SASKATOON – A Saskatoon brewmaster is taking issue with provincial regulations that force liquor producers to send alcohol to Regina before being distributed to the province’s new, private liquor stores.
Stephen Cavan, CEO of Paddock Wood Brewery, says he would like to sell small batches of ‘speciality’ beer, but it’s not economically viable for him to do so due to the costs of transporting the product to Regina.
“I have to send those cases down to Regina, and to the special orders desk, and they’ll package it up and they’ll ship it back,” explained Cavan.
He would like the private stores to be treated the same as restaurants or bars, where is he able to deliver the product himself.
“The shipping and handling costs don’t make it viable.”
The Saskatchewan Liquor and Gaming Authority (SLGA) said their regulations are no different than anywhere else in Canada.
“This system basically exists to insure that all applicable mark-ups are collected on beverage alcohol that’s sold in the province,” said David Morris of the SLGA.
Morris said mark-ups are “important to the people of Saskatchewan” because funds go towards health, education and infrastructure services in the province.
However, Cavan believes the regulation has unintended consequences for local brewers.
“It’s a good example of regulation that is a huge wet cloth on growth and development and it may be that they simply don’t realize that,” said Cavan.
The SLGA counters that it promotes growth for small producers and microbreweries by charging them a substantially less mark-up rate on both draft and packed beer.
An operation like Paddock Wood would pay a mark-up of 98.7 cents per litre for packaged beer, compared to a national brewery, which would pay $1.99 per litre.
“That favourable mark-up rate is meant to support small Saskatchewan businesses and Saskatchewan micro breweries”
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