CHILLIWACK – Chilliwack MLA John Martin toured Ole Yale Brewing on Friday to share the good news that they will benefit from additional economic support thanks to a significant reduction in the mark-up rate for craft beer products.
Effective July 3, 2016, the mark-up rate for small and regional breweries will be reduced by approximately 25% per litre, meaning that craft breweries will have increased financial capacity to grow and expand.
“We’ve seen huge growth in craft beer in B.C. as more people turn to local options,” Martin said. “We are lucky to have an award winning local brewery right here in Chilliwack. The reduced mark-up means breweries can continue to expand and grow their businesses.”
The B.C. craft beer industry has seen exponential growth over the past few years, increasing from 54 in 2010 to 118 breweries in 2015, with up to 20 additional new breweries on the horizon.
The B.C. government will also take action to improve cash flow for craft brewers, meaning they will have more money to fund payroll, rent, and investments in new equipment. Craft breweries will no longer be required to remit all of the revenue from the sale of their products to the Liquor Distribution Branch before the mark-up is applied.
The reduced mark-up rate builds on previous provincial efforts to cut red tape and increase supports for the craft beer industry. These measures have resulted in a 35% increase in the amount of craft beer produced in B.C. over the last year.