Local craft breweries, brew pubs and regional brewers in Saskatchewan are about to see reductions to production markups.
Effective Nov. 1, microbreweries will also gain the ability to “direct deliver” their products to retailers in Saskatchewan, sell other locally made products and set up a second retail location away from their production site.
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Government officials said they’re happy to announce these improvements to regulations, especially in light of recent tax increases on Saskatchewan beer exported to Alberta.
“Our response, as opposed to massively increasing taxes and imposing new regulations, was to significantly reduce taxes and to cut regulations so producers can compete in a free market environment,” Saskatchewan Liquor and Gaming Authority Minister Jeremy Harrison said.
“This significant reduction in markup rates will assist manufacturers as they plan for the future and allow them to make necessary investments to increase their production volumes and create jobs in a growing industry.”
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Shawn Moen, co-founder and CEO of 9 Mile Legacy in Saskatoon, is glad to see the changes.
“The changes being announced are a great example of government and industry working together to build a solid foundation for future growth and success,” Moen stated.
The change in production markups will also benefit larger brewers in the province.
Saskatoon-based Great Western Brewing Company will see a reduction in its mark-up rate.
READ MORE: Great Western Brewing expects ‘substantial’ hit on sales after Alberta beer markup
Great Western president and CEO Michael Micovcin said the changes will create a more level playing field and bring Saskatchewan more in line with other provinces.
“The Alberta government’s recent decision to raise the mark-up on out of province regional brewers as significantly impact our business,” Micovcin said.
“This mark-up change encourages competition and promotes interprovincial trade since it applies to all brewers, not just those in Saskatchewan.”
There are currently 38 licensed microbreweries and brew pubs in the province.
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