As of Aug. 5, Alberta craft beer brewers will no longer be able to take advantage of lower markup rates – but under a new grant program unveiled by the Alberta government, the financial impact to local small businesses should be offset.
“This change will ensure consistency for producers and consumers,” said Leah Holoiday, spokesperson for Alberta Finance in an email to the Airdrie City View. “This program will foster new local jobs, while ensuring small brewers are able to grow their business. This is an important step in supporting the Alberta Jobs Plan and a strong and resilient Alberta economy.”
The move reversed a previous initiative announced by the Alberta government as part of its 2015 provincial budget – which saw beer originating from small breweries in Alberta, British Columbia and Saskatchewan taxed lower than the $1.25 per litre on beer originating elsewhere.
Under the new regulations, all tax is set at $1.25 per litre regardless of the size or location of the company.
“We’re over the moon about this,” said Airdronian Matt Gaetz, a partner of the Calgary-based Dandy Brewing Company. “It’s a great initiative by the government to promote Alberta breweries and to encourage bar owners, liquor store owners and restaurant owners to purchase local.”
The government will disperse a maximum of $20 million per year under the program to Alberta’s small brewers. Gaetz said he anticipated the grant program would nullify any need to unload additional costs to consumers.
“I can’t speak for every brewery, but Dandy definitely won’t. I’ve already done the leg work to make sure our prices are status quo,” he said.
However, concerns were raised by Progressive Conservative Interim Leader Ric McIver.
“This is consistent with the NDP’s pattern of adding taxes everywhere and rebating some of them back,” he said. “I’m glad they’re doing something for the small breweries, but what every Albertan should remember is when beer costs you more for the rest of the summer, this is the NDP’s additional tax on many beers that you’re buying.
“The NDP pattern is attempting to create dependency, which they have now done with Alberta brewers – they now have a dependency on a rebate from the Alberta government. So it’s completely counter to having a free market economy.”
