NLC today released its financial and operational results for the first quarter of fiscal year 2026-27, ended July 4, 2026. All information is unaudited.

NLC reported net earnings for the quarter of $47.9 million, an increase of $1.7 million, or 3.6%, compared with Q1 of fiscal year 2026. The increase in net earnings is mainly attributable to a significant 21.3% increase in the commissions earned on the sale of beer through Brewers’ Agents due to inventory rightsizing adjustments experienced in the prior year.

NLC paid $46.5 million to the Government of Newfoundland and Labrador in the quarter, consistent with the first quarter of fiscal 2026.

“Our first quarter results reflect a solid start to the fiscal year, with growth in net earnings and steady beverage alcohol performance despite cooler and wetter weather conditions compared with the same period last year,” said Bruce Keating, NLC President and CEO. “Strong wine sales, stable beer performance, and growth through our licensee channel helped drive results, while our continued focus on operational excellence enabled us to return $46.5 million to the Provincial Government. The quarter also reflects the continued consumer demand for Canadian and locally produced beverage alcohol products following the removal of U.S. products. As we move through the year, we remain focused on serving customers, supporting communities, and delivering value for the people of Newfoundland and Labrador.”

Beverage alcohol sales for Q1 were $75.8 million, which is an increase of 0.3% over the prior year. Wine was 3.4% higher than prior year and beer was higher by 0.2%. Spirits declined 2.6% compared to prior year while ready-to-drink (RTD) decreased 1.6%.

Sales through NLC’s corporate stores were higher than Q1 of the prior year by 0.4%, while Agency Stores across the province experienced a decrease of 3.6% compared with Q1 of the prior year. Sales through licensees were 6.6% higher than the prior year. NLC commissions on the sale of beer through Brewers’ Agents totalled $16.2 million.

NLC continued to support local beverage alcohol producers throughout the first quarter. During Q1, NLC provided $2 million in financial support to craft beverage alcohol producers in the province and worked collaboratively with the Newfoundland and Labrador Craft Beer Association on the realignment of in-store cold space to help ensure local products remain accessible to customers.

LC listed 77 products from local producers during the quarter and continued to promote locally made offerings through product features and producer spotlights in the summer edition of Enjoy magazine, helping increase awareness of Newfoundland and Labrador's beverage alcohol industry among consumers.

In Q1, NLC awarded a Request for Proposal for a new corporate Liquor Store in Placentia, with the replacement location scheduled to open in Q2. NLC also finalized a lease agreement to relocate its Topsail Road Liquor Store, with the new location slated to open in Q4. These initiatives are part of NLC's broader efforts to modernize its retail footprint, enhance service delivery, and ensure customers have access to safe and accessible retail environments.

Cannabis sales through licensed cannabis retailers (LCRs) totalled $29.2 million in Q1, a decrease of 2.5% over Q1 of the prior year, namely due to a decline in product selfdistributed by local producers. Total retail cannabis sales in Q1, including online sales, were $29.3 million. Whole flower remains the top cannabis category representing 33% of total sales, followed by pre-rolls at 20%, and vape products at 17%.

In Q1, NLC provided $1 million in cannabis producer premiums to local producers. NLC also listed 20 products through local cannabis producers during the quarter.

NLC issued a call for up to 15 new Tier 4 LCRs. The expansion which focuses primarily on rural and underserved communities is an important part of NLC’s efforts to improve safe access to regulated cannabis and further disrupt the illicit market. Several of these stores are expected to open in Q3.

At the end of Q1, there were 62 LCRs operating across the province. While the Dominion Lake Avenue location closed during the quarter, The Herbal Centre opened in Churchill Square, helping to maintain access to regulated cannabis for consumers in the area.

During Q1, NLC Manufacturing produced 87,000 cases of spirits, an increase of 70% compared to Q1 of the prior year mainly due to the timing of production.

NLC also produced approximately 14,000 cases of RTDs, wine, and beer, an increase of 100% mainly due to new products and timing of production. Several new products were produced by NLC Manufacturing during the quarter including Screech and Shiver RTDs, an Iceberg RTD and a new Crystal Head Camo Limited Edition Vodka.

Regulatory Services continued to support NLC's commitment to public trust, operational excellence, and social responsibility by promoting the safe, responsible, and equitable access to alcohol and cannabis across the province. During Q1, the department expanded inspection capacity in the St. John's region through the addition of a new inspector, enhancing regulatory oversight and supporting public safety objectives.

Regulatory Services supported a significant increase in special event activity during the quarter, issuing approximately 100 special event licences across the province. As the summer season approached, the department also processed numerous licence amendments to accommodate seasonal patios and other operational changes. Throughout the quarter, staff worked closely with licensees to promote responsible service practices and ensure risk mitigation measures were in place and aligned with legislative and policy requirements.

Responsible retailing is central to NLC’s mandate in managing and overseeing the safe and responsible sale, distribution, and regulation of beverage alcohol and cannabis. Through NLC’s Check 25 program, corporate Liquor Store staff are required to ID customers who look 25 years of age or younger to ensure they are of legal age to purchase beverage alcohol. The program also provides staff training on checking and verifying valid forms of ID and challenging and/or refusing service to anyone who appears to be under the influence. During Q1, NLC staff challenged over 116,000 transactions.

In May, NLC further demonstrated its commitment to mental health and well-being across Newfoundland and Labrador through its Push for Mental Health campaign in support of the Canadian Mental Health Association, Newfoundland and Labrador. With the support of customers, employees, and supplier partners, the campaign raised more than $105,000 to help strengthen access to mental health programs and services throughout the province. NLC matched customer donations up to $15,000, reinforcing NLC's commitment to promoting responsible retailing and supporting community well-being across the province.

Throughout Q1, NLC invested in communities across Newfoundland and Labrador through its Community Donations Program and employee-led initiatives. Five organizations received funding through the Community Donations summer 2026 round, including the McSheffrey Resource Centre, Cancer Care Foundation, Single Parents Association of Newfoundland and Labrador, Choices for Youth, and Roots of Resilience. NLC also supported employee volunteerism through the launch of its Dollars for Doers program, recognizing more than 40 hours of community service completed by employees during the quarter.

NLC also reinforced its commitment to fostering inclusion and supporting diverse communities across Newfoundland and Labrador. During Q1, NLC celebrated Pride Month through its annual Pride flag raising and provided $5,000 to Quadrangle NL in support of a provincial 2SLGBTQIA+ Community Counselling Line, delivered in partnership with the Jacob Puddister Memorial Foundation.

NLC is a Crown Corporation of the Government of Newfoundland and Labrador with responsibility through the Liquor Corporation Act, the Liquor Control Act, and the Cannabis Control Act for the importation, sale, distribution and management of beverage alcohol and cannabis.

NLC is one of the province’s largest retailers, offering over 4,000 products annually. Its extensive retail distribution network includes 27 corporate Liquor Stores, 140 Agency Stores, more than 550 Brewers’ Agents, and approximately 1,300 licensed establishments including restaurants, lounges and other licensees. NLC also provides special order services.

In addition to alcohol, NLC regulates and distributes to 62 licensed cannabis retailers and operates a secure online platform for legal cannabis purchases at ShopCannabisNL.com

NLC runs a 77,000-square-foot distribution centre as well as a manufacturing facility which specializes in blending, bottling, and canning, with products exported to over 30 countries.

All profits from NLC are returned to the Government of Newfoundland and Labrador to be reinvested in the province by funding key public services. Through every product, partnership, and service, NLC is committed to earning public trust and delivering lasting value to Newfoundland and Labrador.

Media contacts:
Tara Haley
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