“Opening up interprovincial trade of alcohol would have a very detrimental effect on the breweries that are here in Newfoundland and Labrador,” Mr. Farrell said in an interview Friday. “There’s no upside. You’d flood the market with trucked-in beer.”
It looks more like “Molson-Coors could easily terminate the local factory because the bigger Molson-Coors factories in Quebec and Ontario could pick up the demand with lower production costs”.
I don’t know if the economics of shipping the beer inland is cheaper than maintaining a local factory, but if that really is the case then Newfoundland might wanna keep some of its protectionist guards up or be smart about the barriers. Like allowing beer in from small producers only, not the likes of Molson.