In years past, summer was often marked by a beer producer strike which meant Albertans found themselves unable to purchase their favourite frothy beverage, or forced to consume sad suds from south of the border.
This summer, beginning last Friday (Aug. 5), Albertans found themselves paying more for their summer staple as the Alberta Gaming and Liquor Commission (AGLC) tacked a $1.25 per litre markup onto regular beer sold by small brewers within the province.
The AGLC markup affects regular beer produced by brewers in the New West Partnership regions of Alberta, B.C. and Saskatchewan. Regular beer is that which contains 11.9 per cent, or less, alcohol.
The markup, states AGLC, already applies to all other regular beer products – the small brewer markup, then, aligns small brewers with large producers of regular beer.
According to AGLC – standardizing the application of markup rates on all regular beer products supports the level playing field and open and competitive environment in Alberta’s marketplace. As well, the markup is expected to generate about $35.7 million in revenue for a general reserve fund.
B.C. and Saskatchewan small brewers were quick to condemn the markup, stating it represents an interprovincial trade barrier.
The fact brewers outside Alberta are complaining, said Banff-Cochrane MLA Cam Westhead, Thursday (Aug. 4), “is interesting. We think Alberta had the most open market in Canada and we heard from Albertans that it was hard to get into other markets.
“We think Albertans were subsidizing other provincial breweries and we thought this would level the playing field. Brewers (in Alberta) will pay the tax up front, then receive a rebate.”
On the other hand, some of the sting of the markup may be reduced for small local brewers like Banff Ave. Brewing and The Grizzly Paw Brewing in Canmore due to funding available through the Alberta Small Brewers Development Program.
When Canmore’s Uncorked food and beverage event was launched in February, Finance Minister Joe Ceci hinted that support for the craft brewing industry was in the works.
That support is now reality in that small brewers (those that produce under 300,000 hectolitres) can apply for grants to assist with capital purchases, to explore new markets, for staffing or to increase production capacity.
The grants, said Westhead, along with a reduction in the small business tax rate, should help small craft brewers to operate.
“The grants can be used for just about anything,” he said. “I am proud to be part of a government that recognizes the value of the brewing business and is taking substantive steps to supporting the small brewing industry. I am proud to represent a riding that has such a wealth of entrepreneurs and small businesses.”
During the announcement of the small brewers grant program at the end of July, Finance Minister Joe Ceci said the government is dedicated to diversifying the Alberta economy, creating jobs and expanding markets for local products.
“That is what today’s announcement is all about – providing entrepreneurs with the tools they need to grow this young and dynamic industry,” he said. “There’s no doubt that by investing in small brewers, we will see good jobs created for Albertans and a more resilient, diversified economy.”
According to the province, Alberta’s approximately 40 small brewers produce more than 250,000 hectolitres of beer annually. Since May of last year, more than 16 new breweries have been licensed to operate in the province.
Ceci was in the Bow Valley on Wednesday (Aug. 10) for a photo opportunity at the Grizzly Paw brewery and the Banff Ave. Brew Co.
CEO of the Grizzly Paw Brewing Company Robert Flatt said the small brewers grant program is a positive and progressive change in combination with the recently announced mark up.
“The supporting grant process that has taken effect at the same time will certainly support our continued growth plan in the Bow Valley and beyond,” Flatt said. “Our Canmore brewery is locally owned and operated by locals every step of the way, utilizing locally grown Alberta barley. The grant for all Alberta breweries will assist with the continued growth of the craft beer industry and level the playing field in our unique liquor retail model.”
