Craft brewers warn red tape could sour plans for cross-Canada beer sales

CTV News

4 days ago

Pouring into new markets - and the cups of millions of new customers - is on the table for Canada's craft breweries, but some business owners are raising more questions than toasts.
A federal agreement is set to allow alcohol producers to sell straight to consumers in most provinces by May 2026, tearing down long standing interprovincial trade barriers. All but one province, Newfoundland and Labrador, as well as the Yukon are on board. Some brewers, however, say the trouble of moving beer across borders outweighs the benefits.
'It's probably not something that we would look to offer in the near future, based on the logistical challenges and the costs of shipping,' said Jared Murphy, co-owner of Lone Oak Brewing Co. in P.E.I.
Beer is heavy, shipping in bulk is pricey and ideally it should be kept cold. For small producers, those are bigger problems, Murphy said.
However, the plan could create opportunities for transport companies, said Christine Comeau, executive director of the Canadian Craft Brewers Association. She doubts it will move the needle if costs stay high.
'I don't think that it's going to be a huge kind of market opportunity for us,' she added.
Comeau said Canadian craft brewers are already struggling with higher import volumes, tariffs and rising costs for cans, cardboard and transport.
'Any kind of break or opportunity that they can have to have increased market access or reduced markups is something that we're in favour of.'
Even if freight issues are solved, each province still follows its own tax rules. Regulatory boards tend to protect and favour local businesses, Murphy said.
'If you are in New Brunswick and you're looking to sell alcohol, they're more likely to create advantageous taxation structures for local producers,' Murphy said.
'This is a symbolic move in trade more than anything else,' said Frederic Gionet, Atlantic director at the Canadian Federation of Independent Business. He added that if red tape can be reduced, Canada could apply the same solutions to other industries, as the country faces a trade war with U.S. President Donald Trump.
In an emailed statement to CTV News, P.E.I. Finance Minister Jill Burridge said there are 'many administrative details to work out' and 'a lot of complexities involved in changing regulated spaces,' but she is 'optimistic about meeting the May 2026 deadline.'
For now, the beer at Lone Oak stays local as the rules get a sober review.