The burgeoning craft alcohol industry has seen sales nearly double over the past five years in Saskatchewan, according to the Saskatchewan Liquor and Gaming Authority (SLGA).
But, according to the provincial auditor, the province is struggling to keep pace when it comes to meeting its regulatory oversight targets.
The auditor’s latest report notes that of 83 approved craft alcohol product lines, over half (43) did not have valid lab test report certificates.
These certificates prove products are untainted and that their alcohol content matches the label.
Saskatchewan Provincial Auditor Tara Clemett says the SLGA is failing to follow up when producers fail to submit a new certificate, which is required every two years. One producer, she noted, had not provided an updated certificate more than nine months after its two-year deadline.
“Perhaps it’s because the industry has evolved as such and we have seen growth pin terms of the number of craft alcohol producers in the province,” Clemett said Tuesday, recommending the province improve its oversight processes.
“Effective regulation of craft alcohol production reduces the risk of the public consuming unsafe alcohol or alcohol inconsistent with labelling.”
Clemett also found the SLGA “did not use a risk-based approach to inspect craft alcohol producers and high-risk manufacturing areas” and that “the Authority completed 10 inspections and 24 pre-permit inspections in 12 months (compared to 64 craft alcohol producers in total) and had not inspected one producer in the past three years.”
She also recommended the SLGA renew craft alcohol permits prior to expiry “and treat producers fairly and consistently” and that the SLGA “assess the reasonability of production and sales information submitted by craft alcohol producers” which decides the production levy the province charges producers.
“SLGA seems to be doing a pretty good job when it’s originally permitting a new craft alcohol producer,” Clemett said.
“It’s about that ongoing monitoring.”
SLGA spokesperson David Morris said in a statement that “SLGA accepts the Provincial Auditor’s Office (PAO)’s assessment and is committed to addressing the recommendations in a timely manner.”
“SLGA also appreciates that the PAO pointed out that SLGA is effectively regulating the province’s growing craft alcohol industry and has effective processes in place.”
The auditor did point out that there is a process which allows consumers to make a complaint about product quality to the SLGA, and that while her team was researching the report they did not identify any instances of someone becoming sick or endangered after consuming a local craft product.
Rebellion Brewing President & CEO Mark Heise said he sees that trend as indicative of a local industry committed to producing top quality products regardless of the frequency of regulatory procedures.
“There’s no reports of people consuming bad products, but what there is a lot of reported cases of is global recognition and continuous awards for the products coming out of Saskatchewan right now.”