its brand of beer.  This means they are now selling more alcohol for less money than $18.67 per 12 pack.

I think this is strange.

The CBC reports that one Liberal MLA doesn’t think this is a good plan.  They also report that an opposition MLA is questioning the legality of selling more booze for less money.

Beyond legality, one has to wonder the economics of doing this.  Selling beer for less was supposed to help with profitability, by keeping beer drinkers in province. Presumably selling the beer for even less is taking a bite out of Selection’s profits.

Odd.