The B.C. government's decision to hike beer prices isn't sitting so well with a local brewer.
Ben Coli, owner of Dageraad Brewery on Thunderbird Crescent, says the new wholesale pricing system has negatively impacted his craft beer business since it came into effect April 1. Private liquor stores, which used to receive a 16-per cent discount on wholesale costs, now pay the same price as their public counterparts.
The policy change, however, has resulted in a higher bill at the till, as the stores pass the cost onto the consumer.
Craft beer, in particular, was hit with a 12 to 14 per cent markup as of June 1, according to Ken Beattie, president of the B.C. Craft Brewers Guild.
To put it in perspective, Coli's private liquor store clients now have to pay 30 to 40 cents more per bottle of his Dageraad brew, which he said could equate to up to 60 cents more on a shelf in a private liquor store - his main clientele.
"I'm quite worried about some of my customers and whether they're still going to be in business this time next year. I've already had one customer close so far," he told the NOW. "The fear is that they're not going to be able to compete anymore."
This is just another disadvantage for private operators, Coli says, adding B.C. Liquor Stores now have weekend and holiday hours, as well as the right to install refrigerators.
Coli's brewery, which opened its doors last year, has dropped its profit margins as a way of absorbing some of the blow. Prices in the tasting room, meanwhile, have been kept "reasonably low."
"We chose to make less money on it, so we're earning less on the beer and we're seeing our beer sell for more," he explained. "It's just a double whammy."
The entrepreneur isn't sure what the summer season will look like given the new rules, but imagines his production volume will be affected.
"It makes a big difference for us. (Craft beer) is booming in this province right now, and for the provincial government to step in and basically pour cold water on the whole industry at this moment, I find it baffling," he said. “I don’t know whether they’ve researched this enough.”
Beattie called the hike just another tax that will beef up government coffers.
In an emailed statement, Attorney General Suzanne Anton said the government is focused on "creating a competitive marketplace that will benefit consumers."
"Let's put everything in perspective: every month, some prices go up and some prices go down - just any other retail cost of goods - but we're talking about cents here. Supplier costs, limited time promotions and strength of the Canadian dollar also affect prices," read the email.
The provincial government plans to review requests for policy changes on an annual basis.
