Manitoba Liquor & Lotteries recorded another year of growth in cannabis sales, but declines in alcohol and lottery revenue dragged down the Crown corporation’s overall profit for a fourth consecutive year.
The corporation delivered $724.1 million in profit to the provincial government for the 12-month period ending March 31, according to its latest annual report, released Tuesday. That figure is $6 million lower than the previous year and marks a $16.8 million decline in net income over the past four years.
Cannabis Growth Outpaces Other Sectors
Cannabis was the strongest source of revenue growth for Liquor & Lotteries in the last fiscal year, with sales rising seven per cent to $182.1 million, up from $170.1 million in 2024-25 and $153 million the year before that. The corporation said the increase amounted to an extra $12.1 million in revenue, attributing the surge largely to the growing number of cannabis retail locations across the province.
Over the course of the year, 32 new cannabis stores opened while 12 closed, bringing the provincial total to 249 locations by the end of March. One of the new entrants is Ganja House in Winnipeg’s Seven Oaks neighbourhood, opened in February by owner Narinder Singh. Singh said competition remains stiff even on Main Street, and that sales were slow at first but have grown steadily since opening. He said he aims to differentiate his store through a wide product selection, including premium brands, and customer service.
Dried flower remained the top-selling cannabis category, generating $105.3 million in revenue, an increase of $6.4 million from the prior year. The corporation also brought in $41 million from plant and seed products, the first year Manitoba cannabis retailers have been permitted to sell them.
Alcohol and Lottery Revenues Slide
Alcohol sales fell from $887.8 million in 2024-25 to $880.1 million in the most recent fiscal year. The annual report attributes the decline to a continuing trend of Manitobans consuming less alcohol per person, linking it to shifting consumer preferences, health and wellness considerations, and broader economic conditions.
Liquor & Lotteries sold 93.6 million litres of alcohol in the past year, the fifth straight year of falling sales volumes. While ready-to-drink products such as canned cocktails and hard seltzers have grown in popularity, beer and wine sales continue to decline annually. Beer sales totalled 58 million litres in the last year, down from 69.6 million litres four years earlier.
Lottery revenue also slipped, with net income from that segment dropping more than 22 per cent, from $39 million to just over $30 million. The corporation said the decline was tied to fewer large jackpots during the year. VLT revenues also fell, while operating costs rose due to a combination of employee compensation, technology upgrades and associated fees.
Casino Revenue a Bright Spot
One other area of growth for the corporation was its casino business, which saw revenue increase by $15.9 million to reach $273 million for the year. The annual report attributes the gain to higher participation in electronic games, table games and bingo at Club Regent Casino and McPhillips Station Casino.
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