Craft breweries in British Columbia will benefit from increased revenue thanks to a reduction in the mark-up rate for their products. the mark-up rate is the revenue generated by the provincial government from the sale of liquor products.
The mark-up rate reduction comes into effect on July 3, and will reduce the mark-up by approximately 25 per cent per litre.
“These changes further improve mark-up rates for craft beer that were announced last year when government introduced the new wholesale pricing model, support small businesses in British Columbia and will enable craft breweries to create jobs while increasing the availability of high quality, made-in-B.C. products,” says a government press release.
The government has also pledged to change B.C. regulations so craft breweries will no longer have to remit their revenue to the Liquor Distribution Branch before the mark-up is applied, improving their business model.
Increasing cash flow will give brewery owners more money to grow their businesses by hiring new staff and purchasing new equipment.
Craft brewing is already one of B.C.’s fastest growing industries, ballooning from 54 breweries in 2010 to 118 in 2015. There has been a 35 per cent increase in the amount of craft beer produced in B.C. over the past year. The provincial government says this is a result of their efforts to cut red tape and increase supports for the craft beer industry.
“This is a treat for everyone involved in the brewing business. It will lead to more money in our pockets,” said Stu Bradford, owner of the Barley Station Brewpub.
Along with Barley Station, Crannóg Ales in Sorrento will also benefit.