Alberta has scrapped its planned fee structure for breweries, citing pressures from U.S. tariffs and a desire to foster business growth. In a related scene from Buffalo Grove, Illinois, a bartender is seen serving a craft beer on Thursday, February 9, 2022. (Photo credit: THE CANADIAN PRESS/AP/Nam Y. Huh)
In a surprising turn, Alberta's government has reversed its decision to hike taxes on beer producers — a move that would have significantly impacted the province’s oldest brewery. The earlier tax plan, introduced in February with the new budget, had cut the production cap that breweries could hit before facing the highest tax rate.
Under the older model, breweries could produce up to 400,000 hectolitres (or 40 million litres) before being charged the maximum $1.25 per litre in fees. However, the February changes slashed that limit to just 18 million litres, catching larger craft brewers like Calgary’s Big Rock Brewery off guard. The company calculated that the change would have cost it an extra $1.4 million annually.
At the time, Service Alberta Minister Dale Nally defended the move, saying it would create a level playing field and affect only one per cent of breweries. But Big Rock wasn’t part of the “99 per cent” that would be spared, and they weren’t quiet about it.
On Thursday, Nally’s office confirmed they’re backing off the tax change. The province will now reinstate a higher production threshold — increasing it to 30 million litres — and introduce more gradual fee increases. The decision came amid rising tensions over U.S. tariffs, especially a recent increase on aluminum, which directly affects breweries reliant on cans.
Brandon Aboultaif, Nally’s press secretary, cited the need to support Canadian businesses through uncertain trade conditions. He said the updated model will allow small breweries more breathing room as they scale up their operations.
While Aboultaif didn’t confirm whether the policy reversal was in response to Big Rock’s concerns, the brewery's leadership welcomed the news. Brad Goddard, Big Rock’s VP of business development, said the shift came after ongoing discussions with the government. He called the timing perfect, as the peak summer beer production season is now underway.
“Every week of summer beer sales is make-or-break for us,” said Goddard. Since taxes are paid as beer is made, the timing of the lower rate couldn’t have come sooner, especially with U.S. aluminum tariffs jumping from 25% to 50%. Goddard explained that cans are one of their largest costs, and the rollback in fees will help absorb that blow.
Although Big Rock already paid around $400,000 more under the previous tax model in just three months, Goddard said the company is focusing on the future and views this decision as a return to a fairer structure.
The reaction across the beer industry has been mixed. Beer Canada, a national group representing breweries of all sizes, originally praised the February changes as a boost for small craft brewers. But now, the organization says it understands Alberta’s need to adapt and is calling for wider beer tax relief for all brewers and consumers.
On the other hand, the Alberta Small Brewers Association celebrated the shift, saying it’s a step toward a more hopeful future. Executive Director Blair Berdusco said the new 30 million-litre threshold is an improvement and aligns better with national trends. She praised Minister Nally for recognizing the importance of consistency across provinces, noting that Saskatchewan allows a 50 million-litre cap.
As the beer industry grapples with inflation, rising production costs, and international trade tensions, Alberta’s decision brings a bit of relief to those trying to keep the taps flowing.
