E-Malt.com News article: Canada, AB: Alberta Gaming and Liquor Commission eases beer brewing rules

Two Calgary business partners that have been brewing beer in BC said on December 5 they will be able to realize their dream of a homegrown brewery, thanks to a decision by the Alberta Gaming and Liquor Commission.

But while Alberta’s liquor policy announcement was met with enthusiasm by Tool Shed Brewing Co., other small brewers said the changes don’t go nearly far enough, Calgary Herald reported on December 5.

Effective immediately, the AGLC will eliminate existing minimum production capacity requirements for liquor manufacturers in the province. It means that any fledgling brewer or distiller able to meet food safety standards can start a business, without having to ensure a certain volume output from the start.

“This is going to open the door for so many craft brewers — it’s incredible,” said Graham Sherman, co-founder of Tool Shed Brewing Co. “This means we don’t have to build a monstrous, C$2 million brewery to get started in Alberta, in Calgary, where we live. We can build a system that’s appropriately sized for us.”

Sherman said he and partner Jeff Orr wanted to build a brewery in Calgary when they founded Tool Shed two years ago, but the cost of doing so was too great. Instead, they ship all their barley, malt, and yeast to Langley, BC for brewing.

“This means we can come home. It’s great news,” Sherman said.

AGLC vice-president of liquor services Alain Maisonneuve said the province is responding to the recent explosion of interest in craft beer and spirits and wants to help foster growth in the industry by removing some of the impediments to entry. In addition to eliminating the minimum production requirements, liquor manufacturers will no longer have to obtain a separate license depending on whether they are a distillery, brewery, or winery. One licence will now suffice.

“We have had questions from breweries that want to, say, produce spirits as well. We’ve talked to wineries that are looking for other types of opportunities,” Maisonneuve said. “The craft industry is really growing in North America, and we’re really excited about creating that opportunity in Alberta for Alberta businesses.”

But not everyone in the province’s craft beer industry was cheering Thursday. Many of Alberta’s small brewers have been pushing the government to make changes to its beer tax, or graduated markup, system so that existing tax incentives are limited only to those who physically brew their beer in the province. The changes announced on December 5 don’t address that issue at all, although a spokesperson for deputy premier Thomas Lukaszuk confirmed he is still reviewing the matter separately.

Kevin Wood, CEO of Drummond Brewing Company, said while Alberta treats all small brewers the same, other jurisdictions boost their local brewing industries by limiting imports or promoting local products at government-controlled liquor stores. He said it is so difficult to compete that he has decided to move his operations from Red Deer to BC.

“The government is not making any moves, so I have to. And that means I’ll no longer be an Albertan — how do you think that makes me feel?” Wood said.

Wild Rose Brewery CEO Bill McKenzie said he is growing frustrated waiting for the province to make a decision on the taxation issue. In his case, he wants certainty about what taxation levels Wild Rose will be facing as it grows, so that he can make important business decisions.

“We’re opening up a new brewery, and we want to make sure the environment improves for small brewers,” McKenzie said. “The big burning issues that small brewers are facing, in my opinion, weren’t addressed today.”


06 December, 2013