on the coast
my notes from last night's beer column on cbc radio one's on the coast:
and we're back with more liquor law news this week.
alas, this time
it is not good news for beer lovers in the province
Paddy Treavor, CAMRA Vancouver’s last President said in his beer blog: “I cannot see how some of the nano-breweries, who rely on growler sales as part of their business plan, would have any choice but to raise their retail prices eventually. This increased markup, which really only impacts craft breweries (how many growlers of Molson Canadian do you see out there), shows once again that the government is not being very supportive of the craft beer industry as they continue to make it difficult for these smaller breweries to operate, be profitable and grow. “
and we're back with more liquor law news this week.
i talked about
some new liquor laws last show. i was very excited about the loosening of the
tied-house rule and cautiously optimistic about the opportunity for breweries
to apply for tasting rooms and special event venues. it looked like the
province was finally making some positive changes to archaic and overly
restrictive liquor laws - most of which hadn't changed significantly since the
repeal of prohibition.
alas, my joy was
short-lived. i am still happy about the progress made, but we seem to be in a
one step forward, two steps backwards situation.
Rich Coleman and
the BC Liberals, through the BC Liquor Distribution Branch, have decided that
they need to collect even more tax on craft beer by increasing the markup on
Growler fills. There is still a lot of confusion around this change though. Paddy
Treavor (beer blogger about town and past-President of CAMRA) has spent a whole
lot of time and effort corresponding with the Liquor Distribution Branch to get
the details of the taxation change. What he has found out has been news to many brewers , (see Rebecca of Crannog Ales' Facebook post yesterday) and it would appear that current rules have not been evenly applied.
But first, an ode to the growler to ensure that we all understand what i'm
talking about here, and what the big deal is.
i have spoken
previously about growlers, those wonderous 2 litre vessels that you can take to
a brewery or brewpub to get filled and then take them home, or to a party, to
consume. currently you can purchase growlers and get them filled at four
establishments in vancouver , steamworks,
yaletown brewpub, parallel 49 and powell
street brewery, plus central city in surrey and
bridge brewing in north vancouver .
opening in 2013 will be several other locations for growler fills.
what's so special
about buying your own big glass bottle and taking it to be filled at a brewery?
and how did growlers get their name?
Growlers are
glass jugs which hold 1.89 litres (64 fl.oz) of beer, which is slightly under
six bottles of beer.
-
Growlers are environmentally friendly
as the bottle can be refilled again and again rather than being recycled
- Growlers cut the mileage that your
beer needs to be transported – reducing the carbon footprint
- Growlers are filled with fresh beer
- getting your growler filled enables
you to engage with the people who have made your beer, sometimes even the
brewer themself
- access to seasonal and special
releases that might not make it to liquor stores.
- Growlers are a great size for sharing, especially for taking to parties
- Often filling a growler is less expensive than buying bottles or cans at the liquor store
growler culture
is on the rise in all over - i introduced my mother to the joys of growlers in
the Fall when I was in Ontario
and she is now addicted! With the increasing popularity of growlers and the new
liquor laws that came into effect on friday which in theory allow for more
breweries to offer growler fills, the government sure picked an opportune time
to increase taxation.
So, what is this new taxation rule?
So, what is this new taxation rule?
Paddy Treavor confirmed with the Liquor Distribution Branch that currently, when you make
your first growler purchase, the brewery pays the LDB the packaged cost
per-litre markup. Every fill thereafter is considered as draught and the
brewery pays the LDB the lower draught rate. For most craft breweries in BC,
who fall in the 15,000 Hectalitre and less category, the first growler fill, is
currently marked up $1.04/L (packaged), which totals $1.87 per growler ($1.04/L
x 1.8). Subsequent fills, are then marked up at $.72/L (draught) totaling $1.30
($0.72/L x 1.8), $0.57 less than the original purchase. Under the new rules,
which come into effect in April, all growler sales will be marked up at the
higher, packaged price, no matter if it is the first sale or the 100th refill.
That means smaller breweries, under 15,000HL, will be charged the extra $0.57
on refills, a 30% markup increase. With some breweries averaging close to 1,000
growler sales some months, this increase quickly begins to add up to big dollar
amounts. But does the brewery eat that increase come April? Or will they risk
upsetting their customers by passing along the increase to them?
CAMRA Vancouver
has launched a campaign to "Save the Growler". The campaign features
a petition to the provincial government "to remove the discriminatory new
"Growler Tax" on craft beer". You can sign the petition on their
website, camravancouver.ca, in its first 24 hours the petition attracted 200
signatures, and by the time you hear my voice, the number will be at 700 in only five days.
While a 57 cent
difference doesn't sound like a lot, it is just another increase in the cost of
fun in Vancouver .
While I don't think this is on a scale with homelessness, clean water or
pipelines, I do think it is important to take a stand against taxes that will
affect small businesses in our community. Governments should be finding ways to
build communities rather than finding new ways to tax us all. So I encourage
you to sign CAMRA's petition.
Adam Chatburn,
President of CAMRA BC – Vancouver Chapter said, “The fact that this tax targets
smaller craft brewers who have invested heavily in growlers and growler filling
equipment is particularly unfair. It’s hypocritical for a government purporting
to support green initiatives to punish consumers and small businesses for
pursuing environmentally responsible behaviour.”
Paddy Treavor, CAMRA Vancouver’s last President said in his beer blog: “I cannot see how some of the nano-breweries, who rely on growler sales as part of their business plan, would have any choice but to raise their retail prices eventually. This increased markup, which really only impacts craft breweries (how many growlers of Molson Canadian do you see out there), shows once again that the government is not being very supportive of the craft beer industry as they continue to make it difficult for these smaller breweries to operate, be profitable and grow. “
Beer Picks:
Driftwood
Brewing's 20 Pounder double IPA is back. you can get it in 650ml bottles at
specialty liquor stores, and on cask and tap at several beer joints around
town, but hurry, its a limited release. 9%
Gigantic
Brewing's The End of Reason - this is a belgian-style petit quad and its 8.3%,
available on tap at St. Augustine 's
and in bottles at specialty liquor stores
both of those are
big beers and limited releases, so get them quickly, but drink them slowly!
and for St.
Patrick's day, how about Russell Brewing's Luck of the Irish - a red malt forward beverage perfect for celebrating all things Irish
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