Nova Scotia alcohol sales dipped slightly after cannabis legalization but rose at stores selling both

Comparing 17 months before and after cannabis legalization in Nova Scotia, alcohol-only stores saw an initial 2.91% sales decrease with minimal ongoing growth (0.06%/month), while stores selling both cannabis and alcohol saw a 0.55% initial increase with stronger growth (0.29%/month). Post-legalization alcohol sales averaged 2.4% below pre-legalization at alcohol-only stores but 3.1% above at cannabis-selling stores. Combined sales were 1.2% below pre-legalization. Beer was more affected than spirits or wines.

Comparative interrupted time series models analyzing monthly alcoholic beverage sales in Canadian dollars at Nova Scotia liquor stores during 17 months before and after cannabis legalization (May 2017-February 2020). Contrasted alcohol-only stores versus stores that also began selling cannabis.

Whether cannabis substitutes for or complements alcohol use has major public health implications. This natural experiment in Nova Scotia, where some government stores sold both substances, shows that the answer may be both: overall alcohol sales declined slightly, but co-location drove increased alcohol purchasing.

The co-location of cannabis and alcohol sales in government stores is a unique Canadian policy feature. The finding that proximity to cannabis sales increased alcohol purchasing suggests that retail design choices within legalization frameworks have unintended consequences for alcohol consumption patterns.

Observational interrupted time series cannot establish causation. Only one Canadian province studied. 17-month post-legalization window may not capture longer-term trends. COVID-19 pandemic began near the end of the study period. Sales data may not perfectly reflect consumption.