(CBC) - The Beer Store is reaping $700 million annually in "incremental profits" when compared to Quebec stores because of higher prices and the near-monopoly the foreign-owned retailer has in Ontario, a new economic study has concluded.

University of Waterloo economics professor Anindya Sen found the prices for a 24-bottle pack of beer at The Beer Store was $9.50 more or 27 per cent higher when compared to two major grocery stores in Quebec.

The average for a 24-pack of Molson Canadian, Coors Light, or Budweiser before tax was $25.95 in Quebec, and in The Beer Store it was $35.56.

"These findings aren't necessarily an argument to reduce beer prices, as there are arguments that higher prices play an important social policy role," said Sen, whose study was financially supported by the Ontario Convenience Stores Association.

The Beer Store is owned by the U.S.-based Molson Coors Brewing Company, Sapporo of Japan and Anheuser-Busch InBev of Belgium.