The Saskatchewan government says it’s eliminating regulatory barriers to growth for the province’s wine and spirit manufacturers.
The changes include an immediate increase in production thresholds for all craft manufacturers in the province and the introduction of a graduated markup structure based on annual production.
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“By changing the structure, we’re going to allow there to be certain scale advantages,” minister responsible for SLGA, Jeremy Harrison explained.
Harrison said the provincial craft alcohol industry has grown from one cottage winery in 2001 to eight in 2016, along with eight micro-distilleries.
The introduction of a graduated markup structure will mean rates are more in line with actual production, allowing local micro-distilleries — like Last Mountain Distillery — to better plan for the future.
“It used to be kind of a cliff we’d look out at. Oh, 50,000 litres, then once you get there, you dive off and you’re treated like Smirnoff,” co-owner Meredith Schmidt explained.
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“At that size, profitability would completely be gone.”
Another change to policy will allow local micro-distilleries and cottage wineries the ability to sell different products on site.
Schmidt said the company is already looking into working with other Saskatchewan-based producers.
“We’ve actually been pushing to be able to sell other Saskatchewan-made products… since last winter,” Schmidt said.
“We’ve actually got our orders in to be able to have those products on the shelf as soon as we’re able to.”
Craft producers can also establish their own retail store separate from their production site, a new change Schmidt is exploring.
“The secondary retail space that they’ve given us is wild card right now. We’re looking into it and we do plan to do it eventually,”
A number of regulatory barriers are also being reduced, including allowing manufacturers to directly deliver their products to Saskatchewan retailers.
Changes related to the province’s craft beer industry are expected this fall.
With files from The Canadian Press
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