The Saskatchewan government is changing its beer markup structure in a move aimed at helping small and medium-sized breweries scale up production.
The province announced Friday that markup rates will be reduced across most production levels to create a more gradual increase in cost as breweries grow. The qualifying threshold to access these reduced rates will also rise — from 400,000 to 500,000 hectolitres of annual production.
“Small and medium-sized breweries employ many people locally and are a source of pride for Saskatchewan and across Canada,” said Alana Ross, minister responsible for the Saskatchewan Liquor and Gaming Authority. “Encouraging them to grow is particularly important in a time where consumers are increasingly interested in supporting Saskatchewan and Canadian businesses.”
Markup rates are applied to all beer products sold in the province, whether distributed through the Saskatchewan Liquor and Gaming Authority (SLGA) or third-party warehouses. The rates affect beer made in Saskatchewan, across Canada and internationally.
The new structure has been shared with industry stakeholders, including producers and distributors, and will take effect July 1.