The markup rate for all small and regional breweries in BC will be slashed by 25% starting July 3rd, according to the BC Government.
The cut will save the industry $10 million per year.
Tom Leboe with Pacific Western Brewing believes the new rules put them on equal footing with the rest of western Canada. “It makes our rates more comparable to the ones in Alberta and Saskatchewan. It basically levels the playing field for smaller breweries like ours.”
Pacific Western Brewing just released their Cariboo Springs Lager in April and Leboe says the new product came at a steep cost under the current system.
“Because it’s all BC and they are all smaller producers it’s more expensive for us to buy these materials, so yeah the new guidelines help.”
Under the new provisions, breweries can access new revenue streams thanks to changes that will allow on-site tasting lounges along with beer sales at artisan and farmer’s markets.
The province will also take action to improve cash flow which will give craft brewers more money to fund payroll, rent, and investments in new equipment.
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