Local microbreweries, together with MLAs, are raising a glass to a lower mark-up rate for small and regional brews as of July.
Effective July 3, the rate will be reduced by approximately 25 per cent to give craft breweries increased financial capacity to grow.
The latest change builds on lower mark-up rates for craft beer that were announced last year when the province introduced a new wholesale pricing model. It means an estimated $10 million in annual savings for craft brewers. As well, they are no longer be required to remit the supplier price of their products to the Liquor Distribution Branch, which should improve their cash flow.
Kamloops is home to three microbreweries — Noble Pig Brewhouse, Red Collar Brewing and Kamloops Brewing.
“Red Collar is happy to see these progressive changes, especially in the reduction of red tape,” said David Beardsell, owner of Red Collar Brewing, who sees potential for future expansion and employment stemming from the changes.
“With three microbreweries established here in Kamloops and potentially more on the way, this announcement is great news for this thriving industry,” said MLA Todd Stone said. “Craft brewing in our province is growing by leaps and bounds and these changes will help ensure this growth continues.”
B.C.'s craft beer industry has seen exponential growth over the past few years, increasing from 54 in 2010 to 118 breweries in 2015. Up to 20 new breweries are on the horizon.