ARCHIVED: Small Business and Red Tape Reduction
- Over the past five years, craft beer sales in British Columbia have almost tripled.
- The B.C. craft beer industry has grown from 54 breweries in 2010 to 125 in January 2017, with up to 20 new breweries pending.
- As of June 2016, three large breweries produce beer in B.C.
- In 2013, craft brewers in B.C. produced 654,000 hectolitres (hl), compared to almost 942,000 in 2015 – a 44% increase in three years.
- The majority of B.C. breweries are smaller scale producers – and make up approximately 80% of the breweries in British Columbia.
- According to the industry association, the craft beer sector employs an estimated 2,500 people in B.C., with an additional 1,500 working in brewpubs.
- On Aug. 26, 2016, the Province announced a new remittance model for BC craft brewers (those who produce less than 350,000 hl annually) remitting mark-up to the LDB on their direct sales. Craft brewers no longer have to remit all of the revenue from the sale of their products to the LDB before the mark-up is applied.
- On May 20, 2016, the Province announced an approximate 25% reduction to the mark-up rates for craft brewers, or $10 million annually. The mark-up rate is the revenue generated by the Province from the sale of liquor products.
- The mark-up rate for microbrewers that produce less than 15,000 hl per year has been reduced to $0.40 per litre.
- The mark-up rate for craft brewers that produce between 15,001 to 350,000 hl was reduced to between $0.41 and $0.99 per litre, depending on production volume.
- The reduced mark-up rate builds on previous provincial efforts to cut red tape and increase supports for the craft beer industry including:
- Microbreweries have the opportunity to showcase their products at their local BC Liquor Stores – even before they’ve proven themselves in the larger marketplace.
- Breweries can access new revenue streams thanks to changes allowing on-site tasting lounges at breweries and beer sales at artisan and farmers’ markets.
- Breweries can also sell other types of liquor in their lounges and special-event areas, allowing patrons to enjoy a glass of wine or a mixed drink while their friends enjoy a beer.
- Government is also taking a closer look at ways to improve the process for getting a brewery licence and exploring a quality assurance program for craft producers to help promote made-in-B.C. beer.
Media Contacts
Ministry of Small Business, Red Tape Reduction and
Responsible for the Liquor Distribution Branch778 678-1572
https://news.gov.bc.ca/13684
