A lower markup rate for Alberta-based craft beer brewers is being put on ice.
“The recent change to the beer markup will bring consistency to all beer products sold on Alberta shelves, regardless of size or region of brewery,” said Leah Holoiday, spokesperson for Alberta Finance in an email to the Airdrie City View. “In the coming weeks, the government will announce a grant specifically for small brewers in Alberta.”
As part of its 2015 provincial budget, the Alberta government lowered the markup rate on beer originating from small breweries in Alberta, British Columbia and Saskatchewan, while applying a rate of $1.25 per litre to beer originating elsewhere.
That move sparked outrage from other small Canadian breweries, including Toronto-based Steam Whistle, which attempted to secure a court injunction.
The latest changes will scrap that markup, setting the price of beer at $1.25 per litre regardless of the size or location of the company.
However, under a yet-to-be-detailed grant program, the move could essentially be a wash for Alberta craft brewers, according to Terry Rock, executive director of the Alberta Small Brewers Association.
“We expect Alberta brewers to be no worse off under the new system. At this point, we’re saying, ‘cautious optimism,’” Rock said. “We’ve made our position clear about what the needs of these small businesses are. Our expectation is the government will listen to what we’re saying. We are one of the fastest growing industries in the province.”
For beer aficionados, the new markup is unlikely to affect pricing of Alberta-produced brews, as brewers expect the grant program will cover associated costs. However, price tags on beers imported from British Columbia and Saskatchewan breweries are likely to increase.
Rebecca Gorbahn, general manager of Original Joe’s in Airdrie, said she did not expect her restaurant would be raising costs.
“From what I know from our suppliers, we should not be (incurring) extra costs. That will be up to the suppliers, and some people supplying may get greedy and say, ‘We have to raise our prices anyway,’” she said. “But I don’t foresee any price increases.”
