Price of wine set to go up in Alberta with new 'value added' fee

Colleen Underwood · CBC News

· Posted: Mar 04, 2025 6:20 PM EST | Last Updated: March 4

The terms of a vessel of vino successful Alberta is acceptable to spell up aft April 1.

The Alberta authorities announced changes to its liquor markups successful the caller budget, with respect to vino only, saying it will  "address manufacture concerns, amended equity wrong the system, and enactment the maturation of Alberta's liquor manufacturing industry."

The state says the flat rate for vino is going up different 15 cents per 750 ml bottle.

And it's creating a new ad valorem, oregon "value added" fee, that volition spell up arsenic the terms of vino goes up, connected apical of the level fee.

For example, according to the province, a $25 750 ml vessel of vino volition outgo different 20 to 40 cents, but a $50 750 ml vessel of vino volition outgo anyplace from $2.80 to $3.25 more.

These changes came arsenic a astonishment to immoderate Calgary vino merchants who accidental they interest astir lawsuit backlash.

"If the terms goes up a subordinate oregon 2 a vessel connected somebody's favourite vino ... we conscionable similar it to beryllium precise wide that this is taxation by different sanction and is thing we're conscionable having to walk on," said Richard Harvey, co-owner and laminitis astatine Metro Vino.

As portion of the province's backstage liquor retail model, Alberta Gaming Liquor and Cannabis (AGLC) charges a markup to liquor products sold successful the province. The wealth goes into provincial wide revenue.

In the lawsuit of wine, the importer pays the markup, and past typically passes it connected to the retailers, who past walk it connected to the consumer.

"Basically it [wine] is going to spell up successful price, is what it comes down to, and it's going to beryllium reflected connected what customers wage erstwhile they travel successful done the door," said Ivonne Martinez, president of the Alberta Liquor Store Association. 

Since privitatization successful the aboriginal 1990s, the markup has been a level complaint based connected the percent of intoxicant per volume. 

This is the archetypal clip a markup has been created that is based connected the terms of liquor.

Here's a speedy breakdown of the caller markup:

• 5 per cent connected wines priced greater than $15 but nether $20 per litre.
• 10 per cent complaint connected wines priced greater than $20 but little than $24.99 per litre.
• 15 per cent complaint connected wines priced greater than $25 per litre.

Martinez says she doesn't recognize wherefore they are targeting vino and wherefore the Alberta authorities analyzable the system.

"We were rather shocked by it," said  Martinez. "Now this is going to adhd other reddish portion and it's going to beryllium hard for liquor stores to fig retired precisely however overmuch they are going to request to charge," said Martinez.

In an email to CBC News a spokesperson for the state said these changes followed input from representatives of a wide scope of Alberta liquor manufacturers, including distillers, ample and tiny brewers, and makers of refreshment beverages who were captious of the existent markup system, saying it led to marketplace distortions betwixt merchandise categories and inequalities betwixt tiny and ample manufacturers.

"Changes to the liquor markup strategy were undertaken with the nonsubjective of minimizing the interaction to Alberta consumers and enactment societal work arsenic they guarantee products with a higher contented of intoxicant are taxable to higher markup rates," said Brandon Aboultaif, property caput to the Service Albert and Red Tape Reduction Minister, Dale Nally.

The state besides says its attack ensures that higher-value products lend proportionally, and expects it volition lone interaction 16 per cent of wines sold successful Alberta.

But manufacture representatives judge astir wines volition beryllium impacted.

Harvey suggests the state should person started the advertisement valorem markup astatine a higher terms point.

"We conscionable don't deliberation it had been done successful the close way, without consultation, without possibly stakeholders being capable to speech astir wherever to peg immoderate advertisement valorem terms increase, and conscionable the rationale down it successful the archetypal place. Why is this necessary? What was the logic down this?," said Harvey.

But helium says radical inactive person clip to banal up connected their favourite vessel of vino because those connected the support present won't summation successful price. He says the terms summation volition footwear successful connected caller proviso ordered connected oregon aft April 1.

The  state says the changes are projected to effect successful a gross summation of betwixt $22 cardinal to $23 cardinal each year.