Government of Alberta Announces Standardized Beer Markup Policy

alberta_legislature

EDMONTON, AB – The Government of Alberta has announced that it has directed the Alberta Gaming and Liquor Commission to implement a new policy that will see a markup of $1.25 per litre applied to all beer sold in the province, regardless of the size or location of the brewery.

The previous policy implemented last October with little notice had a graduated markup for breweries in the New West Partnership region (British Columbia, Alberta and Saskatchewan) that ranged from 10 cents to $1.25 per litre depending on the size of the brewery, while beer from outside of the region was subject to the highest rate regardless of brewery size. This latter criteria lead to some breweries withdrawing from the Alberta market, while others initiated legal action against the province.

While this new rate means that smaller breweries in Alberta will now be subject to a higher markup, the Government has also announced that “a grant for Alberta-based small brewers will be provided to support the development of the industry, while supporting local entrepreneurship and investment.” More details on this grant is expected to be announced soon.

The Alberta Small Brewers Association has responded positively to the change, saying that the move “signals an understanding of the unique needs of the small and medium sized businesses that characterize Alberta’s growing brewing industry,” and that ASBA members “applaud the consultative approach taken by the Minister and his staff in bringing these changes.”

The new standardized markup rate will go into effect on August 5th.

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