B.C. increases opportunities for craft brewers
By Contributor
As British Columbia continues to grow its reputation as the craft beer capital of Canada, craft brewers in every corner of the province will now benefit from an additional $10 million a year in economic support thanks to a significant reduction in the mark-up rate for craft beer products.
Effective July 3, 2016, the mark-up rate for small and regional breweries will be reduced by approximately 25% per litre, meaning that craft breweries will have increased financial capacity to grow and expand.
These changes further improve mark-up rates for craft beer that were announced last year when government introduced the new wholesale pricing model, support small businesses in British Columbia, and will enable craft breweries to create jobs while increasing the availability of high quality, made-in-B.C. products.
“We’ve been told first hand by craft brewers that changes to modernize B.C.’s liquor policies have revolutionized the craft beer industry in our province and made room for craft breweries to establish themselves,” said John Yap, Parliamentary Secretary for Liquor Policy Reform.
“This is a thriving industry in our province and we want to help ensure its growth continues.”
The Province will also take action to improve cash flow for craft brewers, meaning they will have more money to fund payroll, rent, and investments in new equipment. Craft breweries will no longer be required to remit all of the revenue from the sale of their products to the Liquor Distribution Branch before the mark-up is applied.
Government’s support for innovation and entrepreneurship in B.C.’s burgeoning craft beer industry is in direct response to feedback government received from British Columbians and industry through the Liquor Policy Review and wholesale pricing consultations.
The reduced mark-up rate builds on previous provincial efforts to cut red tape and increase supports for the craft beer industry. These measures have resulted in a 35% increase in the amount of craft beer produced in B.C. over the last year, including:
- Microbreweries now have opportunities to showcase their products at their local BC Liquor Stores – even before they’ve proven themselves in the larger marketplace,
- Breweries can access new revenue streams thanks to changes that allow on-site tasting lounges at breweries and beer sales at artisan and farmers’ markets,
- Breweries now have the ability to sell other types of liquor at in their lounges and special event areas, allowing patrons to enjoy a glass of wine or a mixed drink while their friends enjoy a beer, and
- Government is also taking a closer look at ways to improve the process for getting a brewery licence and exploring a quality assurance program for craft producers to help promote made-in-B.C.
“Increased support from the provincial government will not only help grow the sector, it will provide much needed assistance to existing breweries that blazed the trail for craft beer in British Columbia,” said Ken Beattie, executive director of the BC Craft Brewers Guild.
“Our province is the craft beer leader in Canada and our established breweries have pioneered an industry that is now garnering world-wide recognition. Today’s announcement means all small brewers can look toward hiring more people, investing in more tanks, and growing their business in every region of the province.”
