Craft brewer wants to be able to produce more beer
Rebellion Brewing in Regina is calling for the province to move forward with a craft brewery strategic plan.
The brewery applauded most of the findings in a recent review of the industry orchestrated by the Saskatchewan Liquor and Gaming Authority (SLGA), and is hopeful the province soon moves on recommendations found within that report.
“We literally just need government to make some changes to their policy and let us get to work,” said Mark Heise, vice-president and brewmaster at Rebellion.
Craft brewing in Saskatchewan — and elsewhere — has grown significantly over the past six years. Overall, the craft alcohol industry has grown 202 per cent since 2001. The total revenues of the Saskatchewan craft alcohol industry in 2014 are estimated to have been $13.3 million.
Despite that growth, there is still a cap on how much beer craft brewers can produce while still being considered a craft brewer. Heise wants to see that change. “We want to be able to produce more beer,” he said.
Without that ability, he said Rebellion “cannot grow” to its full potential.
The unexpectedly rapid growth in the industry is one reason why there is no strategic plan — or provincial framework — to allow the sector to grow.
Heise said Rebellion was consulted on the SLGA report and hopes to work closely with the province as it puts a strategic growth plan in place.
“You need industry to come forward,” he said.
The SLGA review, which was released earlier this month, shows as the system stands now more craft beer sold equals a loss of markup revenue to the Crown corporation. That is because it offers craft brewers reduced markup rates, extra retail options and marketing support.
“I would say the economic benefit far outweighs that,” said Heise, pointing out craft brewers have the potential to generate hundreds of millions of dollars in business if they are allowed to grow.
Most of the company’s ingredients are sourced from Saskatchewan, and Heise said its profits stay in the province and generate employment.
Despite its desire to make and sell more beer, Heise said there are no plans to expand Rebellion outside of Saskatchewan.
“We don’t really view it as important or really critical to success,” he said.
SLGA Minister Jeremy Harrison said earlier this month that changes related to the province’s craft beer industry are expected later this fall.
On Tuesday, the province confirmed those changes are still coming later this fall — likely after the legislative assembly begins meeting again on Oct. 19.
It is still to be determined what, if any, impact those changes will have on an ongoing price markup dispute between Saskatchewan and Alberta.
Provincial leaders in Saskatchewan were critical of a new beer tax being introduced in Alberta when it was announced in July, and Premier Brad Wall hinted punitive measures could be used in retaliation.