Taxpayers should ask questions about NB Liquors beer contract: business prof

FREDERICTON - A business professor says New Brunswick's contract with Moosehead Breweries Ltd. to brew two private-label beers leaves taxpayers unable to determine whether they received value for their money.
Earlier this week, NB Liquor began selling Selection Lager and Selection Light, a pair of beers being manufactured for the Crown corporation by Moosehead.
NB Liquor and the provincial finance department won't release terms of the deal with Moosehead, citing a non-disclosure agreement in the pact.
John Pliniussen, a business professor at Queen's University in Kingston, Ont., said taxpayers should be asking questions about the deal.
"It would have been really interesting if NB Liquor had said `Here's our reason and our logic and our goal for doing this and how much it's costing us,"' said Pliniussen.
"(Taxpayers) should be asking for an update every six months. Are they making money? Is it working? If so, great. If not, admit it and get out of the business.
"But how will anyone know? It's impossible if (NB Liquor) isn't being transparent."
NB Liquor said last fall it was losing market share in the domestic beer category, and lower prices in Quebec and Maine were drawing New Brunswick customers across the border.
President and CEO Dana Clendenning said NB Liquor was losing about $12 million annually in sales.