Alberta craft beer grants will likely keep prices the same: association
Restaurants and consumers were worried craft breweries would pass markup costs onto them
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Beer prices for at least two Alberta brewers will remain bubbly for consumers, as they plan to use the government’s grant to offset the newly implemented mark-up.
Last week, the government said small brewers will get up to $20 million a year in grants, helping offset a hike in the markup on all beer sold in Alberta.
The markup, which the government announced in early July, plans to charge the same $1.25 per litre beer markup for all beer by August 5, regardless of the size of the company or where the beer is made.
The move caused a stir among restauranteurs and some consumers, who said brewers would transfer mark-up costs to them.
Terry Rock, executive director of the Alberta Small Brewers Association, said on Monday it’s up to craft brewers if they want to up prices or keep them the same.
“There is no reason they would have to,” Rock said. “Without the grants they probably would’ve had to. It’s completely up to them how they handle their pricing.”
Dan Allard with Cold Garden, a new brewpub in Inglewood, said the company intends to solely use the grant to offset markup costs.
“Our prices won’t be changing for customers even though we’ll be paying more for the markup,” Allard said. “Even with all these changes they’re making, nothing is really changing at the end of the day.”
Last Best Distilling and Brewing’s Chad Salyn also said the company won’t be increasing prices for consumers.