Watch above: The Government of Saskatchewan is launching a comprehensive third-party review of its policies related to the craft alcohol industry. Joel Senick looks at how the changes could benefit local producers.
SASKATOON – The Saskatchewan government plans to have a third party review its policies regarding the province’s craft alcohol industry. But how could changes benefit local brewmasters?
The decision is mainly due to the growth that the industry has seen in recent years, according to Don McMorris, the minister responsible for the Saskatchewan Liquor and Gaming Authority (SLGA).
“I think there were three in the business back in 2009 and now there are fifteen, with more looking to get into the business,” said McMorris.
McMorris added that policies in place years ago reflected the state of the industry, which has now changed.
“It’s an evolving industry, it’s a growing industry, it’s a complex industry,” said McMorris.
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The province will issue a request for proposal in February in order to find an independent third-party to complete the review. It will look at a number of issues, including the government’s liquor mark-up structure, production thresholds and direct shipping of craft alcohol to retailers.
READ MORE: Saskatchewan liquor regulations too rigid for Saskatoon brewmaster
“This ability to step back and look at everything from a larger view point and how things work in other provinces and sort of get a better bigger picture idea, is really exciting,” said Susan Echlin with the Saskatchewan Craft Alcohol Producers group.
The province also announced that it will temporarily raise the production limits for craft liquor producers. McMorris said some companies had grown to the point that they were forced to stop production, or face mark-up fees that could total a million dollars.
“When SLGA put that policy in place, they never assumed that a producer would get to that volume, but we have some of the distillers getting there,” said McMorris.
‘That’s a really exciting one that was the most time-sensitive,” said Echlin on the measure.
Echlin who operates a winery in Perdue, Sask., said she’s very confident that the review would lead to positive changes in the relationship between the SLGA and craft liquor producers.
However, not everyone is as sure as Echlin. Steve Cavan operates Saskatoon-based microbrewery Paddock Wood and said he’s cautiously optimistic after hearing Wednesday’s announcement.
“I thought I gave a slam dunk argument to their concerns back last February,” said Cavan.
Cavan has been pushing the government to allow him to directly sell his product to private retailers, instead of having to ship it to SLGA in Regina first.
“Nothing happened … it’s a year later,” he added.
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