What has the BC Craft Brewers Guild accomplished that BC craft breweries just opening or breweries that are currently operating, benefitting from?
As we continue the recovery process from the last 3 years we are proud of the work all of us accomplished in 2022 and 2023
In 2023 we are focused on:
- An excise tax win! The government announced they will cap the excise at 2% this year instead of the proposed 6.3%. They did not commit to the removal of the escalator tax altogether but did bend to the pressure given the current rate of inflation.
- Excise Tax Reform for Canadian Craft Breweries – On February 9 the Canadian Craft Brewers Association (CCBA) ) in collaboration with the Coalition of Independent Craft Brewers submitted our proposal to the Federal Ministry of Finance pre-budget committee to reform the Excise Tax Act to better benefit our membership. Here is the submission. This will continue to be a primary focus of our federal advocacy plan for the CCBA and the 2024 federal budget.
- The 2023 wage survey was released to our members in February with results tabulated and available as of May to complement last year’s initial survey.
- Low-Risk Drinking Guidelines – Our position continues to be that we support the responsible consumption of craft beer, and we support evidence-based measures to address harmful drinking. We were part of an industry sector-led response expressing our concerns regarding the report from the Canadian Centre in Substance Use and Addiction (CCSA) proposed guidelines for Low-Risk Drinking Guidelines (LRDG) and the role the province is playing in the Proof campaign. Here is the Business Technical Advisory Panel (BTAP) letter to Premier Eby and senior cabinet ministers (Minister Freeland)
- Canada Emergency Business Account (CEBA) loan – On May 24 the BC Craft Brewers Guild along with the other provincial associations on the BTAP committee co-signed a letter to Federal Finance Minister Freeland expressing our unanimous support for Restaurant Canada’s proposal to extend the deadline on CEBA loan repayment due December 31, 2023. We are advocating for the following 2 proposals to ensure that the hospitality sector continues to play a major role in a strong economic recovery,
- Extend the CEBA repayment deadline by at least 36 months to ensure that debt repayments do not undermine industry profitability in the short term,
- Implement a “scale-down” model of the forgivable part, decreasing by five percent every six months.
- Inducement Roundtable – In the spring of 2023 the Guild initiated a roundtable of 8 member breweries with Chloe Smith acting as chair to review, identify and propose amendments and clarifications to the current inducement policy. The goal of this committee is to determine a path forward to recommend to the government changes to the current policy to clearly define what is acceptable customer support from manufacturers to licensees and what business practices are not permitted under the Inducement policy.
- BTAP Refresh 2023– In May the Guild presented 3 current priorities as part of an update and refresh of the BTAP committee’s continual collaboration with the government, BCLDB, and the BCLCRB.
- Review and modernize the LDB pricing and approval process
- Review the impact of worldwide production volume on markup for BC breweries
- Modernize the Tied House rules and increase the current policy from 3 to 10.
- RoundTable at City Hall on Liquor/ Hospitality Issues in Vancouver – The BCCBG is part of a task force including BCRFA, Restaurant Canada, BC Hotel Association, and ABLE BC working with various departments at City Hall and senior managers in planning and licensing to expedite and remove red tape pressure points. This collaboration is focused on expediting structure improvements and capacity/licensing issues that delay the hospitality and manufacturers in Vancouver with excessive bureaucracy.
- Updating our Guild Bylaws – A separate special members-only meeting will be held virtually this summer to approve the updated bylaws for the Guild members and the board. The bylaws were last updated in 2019.
- BC BEERCON 2023 October 19 & 20 and Annual General Meeting –This year’s conference will be held at the Anvil Centre in New Westminster.As 2023 is a board election year the AGM will take place at our AGM on October 18 2023 as part of the BC Beer Conference
2022 Top Highlights
- The 2022 Anti-Harassment, Diversity, Equity, and Inclusion Code of Conduct and Members Handbook available to all members was launched.
- 2022 Wage Compensation Survey results made available to all members.
- The 2022 LDB Finance Audit Process was implemented after our direct consultation with BCLDB to review their auditing process, including record keeping, education, and penalties program. Our advocacy work resulted in a complete review of their process and a new more industry-friendly approach.
- BC Craft Brewers Conference held in New Westminster. Over 500 were in attendance with nearly 70 suppliers at the sold-out trade show. Our seminars were recorded and are available to watch on our YouTube channel.
- #NotMe Program initiated a preferred membership program with to provide an ethical system that fosters corporate integrity and helps organizations manage and mitigate risks while building trust with their people and creating safer workplaces.
- Global Public Affairs Continued advocacy representation with focuses on Municipal, (patio process and split tax policy) Provincial (tied house, Inducement, and permitting process), and Federal Advocacy (Labelling, Excise Tax Reform, and Low-Risk Drinking Guidelines).
- BC Ale Trail – continued expansion of itineraries to include new breweries and ancillary partners, enhancements to the mobile app, a robust digital marketing campaign targeting audiences in BC, Alberta, and Washington, refreshed photo and video capturing improved diversity and seasonal dispersion, and the targeting of new audiences via sector partnerships and new campaigns.
PAST ACCOMPLISHMENTS
TAXATION
In 2015 the BC Craft Brewers Guild successfully lobbied the government to change the wholesale taxation model. We negotiated a 25% to 27% reduction in the markup for all BC craft breweries under 350,000hl. This ensured our products remained profitable in all retail channels compared to other products, which saves breweries hundreds to thousands of dollars per year.
In 2015 the Guild lobbied the government to change it so breweries only have to submit the tax remittance due for their product produced, instead of paying 100% upfront and then having to wait for the rebate less tax. This means more cash in our members’ pockets by increasing cash flow and realigning the payment to the supplier model. This revenue allows members to increase their infrastructure more rapidly than before the change.
The Government of BC announced on January 17, 2019, that they will be introducing legislation this spring that will give municipalities the ability to provide property tax relief to small businesses and organizations that they identify as paying high property taxes. The proposed legislation would apply to the 2020 tax year and be in effect for a maximum of five years. We have been tracking this since last July and have engaged with the Minister of Municipal Affairs and Housing on this specific issue. While this will not be a final solution for some of the overhead and taxation challenges faced by BC Craft Brewers, this is an important first step.
As an organization, we will again be engaging with the City of Vancouver and its Intergovernmental Working Group along with the Province of BC to ensure our views are represented in the new legislation and will continue to advocate for a permanent province-wide solution. If you would like to reach out to your local MLA to express your support for this legislation, please let us know and we can provide you with contact information and resources.
LIQUOR POLICY
In 2015 the Guild successfully lobbied/negotiated with the provincial government to have the volume thresholds removed that acted as barriers to the growth of the BC craft brewing sector. Previously the volume thresholds were at 15,000 hl, 160,000 hl, and over 350,000 hl. When a brewery crossed past these thresholds they were taxed on the entire volume, not a tiered system where tax under 15,000 hl was at one rate and over 15,000 hl was at a new tiered rate. This policy acted as a deterrent to growth for our largest members.
Forwarded the recommendation to “Buy Local” as a Regional Showcase for BC craft brewers in Government Liquor Stores. Breweries under 100,000hl are now allowed unlisted products in BCGLS stores across the province. This has resulted in over 2300 new BC craft beer listings and allows members regional support in their closest GLS stores. The current market share for BC craft beer in the province is 30%; this is the largest share in the province.
Growler stations: Secured exclusive rights for breweries to sell their beer in growlers, and not in liquor stores or elsewhere. This results in traffic flow to both the brewery and the community the brewery is located.
Removed the barrier restricting our breweries to sell other manufacturers’ products (wine, spirits, and ciders) at their location.
Ensured craft breweries could participate in farmers’ markets and artisan fairs to support local economies throughout the province and drive awareness of the Buy BC Program.
Successfully lobbied the government to relax the rules for breweries and distilleries operating on Agricultural Land Reserve lands putting them on an equal footing with wineries and cideries. We will continue to work with the government towards their agricultural program: Grow BC, Feed BC, and Buy BC.
The BC Craft Brewers Guild was part of a nine-member Business Technical Advisory Panel that met in the Spring of 2018 to review and recommend industry stakeholder concerns to improve the efficiency and outcomes in government and business interactions with respect to liquor regulations and policy. The report resulted in 24 recommendations for the Government to act on in 2019. BTAP Report 2018-04-30 Final copy
Our consultation with BCLDB and BCLCRB regarding member input into Contract Manufacturing resulted in the industry stakeholder’s survey to define upcoming regulations regarding worldwide production volumes and contract manufacturing on-site and off-site.
We are currently working with all provincial associations to establish a baseline implementation approach to fulfilling the traceability requirements being implemented in July 2020 by the Canadian Food Inspection Agency under the Safe Food For Canadians Regulations.
PROVINCIAL GOVERNMENT RELATIONS
In fall 2018 we hired Global Public Affairs to manage our lobbying efforts. Global has worked with our members on four major consultations with members and the government.
- Declaration of Brewery volume to include contact manufactured volume and worldwide production volume of partners – Implemented by LDB on April 1, 2019.
- Minimum Markup Requirements on Production and Equipment – Resolution expected Spring 2020.
- Contract Brewery Blended Markup – Submitted to Minster Eby – December 2019.
- On-Site Store Endorsement – Submitted December 2019 to LCRB.
- Business Technical Advisory Board – Formed in 2018 at the request of Minister Eby. The cross-industry panel including Ken Beattie submitted 24 recommendations for industry change. Positive negotiations and progress made in the Fall/Winter of 2019 with expected announcements in the Spring of 2020. Don Farion was also invited to advise on the final negotiations.
COVID-19 SUPPORT and RESPONSES
Covid-19 required the industry to pivot 360°, and the Guild worked with a variety of organizations and lobbied for the industry to help them through this challenging time.
- Outdoor temporary patios for breweries that in the past were not eligible, with an extension into 2022
- Curbside service of meals and products from breweries
- Home delivery or pick up of craft beer with the sale of a meal from Restaurants and Pubs
- Provincial and federal financial support program aid
- Hospitality pricing for our customers owning Pubs and Restaurants
- Complied and circulated to our members the BCCBG COVID-19 Handbook
OTHER GUILD NEWS
At the 2021 AGM, a new seven-member board was elected for a two-year term and our members voted on our revised 2019 Bylaws.
The Guild has continued to welcome new breweries members (including members in progress), bringing our total membership to over 230 independently owned and operated breweries in BC.