Q&A: What opening interprovincial alcohol trade could mean for local craft brewers

CBC News

· Posted: Mar 09, 2025 5:00 AM EDT | Last Updated: March 9

Federal and provincial governments person agreed to easiness restrictions connected the merchantability and organisation of intoxicant crossed the country. 

The determination is portion of a big of changes being worked connected by the federal, provincial and territorial governments aimed astatine adding $200 cardinal to the Canadian system portion it faces ongoing turbulence from U.S. tariffs.

To find retired what opening commercialized barriers could mean for section producers, London Morning big Andrew Brown met with Dave Reed, the proprietor of Forked River Brewing Company.

The pursuing has been edited for magnitude and clarity:

Andrew Brown: How does it presently enactment erstwhile it comes to buying and selling beer, vino and spirits from different provinces?

Dave Reed: We get radical coming into the brewery, they person a large clip having immoderate drinks, and they're like, "How tin I nonstop thing to my relative successful Winnipeg?" And we person to archer them, "Sorry, can't bash it." They look astatine you like, "Why can't I message a six-pack to my brother?" And there's conscionable nary bully answer.

AB: So the reply to that is simply that you can't bash it?

DR: Exactly. It's conscionable not allowed. And they ever look astatine you with bewilderment.

AB: Why is that?

DR: Originally, it was a protectionist measure. Back erstwhile determination was a Canadian-owned Labatt brewery successful Winnipeg, different successful Saskatoon, and 1 successful Calgary, each state had its ain breweries, and the rules were meant to support those section jobs. The thought was well-intentioned astatine the time. But things person changed. Labatt, Molson, they're each foreign-owned now. The manufacture has consolidated, and these ample breweries vessel crossed provincial borders. But we inactive can't.

AB: What has your inability to export to different provinces meant for breweries similar yours successful Ontario?

DR: For us, it's not a monolithic contented due to the fact that we're a tiny brewery. We enactment our section assemblage and province. Our main absorption is selling locally. But we'd besides emotion for radical present to beryllium capable to stock our brew with friends and household extracurricular the province. It's frustrating from a lawsuit work standpoint. Our full intent is to stock our product, and it's pugnacious to archer idiosyncratic we can't merchantability them brew conscionable due to the fact that of wherever they live.

AB: What benignant of opportunities does this unfastened up for you?

DR: We already person an online presence. We had it earlier COVID and relied connected it heavy during the pandemic. Right now, we get radical from extracurricular Ontario buying gifts for friends oregon household here. But now, we tin really reciprocate that. We tin vessel to them. Of course, determination are logistical challenges. Beer is perishable, it's dense — but we tin fig that out. Up until now, we've lone been capable to judge online orders for transportation wrong Ontario. But now, we're acceptable to grow that.

LISTEN | London brewer Dave Reed connected opening interprovincial trade:

AB: You mentioned the protectionist facet of the existent system. Do you person immoderate concerns astir brew coming successful from different provinces?

DR: Not really. Someone successful Alberta isn't going to bargain each their regular beers from Ontario due to the fact that they'd person to wage for shipping. Shipping costs volition ever beryllium a factor. Plus, each state has its ain taxation system. Every brewery crossed Canada pays a national excise tax, but provincial taxes alteration wildly. In Ontario, we wage astir 8 to 9 times the taxation that a brewery successful Alberta pays. So pricing structures are different. But astatine the extremity of the day, we've ne'er adjacent had the accidental to compete. Now, astatine least, we do.

AB: What bash you deliberation this could mean for idiosyncratic who buys brew astatine the LCBO? Will determination beryllium much contention from different provinces?

DR: Not necessarily. The LCBO and different provincial liquor boards, whether privatized oregon government-run, person their ain processes for getting brew connected their shelves. It's not arsenic elemental arsenic maine calling up a liquor store successful Calgary and saying, "I'd similar to merchantability you Forked River." There's a full strategy successful place. People are inactive going to bargain their go-to beers, but this alteration mightiness marque it easier to entree unsocial beers from different provinces. 

AB: I'm from Alberta, and the trade brew manufacture determination has been increasing a lot.

DR: Absolutely. Every state has its ain specialties. Even wrong Ontario, antithetic regions person breweries known for circumstantial styles. And really, wherefore shouldn't we beryllium capable to entree those crossed Canada?

AB: You've talked astir idiosyncratic customers buying from your brewery, but could you spot a aboriginal wherever Forked River brew is connected liquor store shelves successful Vancouver?

DR: If there's request for it and we tin marque it happen, absolutely. In fact, aft we won a golden medal astatine the Canadian Brewing Awards successful New Brunswick, their liquor committee contacted america asking for a mates of pallets of that beer. That was government-to-government, which made it easier, but it shows that determination is simply a market. That said, we're a tiny brewery. Our main absorption is inactive selling locally, bringing Londoners into the brewery, and supporting our community. When radical bargain section beer, they're besides supporting section comedians, musicians, and businesses. That's wherever our bosom is.

AB: Could this pb to changes successful the size of your brewing operation?

DR: Definitely. If it made consciousness to merchantability successful Alberta oregon different provinces, we'd request to standard up production. We'd besides request a selling beingness successful those areas. Here successful London, we've built up a beardown reputation. But that takes clip successful a caller market.

AB: Would you privation to turn successful that way?

DR: The scariest happening for a brewer is erstwhile brew leaves the brewery. You don't cognize however it's being stored, if it's being poured into a cleanable glass, oregon if the draught lines are clean. So determination are logistical challenges. Of course, we privation to grow, but we besides privation radical to beryllium excited astir supporting their section breweries. Every assemblage successful Canada has astonishing beverages made by passionate people. Let's enactment those, and past stock them with others.