(File photo/northeastNOW staff)

By Ben Tompkins

Saskatchewan Liquor and Gaming

Humboldt Co-op purchases off-sale retail store permit

Jan 26, 2023 | 9:20 AM

The Co-op in Humboldt is set to expand its services, after purchasing a Saskatchewan Liquor and Gaming ‘Off-Sale’ Retail Store Permit (RSP).

The Co-op purchased it from the Pioneer Hotel in Humboldt, stating in a release sent to northeastNOW that “they have been interested in expanding into liquor sales for several years.”

According to the company, conversations with the Pioneer Hotel began in August of 2022, and the deal was finalized in December.

The plan is to start construction of a new building in the spring on the property directly south of its food store. They also hope to open the new store before the end of 2023.

As part of the purchase agreement, the Pioneer Hotel will continue to own the license and operate until four weeks prior to the new store opening, at which time they will continue to operate their bar without off-sale.

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Co-op worked closely with three men from the Hotel, whose grandfather was an original member of the Co-operative (member seven).

They said it seemed fitting that a member who helped them start the Co-op back in 1936, is now indirectly helping them expand into the liquor sales business.

“We look forward to offering our members an exceptional liquor retailing experience providing a walk-in cold beer room, robust product offering and amazing customer service in a socially responsible shopping environment,” said Co-op. “We’d like to thank all our members for their support and loyalty. It is because of this continued support that the Humboldt Co-op can expand our offerings and grow our Co-op.”

Meanwhile, the Saskatchewan Government has announced that they will be selling their Humboldt RSP by auction in February of 2023.

This is part of a province-wide release from the Saskatchewan Government, which was announced after the finalization of Co-op’s deal.

Other locations around the area included in the auction are Watrous, Prince Albert, Nipawin, Melfort, and Saskatoon.

With other locations up for auction in and around the Humboldt area, Jason Childs, associate professor at the University of Regina, whose research interests include alcohol policy, said Co-op’s deal could affect the price.

“It’s going to drive down the value of the SLGA license at auction, I don’t see how it doesn’t because Humboldt’s not that big,” he said. “There can’t be a lot of room left in the market for that.”

Despite the potential price drop, Childs believes that may not increase the market.

“I don’t think we’ll see a whole lot more, it looks like we’re getting to that point of stability, where you’re not going to see this massive rush to get in.”

As for smaller businesses in the area that focus solely on a liquor-type business, larger corporations could drive them out and dominate the market.

According to Childs, there might be an opportunity, just with different hours.

“Because they’re looking at the whole enterprise question, rather than liquor being the only line that they offer, they’re going to be able to accept a slightly lower profit margin than a standalone organization that was just doing liquor would. They’re trying to expand their lines, and diversify a little bit, so I think we are going to see some movement towards a little bit more of a chain environment,” he added.

“The other question is will there be anybody filling that sort of off-sale, later hours market… that’ll remain to be seen.”

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Ben.Tompkins@pattisonmedia.com

On Twitter @BenTompkins_8