Breweries’ guild launches campaign to ‘demand fairer tax system’

FORT ST. JOHN, B.C. — Brewers in the Peace region have joined the fight for B.C. craft beer in the battle against tax inequality.

Dawson Creek’s Post and Row Eatery and Brewing and Fort St. John’s Beard’s Brewing and Mighty Peace Brewing are members of the BC Craft Brewers Guild, an association of 219 microbreweries around the province.

The association launched a ‘Protect B.C. Craft Beer’ campaign on Thursday, July 31st in an attempt to what it says is “rallying beer lovers across the province to demand a fairer tax system that stops favouring foreign-owned beer conglomerates and instead supports B.C.’s craft breweries.”

It says the province’s “outdated tax structure” gives large beer conglomerates an estimated $9 million in tax rebates – totalling $60 million in rebates in the last decade.

In a statement to Energeticcity.ca, the province’s Liquor Distribution Branch (LBD) said the $9 million is just 5.5 per cent of the total contributed to government revenue by the three largest breweries.

LBD also said the current system introduced in 2015 will be reviewed, it recognizes the industry’s concerns and it knows the importance of microbrewers.

Clay Drouin, founder and principal owner of Post and Row Eatery and Brewing, has operated the restaurant for the past five years with co-owner Tallyn Wittal.

The establishment, which was commissioned as a brewery in 2023, employs 40 people and is open year-round.

While Drouin says the brewery is “just a small operation in the north,” he recognizes the best way to grow his business is through “consistency in product and service.”

“[I] think the head winds are not just limited to independent breweries but every business in the food and beverage industry and beyond,” wrote Drouin in an email to Energeticcity.ca. “Inflation, interest rates, labour costs, cost of goods, property taxes, carbon tax and other taxes.

“Everything has gone up and is not stopping. Margins are very tight and you have to have a vibrant and robust business to keep ahead of things.”

Drouin estimates a microbrewery start-up today might cost as much as $2-3 million based on a variety of factors, adding he’s not sure “why anyone would want to start a restaurant or brewery in this economic environment.”

He senses there might be a retraction in microbreweries without the tax breaks large-scale breweries receive.

“It’s a great moat for places doing well and established but a great barrier to enter,” said Drouin. “Likely 10-15 more may close and/or get bought up by bigger operations.”

However, Drouin sees his project as a great opportunity to meet the community, to share stories, and enjoy great suds, saying you need to “check all the boxes” in order to do well.

“If you have a strong business model and a little timing and luck on your side, you can position yourself to succeed,” said Drouin. “In short, regulate us less, tax us less, let us keep our hard-earned money and we will in turn be able to re-invest in our communities – further creating jobs and stimulating our economies.”

The campaign encourages fans of craft beer to reach out to their local MLAs, with the campaign site offering a sample letter urging the government to bring about tax reform to help microbreweries.

The LBD told Energeticcity.ca it acknowledges B.C.’s craft brewing industry’s contributions to “local economies, communities and job creation.”

“We recognize the concerns raised by the BC Craft Brewers Guild and remain committed to reviewing the current beer mark-up structure,” wrote the LBD’s communications department to Energeticcity.ca.

“The review was initiated last year and included extensive consultation with the B.C.-based brewery sector which identified the current mark-up structure as a priority for B.C. craft brewers.”

However, the review has been “temporarily paused” while the LDB works on the province’s response to the threat of U.S. tariffs. 

The LBD also stated the three largest breweries that operate in B.C. do receive rebates in relation to their beer produced and sold in the province but are also subject to significantly higher mark-up prices than smaller breweries. 

It said mark-up collected from liquor sales is an essential source of government revenue.

Further details about the ‘Protect B.C. Craft Beer’ campaign can be found on the B.C. Craft Brewers Guild’s website.