Craft brewers concerned about industry in province
As craft brewers from across Saskatchewan gather in Saskatoon for the YXE Beer Fest, the future of local brewers and their businesses remains in flux. Craft beer production standards are under review by the Saskatchewan Liquor and Gaming Authority (SLGA.)
Industry insiders have noted problems with the current legislation that deals with microbreweries, as well as changes to Alberta legislation that introduced a grant program to Alberta brewers. Premier Brad Wall has criticized the move, saying it would dramatically increase the price of Saskatchewan beer in Alberta stores.
SLGA spokesman David Morris said both governments are working together to find a solution to the problem, but it might not come soon enough.
“Our prices on the shelf are going way up,” said Kari Stenson, president of the Saskatchewan Craft Beer Association (SCBA) and owner of Black Ridge Brewery of Swift Current. “We are thinking about pulling out of Alberta because of it.”
Even if Saskatchewan brewers are able to remain in the Alberta market, they still face problems on this side of the border, which they hope will be addressed in the review. The results were previously set to be released in the spring, but have yet to be issued. Morris said the province expects to announce it in the fall.
“We can’t move forward with our plans until the rules are set in stone,” Stenson said.
The main problem with the current craft brewing system is the yearly brewing limit each producer is required to stay below to maintain the status, and tax bracket, of a microbrewer, she said. That limit is 5,000 hectolitres, or slightly less than 1.5 million standard size bottles.
“A few Saskatchewan-based craft producers indicated to SLGA that they expected to exceed the maximum production thresholds, and that without a change to the threshold they may have to consider limiting production or ceasing sales of their products,” Morris said.
Although Black Ridge Brewery is not currently hitting that limit, Stenson said she believes her business should be there in the next two years; unless the SLGA ups the limit to 20,000 hectolitres, she said it will be hard to maintain quality and production level without losing money.
Through the SCBA, local brewers have been able to pool their resources to create a united vision on what craft brewing in Saskatchewan means, remaining hopeful that the open line of communication they share with the SLGA has helped them get their foot in the door to make the necessary changes.
“It’s tricky to work through all the regulations on craft beer,” Stenson said. “We started out just wanting to make a beer we really enjoyed drinking.”