Canada's Alberta Government has been advised to maintain its current liquor retail model, rejecting proposals to allow grocery and convenience stores to sell alcohol.

This decision follows recommendations from the MLA Advisory Committee, which concluded that such a move would "significantly harm" small businesses within the province's private liquor industry.

The recommendation to uphold the existing system is made to the Minister of Service Alberta and Red Tape Reduction.

The committee, tasked with evaluating the feasibility of expanding liquor sales, engaged in extensive consultations with industry representatives, business owners, and experts.

The review aimed to assess the potential impact on Alberta's retail liquor industry, which has been a key economic driver since its privatisation in the 1990s.

Alberta premier Danielle Smith said: “The idea of expanding liquor sales to grocery and convenience stores has been mused about for years. I’m grateful for the significant work done by MLAs to look into the feasibility and wisdom of such an expansion and the recommendations they’ve put forward.

"I am pleased to accept those recommendations and ensure Alberta continues to uphold our current model, which is one of the most open in Canada.”

The MLA committee's findings emphasised the strength and diversity of Alberta’s existing private liquor model.

It noted that the existing model provides a wide variety of alcohol options, competitive pricing, and tailored customer service.

The committee warned that allowing grocery and convenience stores to sell liquor could result in the widespread closure of independent liquor stores, significant job losses, and a reduction in product variety and customer service.

Alberta has more than 1,600 stores and offers over 36,000 liquor products, making it one of the most open markets in Canada.