Government Introduces New Markup Structure to Support Growing Beer Industry

Released on October 27, 2016

Brewers growing their production will soon benefit from changes to Saskatchewan’s beer markup.

“The popularity of Saskatchewan craft beer continues to grow as consumers recognize the superior product our local brewers produce,” Minister responsible for Saskatchewan Liquor and Gaming Authority Jeremy Harrison said.  “This significant reduction in markup rates will assist manufacturers as they plan for the future and allow them to make necessary investments to increase their production volumes and create jobs in a growing industry.”

Beer manufacturers are subject to markups for products sold in the province and distributed through Saskatchewan Liquor and Gaming Authority or private beer distributors.  The way the rates are currently structured means small manufacturers face significant financial impacts when their production volumes grow.

Effective November 1, the markup structure will feature more gradual increases as production grows.  The changes apply to all qualifying brewers.

Saskatchewan’s craft breweries also benefit from a number of other recent changes, including the ability to direct deliver their products to Saskatchewan retailers, sell other Saskatchewan-made beer, wine and spirits and also set up a second retail location away from their production site.

Saskatoon’s 9 Mile Legacy is one of the province’s newest brewers and usually has four to five different beers on tap any one time.

9 Mile Co-founder and CEO Shawn Moen says the first 18 months of business has been exciting and busy – so busy they are currently working on a new and expanded brewery/taproom approximately four times the size of the current location.  The new brewery is expected to open by the end of the year with the taproom to follow next spring.

“The beer scene in Saskatchewan has changed phenomenally over the past number of years and Saskatchewan consumers are really throwing their support behind local brewers,” Moen said.  “The changes being announced are a great example of government and industry working together to build a solid foundation for future growth and success.”

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For more information, contact:

David Morris
Saskatchewan Liquor and Gaming Authority
Regina
Phone: 306-787-1721
Email: dmorris@slga.gov.sk.ca

Shawn Moen
9 Mile Legacy 
Saskatoon
Phone: Phone: 306-380-6814
Email: shawn@9milelegacy.com