To help small brewers and distillers diversify and grow, the provincial government has reduced the markup rate for their product effective Dec. 8.
“Alberta produces some of the best agricultural products in the world and these manufacturers work hard to turn them into high-quality spirits.
“We will continue to work with this industry to ensure they can do business in Alberta as easily and successfully as possible,” said Alberta’s President of Treasury Board and Minister of Finance Joe Ceci.
With the change, Alberta’s small distilleries, cideries, meaderies and cottage wineries will be able to sell their products at farmers’ and artisan markets, or their manufacturing facilities at a reduced markup rate.
The province hopes that this move will encourage economic diversification in Alberta.
The decision to reduce the markup on small manufacturers was developed by the province in collaboration with the Alberta Craft Distillers Association.
The government said that the cost saving for manufacturers will promote growth and diversification in the craft spirits industry.
“We believe that Alberta’s small liquor manufacturers play an important role in creating jobs and building a diversified economy,” said Ceci.
“This program will allow manufacturers to hire staff, expand production and reinvest in their businesses,” he said.
The new rules will see the markup rate reduced by $11.21 per litre to a new rate of $2.46 per litre for spirits.
Beverages classified as refreshment beverages, such as cider and coolers, will see their markup reduced by $1.49 to $0.32 per litre.
The new rates apply to all products produced by manufacturers in Alberta that produce under 1,500 hectolitres of spirits.
