The price of the beer you drink is in the hands (and flowing locks) of this man – Deputy Premier Thomas Lukaszuk. (Photo courtesy of Edmonton Journal)
In today’s Edmonton Journal, a story ran about the current beer policy review examining mark-up rates. The story was sparked by a news release issued by the Liberal caucus releasing the joint recommendations of Alberta’s breweries and calling on the government to do more to assist Alberta-based brewers.
Of course, loyal readers of this website have known about this for at least three weeks, when I first reported it. Clearly the Liberals and Journal news reporters are not regular visitors to this site.
I post the article today, not to rehash a discussion that we engaged a few weeks ago, but to do two things. First, I find it curious that the Journal take is that the province is “considering” changes to help Alberta breweries. That isn’t quite accurate. The province launched a review of AGLC policy related to beer and initially excluded Alberta producers from the process. In fact the review looked like it was going in the opposite direction – altering the rules to favour the big boys. The Alberta brewers had to muscle their way into the discussion. The existence of a joint letter (where I gleaned the recommendations from) does not constitute “consideration”. Having written many letters to the government in my day, I am pretty sure most were read and discarded.
That is not to say that the recommendations from Alberta brewers are being ignored. Quite the opposite. I suspect the solidarity they are displaying has made the government sit up and take notice. Which leads me to my second point. When I first caught wind of the review (from a couple of different sources), the talk about it was more ominous. There were rumours the graduated mark-up rate would be scrapped, or altered in such a way as to seriously harm most small players.
But the winds seem to be shifting. Now talk is about how to boost provincial beer production. I find this a heartening turn of events. While I realize the government is remaining mute on the issue so far, I know enough about politics and communications to understand that framing matters. If the public debate becomes about helping local brewers, the government has to address that in some fashion. By making the issue public, and shifting the focus of the debate, we potentially change the resulting policy. And – I suspect – a good chunk of the credit for that goes to the Alberta brewers’ savvy and cooperation on this issue.
Some people will be concerned about this turn of events, and fairly so. I have written before about the complexities of this issue (so won’t go over it again), but the gestalt of it all encourages me. More discussion about how to strengthen local beer production is a good thing. Craft beer rarely makes the news section, and a debate about what do we want as a beer system is hopeful.
I will keep you posted on any developments as I hear them.
October 7, 2012 at 5:22 PM
It feels like there’s a bit of a move afoot to throw the non-Albertan craft-brewer baby out with the big brewer bathwater. Why not introduce a small reduction in the rates paid by Alberta brewers and a small increase in the rates paid by out of province brewers instead of hitting BC, Saskatchewan, and Manitoba craft brewers with a $1.56/six pack increase, especially when, while I appreciate the impulse to make quality product, the Alberta craft market is much more… gentrified. It’s going to harm the craft market, long-term if Albertans can’t move beyond a generic Canadian-style lager without shelling out $2.50 a bottle, $3 a bottle.
October 7, 2012 at 7:43 PM
As Alberta based brewer’s we want a fair playing field, so when BC and Ontario pull down their walls, we can talk about re opening the debate.(NEVER GOING TO HAPPEN) IF YOUR NOT MADE HERE, PAY FULL TAX. That’s the way it is in every other province. Why should we be different in Alberta?
October 8, 2012 at 10:41 AM
Because Alberta’s (relatively) open liquor system has given craft consumers here the best retail selection in Canada, and that shouldn’t change just because other provinces have worse systems.
I hope you guys do get a reduction in your mark up rate, but how does raising taxes on out-of-province craft help anybody? You’re still not going to sell in other provinces, breweries outside Alberta will be hurt, consumers will pay a bit more and have a bit worse selection. Frankly this whole thing has made me rethink my support of Alberta breweries.
October 9, 2012 at 11:23 AM
This issue continues to create two clear camps of beer fans. Neither is wrong – this is a bloody complex issue. I don’t blame the Alberta brewers for taking the stand they have taken. They are looking out for their self-interest. And while that overlaps with the interests of beer consumers (we all want quality, locally made craft beer) it is not fully in sync. Beer consumers ALSO want quality craft beer made elsewhere and they want it as affordably as possible.
I don’t think we need to re-consider our support of Alberta breweries, but neither should we lose sight of Valerie’s point about pricing and its effect on craft growth.
I suspect more fun and games before this all settles out.
Thanks for reading and posting, everyone.
October 11, 2012 at 12:22 AM
To be honest, this issue got brought up because the government was starting to take heat over Minhas taking advantage of tax breaks for small brewers by employing brewers in the United States and leaving a revenue stream outside the province. Essentially, people whined because of it. Now the ground is being set to open up the issue, and the AGLC has other things in mind. Why not have everyone pay the high mark-up rate?
The problem now is that if you come up with a solution that solves the issue, it ends up applying to everyone outside of Alberta. In general, the system is flawed because we are in a disadvantaged situation where benefits of reduced taxes are leaving the province. Not just with Minhas, but pretty much any other brewer, but the incentives are great for those who want to start a brewery outside of the province and simply import into Alberta. There are no incentives (or minimal incentives) for Alberta craft brewers to export to other provinces.
No matter what, you’re not going to be in a fair situation. Put non-Alberta based brewers to the high bracket, less product in the Alberta market, more opportunity for Alberta brewers to thrive, more potential to create more jobs for Albertans through the reduced competitive environment. Keep things as is, and people still complain about subsidizing out of province breweries, essentially creating jobs out-of-province. Then there is the AGLC mind set, tax everyone at the high rate, which will inevitably cripple the beer industry as a whole in Alberta. I do think the rates in general do need a rethink.
Maybe the whole system needs a rethink. But for now, one issue at a time.