ST. JOHN’S, NL – The Government of Newfoundland and Labrador and the Newfoundland and Labrador Liquor Corp. (NLC) have announced new mark-up rates for beer that will result in higher discounts for most breweries in the province.
First mentioned in the 2020 Budget released on September 30th, and formally announced yesterday by Finance Minister Siobhan Coady and NLC CEO Bruce Keating, the new structure will see breweries that produce 100,000 litres or less per year – a category which includes 15 of the province’s 19 breweries – receiving a 95% discount on the commission they pay on beer sold at NLC locations, brewery stores, and other beer retailers.
The full discount structure is as follows:
0-100,000 litres: 95%
100,001-250,000 litres: 75%
250,001-500,000 litres: 55%
500,001-1,000,000 litres: 50%
1,000,001-1,500,000 litres: 40%
1,500,001-1,700,500 litres: 33.3%
1,700,501-2,000,000 litres: 15%
The government estimates that the changes will result in more than $1.1 million being kept in the hands of local breweries.
For more details, see the full news release.
Sources: The Telegram and The Government of Newfoundland and Labrador