Supporting Alberta’s Craft Liquor Industry With Fair AGLC Markups for Small Producers

Issue

The current Alberta Gaming and Liquor Commission (AGLC), Markup Rate regime provides access for Alberta’s craft breweries to the Connect Logistics Services alcohol distribution system at a reduced rate. Alberta’s Craft Distillers and Wineries/Meaderies are not extended this support, putting small scale industry at a competitive disadvantage. 

Background

The craft distillery business represents an exciting area of growth throughout North America. The lure of diversifying local economies has led many jurisdictions to create distillery friendly regulations and tax relief to attract entrepreneurs. This has led to the establishment of over 700 new North American craft distilleries in the past decade, including 60 in Canada. Alberta is home to nearly 30 producers. The past fifteen years has also seen rise to a cottage fruit wine and mead industry that is ready to expand its horizons. 

Our Recommendations

1. Invest in Innovation and Diversification, building on areas of growth in Alberta’s economy in energy, tourism, transportation, health and life sciences, agriculture, technology, and services. 
2. Foster skills development and labour attraction by reducing trade and mobility barriers, investing in training, promoting the province to national and international audiences, and supporting the vibrancy of our communities. 
3. Improve community safety and well-being to provide supports appropriate for Albertan’s needs, including supporting adequate shelter spaces, investing in solutions across the housing spectrum, continuing to address the drug poisoning crisis, and investing in health care and policing. 
4. Plan for responsible fiscal management by: 
   1. Adopting a concrete fiscal plan to ensure surpluses are invested in Alberta’s future. 
   2. Appointing an independent panel of experts to review Alberta’s revenue sources, including a review of current and potential sources of revenue. 
   3. Publishing a report annually on the long-term fiscal health of the province forecasting at least twenty years into the future, including enduring performance measures and tracking. This should include: 
      1. Expected demographic changes that will impact on the economy and/or the provision of government services. 
      2. Projected changes related to Alberta’s major industries and the Canadian economy.