Tax Relief for Alberta’s Craft Manufacturers

Small distilleries and cideries are now able to sell their products from farmers’ markets, artisan markets or their manufacturing facilities at a reduced markup rate. The markup rate will be reduced by $11.21 per litre to $2.46 per litre for spirits and reduced by $1.49 to $0.32 per litre for refreshment beverages, such as coolers and ciders. This will be applied to sales of all products produced by small manufacturers in Alberta. A small manufacturer produces less than 1,500 hectolitres of spirits.

“We believe that Alberta’s small liquor manufacturers play an important role in creating jobs and building a diversified economy,” says Joe Ceci, Minister of Finance. “This program will allow manufacturers to hire staff, expand production and reinvest in their businesses. Alberta produces some of the best agricultural products in the world and these manufacturers work hard to turn them into high-quality spirits. We will continue to work with this industry to ensure they can do business in Alberta as easily and successfully as possible.”

The reduced markup was developed in collaboration with the Alberta Craft Distillers Association and reflects the proportional benefit currently available to estate wineries and meaderies in Alberta. The cost saving for manufacturers will support the growth and diversification of the industry.

“Alberta’s distillers have asked for a reduced markup program and the government delivered,” explains David Farran, president, Alberta Craft Distillers Association. “This means that Alberta’s distillers can more easily grow, expand, hire staff and invest in their businesses. This is not only good for our industry but good for the agricultural sector. Alberta distillers strive to use excellent Alberta agricultural products in our spirits. This program is exactly what our sector needs to grow and to thrive.”

“We believe that Alberta’s small liquor manufacturers play an important role in creating jobs and building a diversified economy,” says Joe Ceci, Minister of Finance. “We will continue to work with this industry to ensure they can do business in Alberta as easily and successfully as possible.”

Markup rates

Spirits                                                                                          

Current markup (40% ABV)                             $13.67 /L

Proposed markup for self-distribution               $ 2.46 /L

Refreshment beverages (ciders & coolers) 

Current markup (<8% ABV)                               $1.81 /L

Proposed markup for self-distribution               $0.32 /L

Current markup (>8% ABV)                               $4.51 /L

Proposed markup for self-distribution                $0.81 /L