Types of Premises Licences

In the NWT most premises licences  are Class A (liquor-primary) and Class B (food-primary). The Class C licence (mobile) is for premises that move or change regularly. The Class D licence (liquor-incidental) was established for businesses and organizations that are not in the food or beverage industry, yet they sell liquor at their premises. Class C licences cover commercial caterers and ships. Class D licences cover situations like military canteens and bed and breakfast establishments. 

Across Canada, types of liquor licenses are changing, particularly those that might fall under the NWT’s Class C and Class D. Many businesses include liquor service as part of their business model, particularly when customers are receiving a service over an extended period. Examples of premises under this model include tourism businesses, funeral homes, and art galleries. Other businesses do not have premises at all, including chartered tour buses and fishing expeditions. In the NWT, some businesses that provide services like aurora-viewing and shore-lunch excursions are interested in becoming licensed – either to sell liquor or to allow patrons to bring legally purchased liquor with them. If the legislation were changed to include this, licence holders would be required to meet the same requirements already established under Classes C and D. The benefits are customer enjoyment, economic development and tourism development. There are risks, but the risks are generally low because these types of businesses cater only to paying or registered customers. 

Minimum Prices

Licence holders in the NWT are prohibited from advertising free or discounted liquor. The legislation gives examples but does not define “discounted”, leaving it open to interpretation. This creates uncertainty and leaves room for low prices. A number of provinces have set minimum liquor prices for licensed premises. These are minimum prices per drink based on alcohol content. The minimum prices change annually based on inflation. Minimum prices eliminate the worry about low prices enticing over-consumption, eliminate volume discounts (e.g. drinks are cheaper the more a person buys), and yet provide flexibility for licence holders to adjust their prices above the minimum limit. Minimum prices are a harm reduction measure for people whose consumption is influenced by price. 

Ferment on Premises

Are you in favour of licenced businesses where customers can make beer or wine? Why or why not?
Across Canada it is common to see ferment-on-premises businesses – more commonly known as u-brew or u-vin stores. Operators of ferment-on-premises businesses must obtain a liquor licence and are authorized to provide the ingredients, equipment and facilities necessary for customers to make and bottle their own beer or wine. Rules vary across Canada but generally the customer must participate in the initial and final steps of making the liquor, including removing it from the premises when it is finished. The licence holder cannot sell pre-made liquor or store the liquor after it has been completed. NWT liquor legislation currently does not allow for ferment-on-premises businesses.

Restricted Days and Hours

There are restrictions on which days and hours licensed premises may sell/serve liquor. Generally, licensed liquor sales may occur between 10am on one day and 2am on the next day. Off-sales must end by 10pm. In terms of days, Class A (liquor-primary) licences and service clubs holding a Class D licence may only operate a maximum of 10 Sundays per year. Class A (liquor-primary) licences must be closed on Christmas Day and Good Friday. No licensed premises may be open until polls are closed during a plebiscite or election. Restricted days may be loosened, and hours may be tightened, by a community bylaw. For example, the City of Yellowknife removed restrictions on Sundays, Christmas Day and Good Friday for Class A premises. The Town of Inuvik allows operation of Class A premises on Sundays between April 1 and September 30 at certain hours.  

Minors in “Class A” premises

In the NWT, minors are permitted in most licensed premises except Class A (liquor-primary) premises, with some exceptions. A minor may provide entertainment, perform repairs, or work in the kitchen. Minors are also permitted in Class A premises for a liquor-free event or for a special event conducted under a Special Occasion Permit with the Board’s permission. Class A premises that wish to have minors present to have a meal, may apply to become a Class B (food-primary) premises for specific days or hours. 

In a few provinces, Class A licence holders may allow minors without switching to a Class B operation under certain circumstances, like applying for a “minors endorsement”. This allows minors, who are accompanied by a parent or guardian, to be in the premises while having a meal during certain days or hours. Some provinces allow minors without an official endorsement during family-oriented food events such as Mother’s Day brunches or wedding receptions. The advantage to this is that Class A premises do not need to obtain a second type of licence to allow minors to accompany their parents. The disadvantage is that whatever rules are set in place would apply to all Class A premises equally, recognizing that Class A premises are mostly bars and lounges that focus on liquor sales.