Beverage Remittance Model Reform

Issue

Provincial liquor remittance model reform is needed to streamline how small liquor manufacturers, particularly those classified as Class E, report and remit payments related to the sale of their products.

Currently, the system lacks consistency with various carve-outs for interprovincial trade including the sale of wine between Alberta and British Columbia, Board-to-Board transfers and Interprovincial Direct-to-Consumer options. A reform of liquor sales could streamline and optimize efficiency and opportunity within the industry.

Background

Under the existing system Class E small manufacturers (like craft breweries or distilleries) can sell directly to consumers or other licensees through their own licensed premises. These sales are processed through a consignment model managed by the Alberta Gaming, Liquor and Cannabis Commission (AGLC).

Recommendations

The Alberta Chambers of Commerce recommends that the Government of Alberta:

1. Allowing Class E Manufacturers to collect the full wholesale price directly from buyers within Alberta and across Canada and report and remit only the markup, GST, and other applicable fees to AGLC.
2. Providing the ability for Class E manufacturers to transport directly to a buyer or to a warehouse distribution centre in Alberta or other provinces using the remittance model for payment of any markup, taxes and applicable fees.
3. Consulting with industry on the definition for small-scale producers and progressive tax rates that encourage scalable growth without being penalized once they reach a certain level of production.
4. Implementing harmonized pricing and markup rates for Class E Manufacturers with easier options for invoicing, payment processing.