News out of Alberta and a challenge to the Ontario market

Hello members,

As you may already know, the Alberta government announced yesterday their new Alberta small brewers mark up schedule. This is very good news for the majority of our breweries currently doing business in Alberta or planning to re-look at the Alberta market as an opportunity.

It is unfortunate however that the Alberta government chose to put a fiscal cliff and limit the markup relief to 50,000 hl of worldwide production. Ironically this decision will affect some of our members who challenged this ruling on behalf of all our members. We would like to thank Phillips, Central City, Red Truck, Parallel 49, Whistler and Tree for their efforts from the start of this trade issue for fighting for our members.
Full communication from AGLC below with steps for breweries to apply for markup relief.

In the news: https://www.cbc.ca/news/canada/edmonton/alberta-trade-challenge-ontario-liquor-1.4920948

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Good morning,

Effective December 16, 2018, AGLC will implement a new small brewer markup program for beer sold in Alberta from qualifying small manufacturers. AGLC is informing all registered liquor agencies in the province of these changes; please refer to the attached items for a full description of the markup changes.

Small manufacturers with an Annual Worldwide Production (AWP) of 50,000 hectolitres (hL) or less of beer will be eligible to apply for a reduced markup on beer products (for beer with less than or equal to 11.9% Alcohol By Volume). The exact markup rate that will be applied for each qualifying brewer will be determined by its specific AWP volume; please refer to the attached table for reduced graduated markup rates based on AWP.

In keeping with Alberta’s open and transparent liquor model, AGLC will apply small brewer markup rates to the products of all eligible manufacturers selling in Alberta. To ensure fairness and integrity, interested beer manufacturers will be required to submit an Application and Disclosure Package (attached) in order to qualify for a reduced markup rate. AGLC is requesting sufficient disclosure from brewers to support their declaration of AWP volume. A registered agency in Alberta may wish to coordinate with any small brewer that it is authorized to represent in order to have the supplier return a completed Application and Disclosure Package. Eligible beer manufacturers may submit an application directly to AGLC, or their authorized liquor agency may submit the package on their behalf.

Small brewer markup rates for qualifying manufacturers will come into effect on December 16, 2018. Interested brewers will need to provide their initial application (with a declaration of production of beer for the 2017 calendar year) to AGLC by December 5, 2018. Complete details on how to apply can be found in the attachments provided.

Should you have additional questions, you may submit them to ac.clgaobfsctd-8a0c47@PWA or please contact Jason Derry, Manager, Liquor Program Services, at (780) 651-7665.

Andrea Kicia
Manager, Liquor Product & Pricing

Liquor Program Services, Liquor Services

Phone 780-447-8735   Fax  780-447-8919
Toll Free 1-800-272-8876  Email  anac.clgaobfsctd-33fd7d@aicik.aerd Web aglc.ca
50 Corriveau Avenue, St. Albert AB  T8N 3T5

Interested applicants will apply in a two-step process. The Application and Disclosure Package includes a detailed application requesting corporate and financial information, as well as attachments for the declaration of AWP volumes.

Letter – Registered Liquor Agencies

Application and Disclosure Package – November 26 2018

Declaration of Production – 2017

Declaration of Production – 2018

Small Brewer Markup Schedule – November 23 2018