Booze-makers hope top court frees more than beer

Many B.C. alcohol makers hope to see Canada's top court open up interprovincial trade by ruling on the side of a New Brunswick man whose fight to bring homecheap boozefrom Quebeccould change the country's internal trade system.

Gerard Comeau fought a $292.50 fine he received after trying to drive from Quebec to New Brunswick with a trunk full of beer and liquor in 2012.

The province of New Brunswick argues that overturning the fine Comeaureceived for bringing alcohol across a provincial boundary would mean"an end to Canadian federalism as it was originally conceived."

If the court sides with Comeau,the case could threaten trade barriers long in place for a myriad of industries from agriculture to e-commerce.

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The retiree was caught in an RCMP sting with more than a dozencases of beer and three bottles of liquor.

That haul put him over the limit of 12 pints (about 18 cans or bottles).

Case threatens stats quo

The case being heard in Ottawa this week could alter acentury-old system of provincial controls over tobacco and liquor ifComeauwins.

For example, depending on the province, aperson transporting alcoholacross a provincial border if deemedmore than the personal limits allow is charged provincial tax and a markup.

Comeau'slegal team argues that's unconstitutional because it ignores the spirit of free trade outlined in Canada's Constitution Act of 1867. Their challenge focuses on a case from 1921 that underpins the complex system of tariffs and markups that's grown up since.

In 2016, a New Brunswick judge agreed Comeau's fine was unconstitutional.

The province appealed.

That's when the beer lover garnerednational attention, with the Conservative partypushing a #FreeTheBeer campaign, urging people to pressure their MPs to loosen trade barriers.

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But justices on the nine-member panel fear a ruling inComeau's favour could cause confusionbecause of the complex system that relies on the legal precedents his lawyers are challenging.

Booze lobby

Meanwhile, alcohol manufacturers are cheering Comeau. Some even joined his fight.

B.C.'s alcohol producers say a Comeau win could expandmarkets.

David Brimacombeowns WaywardDistillation House in theComoxValley, and sells online toCanadian customers.

He says lots of suppliers are already skirting Ontario's provincial mark-ups this way.

Brimacombe said authorities turn a blind eye to alcohol in the mail.

"It is 400 times more profitable for me to ship directly," he said.

The gin is in the mail

"If I got made an example of, as someone who ships Christmas booze, it wouldn't be the worstthing," he said.

That's because online sales are small. But if Comeau's case prevails, he and other suppliers might get access toout-of-province liquor store shelves without the prohibitive mark ups.

Right now a bottle of Wayward gin sells in B.C. for $55.

That same bottle for sale in Alberta because of markups costs$79.

In Ontario, he says mark-ups are even higher.

On a bottle of gin, theduties, which factor in alcohol percentage, type, cost and quantity,total $46.16, which almost doubles the price.

B.C. has allowedpersonal importation of wine and liquor markup-free since 2012.

Watch and wait

So many sectors are hoping Comeauwins because they say their profits could increase if they gain access to moremarkets withouthaving to pay taxes and markups.

"Certainly a decision that favours Comeau willhave implications on many sectors," said Ken Beattie, executive director of the B.C. Craft Brewers Guild.

Wine makers are so keen theyjoined Comeau'scase. There are11 intervenors along with beer giants and even a marijuana advocacy group.

Many B.C.'s wine makers want more interprovincialtrade, and already ship high-end wine across borders.

"This is nothing new. The floodgates aren't going to open," said Miles Prodan,president of the British Columbia Wine Institute. Prodanwants to break down the borders when it comes to booze sales.

"We're not afraid of the competition," he said.

'Grow the pie'

Sandra Oldfield, founder of Tinhorn Creek Winery in Oliver B.C, seesan opportunity to expand the Canadian market.

"We are looking to grow the pie," said Oldfield who believes cross-border sales would increase wine"culture."

Brimacombealso believes letting people get a taste of alcohol from other provinces would help bond Canadians.

"Think of Molson Canadian's 'I am Canadian' campaign," he said.

"The consumer the people loved it."