Cheers to liquor reform
Let’s raise a glass to the provincial government for taking another step toward modernizing Saskatchewan’s liquor laws by reviewing policies that shackle the growth of the local craft alcohol industry.
Having determined that adults can be trusted to take home an open bottle of wine from a restaurant, that people so inclined should be allowed to enjoy a drink at a venue where nearly nude dancers perform and that the sale of booze at private stores doesn’t lead to moral decay, the government is responding to the call by the province’s brewers and distillers for more freedom to showcase their wares and expand production.
Even though liquor and gaming Minister Don McMorris says the intention of the review is to balance the concerns of other stakeholders and the provincial treasury with policy changes that support the industry, obviously this is a case where the current rules economically hurt Saskatchewan.
Steve Cavan, president and brewmaster of Paddock Wood Brewing Co., told the StarPhoenix in November he can sell a case of beer in Alberta to a private retailer for about $60 to $66. However, Saskatchewan’s rules require him to sell the case for $30 to the government’s wholesaler SLGA, which then marks it and resells it to retailers.
While he is allowed to sell directly to restaurants without the SLGA markup, his inability to sell directly to retailers such as off-sales or outlets such as the Co-op and Sobey’s liquor stores without using SLGA as the middleman means a big hit to his bottom line and his ability to maintain production and employment at the brewery.
For Living Sky Winery owner Susan Echlin, SLGA’s markup of 67 per cent means it makes far more business sense to market her product directly through private outlets in Alberta. Instead of wholesaling a bottle to SLGA at $10, she can sell for $15.99 to the retailer. Another irritant is the production limit of 45,000 litres imposed on her ‘cottage’ category winery.
Whether it’s making consumers refill their two-litre ‘growlers’ only at a brewery or brew pub instead of a tavern or restaurant, or production thresholds and a markup structure that hampers the growth of brewers, distillers and wineries whose excellent products are attracting consumers looking for a tasty alternative, the current regulations are a hindrance.
What the public treasury may lose by way of current SLGA markups on locally made liquor products would be offset by way of taxes on companies and employees, the higher volumes produced and sold. The greater exposure through government and private stores also would drive up demand for local products.
Starting with its announcement of a temporary increase in the production limits for craft alcohol manufacturers, the government seems to headed in the right direction.