CALGARY, AB – The Government of Alberta has announced that its retail markup schedule for small breweries is being adjusted to allow some larger breweries to also benefit from reduced markups on their beer.
Alberta’s beer markup structure has undergone a number of changes over the past several years, with some implementations facing legal challenges from out-of-province breweries and import agents who felt that Alberta-based breweries were given preferential treatment.
Under the current scheme that was implemented last November, all breweries located in Alberta or elsewhere that produce less than 50,000 hectolitres annually have a graduated markup of 10 to 60 cents per litre added to the price of their beer when sold in the province, while those above that production threshold have flat rate of $1.25 per litre applied.
Starting on September 13th, the small brewery markup is changing to include breweries with production up to 400,000 hectolitres, with the maximum graduated markup extending to 80 cents per litre accordingly.
Calgary’s Big Rock Brewery, which blamed the previous structure for layoffs earlier this year, has praised the move, saying in a statement that the expected reduction in their markup from $1.25 to 64 cents per litre will “significantly reduce the Corporation’s overall beer tax and provide the Corporation with a pathway for sustainable growth moving forward.”
For more details, see the full liquor markup rate schedule on the Alberta Gaming & Liquor Corporation website.
Source: Big Rock Brewery press release & AGLC website