FINWIRES · TerminalLIVE
FINWIRES

CFIB Calls Out Lack of Progress on Direct-to-Consumer Alcohol Agreement in Canada Ahead of May-End Deadline

By

The Canadian Federation of Independent Business (CFIB) Monday raised concerns over the lack of transparency and progress of implementing direct-to-consumer (DTC) alcohol shipment policies, despite governments promising action by the end of May.

Small, independent breweries, wineries, and distillers across Canada have been waiting for clearer rules and expanded access to ship their products directly to consumers, noted CFIB. Its data shows that 77% of small businesses think Canadians should have the freedom to order Canadian wine, beer, and craft spirits directly from any province or territory without restrictions.

Several governments have publicly committed to reviewing or updating alcohol distribution frameworks, including a DTC memorandum of understanding (MoU) pointing to the end of May as the target date for implementation. However, with only days remaining before the anticipated deadline, there has been virtually no movement to deliver on those commitments, it stated.

Currently, only Manitoba and New Brunswick permit DTC of all Canadian alcohol products, and Ontario and Nova Scotia have signed a limited reciprocal agreement allowing shipments between the two provinces.

Other jurisdictional agreements continue to be fragmented. Nova Scotia and British Columbia allow DTC shipping of all Canadian wine, and B.C. permits DTC of spirits only from Saskatchewan. Alberta permits DTC shipments of B.C. wine only. Saskatchewan allows DTC shipping of wine and spirits from B.C. only.

Related Articles

Treasury

RBC Previews This Week's Payrolls in Canada

Canada will release the March Survey of Employment, Payrolls and Hours (SEPH) on Thursday, said RBC.The SEPH will be watched closely after a sharp drop in jobs in the timelier Labour Force Survey (LFS) in 2026 to April, noted the bank.SEPH employment counts have been persistently lagging paid employment counts in the LFS -- unchanged from a year ago as of February in SEPH versus a 0.4% increase in the LFS. Still, job vacancies in the SEPH, which aren't available from the LFS, have been edging higher in a sign labour demand is stabilizing, stated RBC.The bank expects SEPH wage growth will continue to underperform the surprisingly firm LFS readings in recent months. SEPH wage growth has been running around 3%, which is more consistent with an elevated unemployment rate versus the 4.5% plus readings from the LFS in March and April.

$$CXY
Treasury

Statistics Canada Says Preliminary April Wholesale Trade Rises 0.1% M/M

Statistics Canada said on Monday that the advance results for April indicate wholesale sales -- excluding oil, oil products, and other hydrocarbons and excluding oilseed and grain -- edged up 0.1% month over month.The increase partly reflects higher sales in the building material and supplies subsector, noted the country's statistical agency.This estimate was calculated based on a weighted response rate of 62.5%, while the average final response rate to the survey over the 12 preceding months was 82.3%, according to StatsCan.

$$CXY
Treasury

Canada's Retail Sales For March "Looked Good", But "Details Matter", says Rosenberg Research

On the surface, Canada's retail sales report for March "looked good", but "details matter", said Rosenberg Research after Friday's data release.The headline came in up 0.9% month over month, "handily beating" the consensus forecast and Statistics Canada's preliminary estimate of a gain of 0.6%, noted Rosenberg Research.(StatCan's preliminary estimate for April retail sales is also a 0.6% month-over-month increase.)The rest of the retail sales report, however, was "very weak", said Rosenberg, noting for example, core retail sales, excluding motor vehicles and gasoline, fell by 0.1% month over month.According to the research, the "key factor" in the upside surprise to the headline number was the 14.7% month-over-month jump in gasoline prices. That was the largest month-over-month increase in gasoline prices since May 2022, a move sparked by Russia's invasion of Ukraine.Overall, the research noted, gasoline's contribution to the monthly change in retail sales was 1.1 percentage points. Food and beverage spending made a marginal positive contribution to total spending in the month, and there were small negative contributions from building materials, motor vehicles, and general merchandise.There was more bad news in the report, said Rosenberg. In real terms, retail sales fell by 0.7% month over month, its largest decline in six months. The three largest declines in real spending in the month were building materials, general merchandise and gasoline."The significant drop in real spending on gasoline is about as clear an example of demand destruction as you will find. Canadians reacted quickly to conserve in response to the sharp increase in gasoline prices," the research said."A key takeaway is that even though Canadians did spend more in the month, there were clear signs of consumers turning more cautious in response to the increase in uncertainty from the outbreak of war in the Middle East," it added.The report points toward only limited momentum in consumer spending into Q2, according to the research. Fair warning, however, despite the news on retail sales for March, consumer activity for all of Q1 might end up looking "pretty healthy", it said, noting that on a QoQ basis, real retail sales rose at an annualized pace of +4.8% in Q1, the largest increase since 2024Q4. "This seemingly strong performance is testament to what had been signs of improving economic momentum earlier this year. It was nice while it lasted."

$$CXY