B.C. Increases "Hopportunities" for Craft Brewers
20 May 2016 --- As British Columbia continues to grow its reputation as the craft beer capital of Canada, craft brewers in every corner of the province will now benefit from an additional $10 million a year in economic support thanks to a significant reduction in the mark-up rate for craft beer products.
Effective July 3, 2016, the mark-up rate for small and regional breweries will be reduced by approximately 25% per litre, meaning that craft breweries will have increased financial capacity to grow and expand. 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.
The Province will also take action to improve cash flow for craft brewers, meaning they will have more money to fund payroll, rent, and investments in new equipment. Craft breweries will no longer be required to remit all of the revenue from the sale of their products to the Liquor Distribution Branch before the mark-up is applied.
Government’s support for innovation and entrepreneurship in B.C.’s burgeoning craft beer industry is in direct response to feedback government received from British Columbians and industry through the Liquor Policy Review and wholesale pricing consultations. The reduced mark-up rate builds on previous provincial efforts to cut red tape and increase supports for the craft beer industry. These measures have resulted in a 35% increase in the amount of craft beer produced in B.C. over the last year.
