BC’s Craft Beer Industry in Crisis After 20 Brewery Closures

Photo credits: BC Craft Brewers Guild

BC’s craft brewers are sounding the alarm.

Twenty BC breweries have already shut down this year and more are barely holding on.

On July 31, the BC Craft Brewers Guild officially launched its new advocacy campaign called “Protect BC Craft Beer.”

It aims to rally beer lovers across the province to demand fairer tax treatment for local breweries.

The Guild represents over 219 breweries across 70 BC communities.

According to the Guild, BC’s tax system is outdated and unfairly stacked in favour of foreign-owned beer conglomerates.

These global giants have received more than $60 million in tax rebates since 2016.

Last year alone, they were handed $9 million in breaks – all while local craft breweries are getting taxed more the bigger they grow.

“Without change, many of our members won’t make it,” said Ken Beattie, Executive Director of the BC Craft Brewers Guild.

“Some have already closed their doors. This reform isn’t just about fairness. It’s about survival.”

The campaign comes at a critical time.

Since 2020, the cost of doing business has jumped by 30 percent for local brewers.

With all the random new US tariffs now affecting key ingredients and packaging materials like aluminum, the pressure is even worse.

And yet, the provincial government apparently has not increased the markup rate on foreign-owned breweries since 2016.

Local craft brewers, on the other hand, get hit harder as they grow.

The current tax structure penalizes breweries that cross certain production thresholds, meaning success comes with a steep price tag.

That’s because the more you produce over the threshold, the more you get taxed.

Their proposal is a revenue-neutral reform that would modernize BC’s beer markup system.

If adopted, it could potentially save BC’s craft brewing industry more than $16 million annually – money that could be reinvested into jobs, ingredients, and growth.

Other provinces like Alberta, Ontario, and Saskatchewan have already stepped up with supportive tax measures for their craft brewers and pay 4 times less than BC breweries.

The Guild is asking BC to do the same.

“This isn’t about handouts,” says Cameron Forsyth of Main St. Brewing.

“We’re just asking for fair treatment. If other provinces can do it, why can’t BC?”

If nothing is done, the future of BC’s craft beer scene will be the same carnage that the restaurant industry is facing.

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