- As of November 2016, 35 craft distilleries and 19 commercial distilleries were operating in B.C.
- The number of craft distilleries in B.C. has grown considerably the past few years – from four in 2010 to 35 today. The biggest increase occurred in March 2013 with 26 new craft distilleries beginning operations.
- The volume of craft sprits produced in B.C. grew almost 400% between 2013 and 2015 (LDB data):
- 2013 28,984.5 litres
- 2014 100,024.7 litres
- 2015 138,962.2 litres
- In 2013, the Liquor Distribution Branch updated its craft distillery policy, revising the qualifying criterion and providing additional markup relief to help grow the industry in B.C.
- Under the new policy, the qualifying criteria became:
- distilleries must use 100% B.C. agricultural inputs in the production of all products;
- the threshold to have full markup relief was raised to 50,000 litres;
- a graduated markup was introduced for B.C. craft distilleries that have an annual production between 50,001 and 100,000 litres;
- product must be fermented and distilled onsite using traditional distilling techniques;
- the distillery must not use any commercially produced neutral grain spirits; and
- the distillery must not produce spirit-based coolers or other highly processed products.
- Distilleries that qualified as craft receive the following benefits:
- They may sell and deliver products directly to specified wholesale and hospitality customers.
- Those producing less than 50,000 litres annually no longer have to remit markup on all direct sales.
- In 2013, markup was 163% of supplier cost; under wholesale pricing the markup is 124% of supplier cost.
- Benefit increase from 2010 was very large.
- Additional benefits for both craft and commercial distillers include:
- In 2013, distilleries were permitted to apply for lounge and special event area endorsements to serve and sell their own liquor (more than sample sizes).
- In 2015, distilleries that have lounges or special event areas were permitted to sell up to 20% of liquor not produced on-site. This was especially important for distilleries because it allowed them to showcase their liquor in a more expansive list of cocktails.
- Distilleries may also sell product direct to the public from their licensed distillery if they operate an on-site store. If they have an on-site store, distilleries can apply for an authorization to sell at farmer/artisan markets.
- Additional benefits for commercial distillers include:
- Commercial distilleries (and the one hybrid distillery) receive a commission on the direct sales from their store, equal to 7% of the product’s wholesale price.
https://news.gov.bc.ca/13682
Office of the Premier
