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Penticton-based craft distilleries say red tape hampering growth

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Penticton-based craft distilleries say red tape hampering growth
Penticton-based craft distilleries say red tape hampering growth – Jan 23, 2017

Legend Distilling in Penticton was busy on Monday afternoon producing and packaging its staple item, vodka.

It’s one of several small distilleries in the Okanagan that say there needs to be more government support to get distilled products to consumers.

“I think governments as a whole need to reduce red tape and reduce taxation,” said Legend Distilling owner Doug Lennie.

Locally produced spirits are often absent from government liquor store shelves.

Producers say that’s because of stiff markups required by the Liquor Distribution Branch.

“We can’t afford to get in. They will only give us a certain amount of money for our product and it costs us more for us to make that product then they are willing to pay for it,” Lennie said.

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Jorg Engel, owner of Maple Leaf Spirits in Penticton, said customers can’t purchase his locally produced spirits in duty free stores.

“The whole design was created to sell to tourists at the airport. But as of right now, we’re not able to sell directly to duty free and that is a big challenge that we face.”

Tyler Dyck, C.E.O of Okanagan Spirits and president of the Craft Distillers Guild of B.C, which represents micro-distilleries in B.C., said there should be a level playing field with other craft products.

“If you’re willing to support B.C. wine and B.C. beer there shouldn’t be a punitive stance on B.C. distilled products because at the heart of a B.C. distillery is a brewery or winery. We have to ferment the material, and then we just do the extra step of distilling it… we’re just saying hey give us the same advantage as you’ve given these guys.”

A statement from the Ministry of Small Business and Red Tape Reduction, which is responsible for the Liquor Distribution Branch, said distilleries producing less than 50,000 litres annually do not currently remit mark-up on direct sales.

It also insists the province is stirring up a healthy industry.

The province points out the number of craft distilleries in B.C. has increased from four in 2010 to 35 today.

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