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Province growls at brewery tax loophole

Craft brewery patrons will be paying more for takeaway draught soon
Driftwood Brewery-Growlers
Gary Lindsay

ItB次元官网网址檚 Friday afternoon at the corner of Bridge and David streets in VictoriaB次元官网网址檚 Rock Bay neighbourhood.

Five-ton trucks rumble by steel-fenced industrial warehouses, while a steady rush of patrons dutifully file through unmarked doors carrying what look like old moonshine bottles.

Inside, staff at the neighbouring Hoyne and Driftwood breweries can barely keep pace with demand for a 19th-century tradition thatB次元官网网址檚 been revived in recent years, a result of the proliferation of craft brewing in the Capital Region.

Sold by most breweries for a one-time price of $5, growlers are 1.8-litre glass jugs that can be filled and refilled for about $10 onsite.

While only slightly cheaper than an average six-pack at the liquor store, growler use has exploded in popularity for obvious reasons, said Gary Lindsay, Driftwood brewery owner.

B次元官网网址淚tB次元官网网址檚 like going to a bakery to get your bread or to a marketplace that has their own farm,B次元官网网址 he said. B次元官网网址淎nything that connects people to the source of what theyB次元官网网址檙e buying, it means a lot more to them.B次元官网网址

Brewery owners also keep more revenue from growler sales. B.C.B次元官网网址檚 Liquor Distribution Branch takes a lower mark-up on draught than on packaged beer sales, a difference of .28 cents per litre.

But on April 1, the LDB will begin siphoning those savings back into government coffers, arguing patrons are consuming the beer off-site so the draught rate shouldnB次元官网网址檛 apply.

Local brewers canB次元官网网址檛 predict if the change will impact their bottom line, but the cost will undoubtedly be passed on to the customer.

That doesnB次元官网网址檛 bode well for brewery regulars like Peggy Leonard, a 40-something Victoria resident who fills up two growlers every weekend.

B次元官网网址淚f IB次元官网网址檓 going to somebodyB次元官网网址檚 house, IB次元官网网址檒l bring a growler and everybody wants to try it,B次元官网网址 Leonard said, adding a higher price may impact her love for takeaway draught.

The LDB levy chips away at craft brewery revenue at a time when most are looking to expand to bigger markets.

B次元官网网址淟ike any other business in the food and beverage industry, itB次元官网网址檚 a game of nickels and dimes,B次元官网网址 said John Fitterer, sales and marketing manager at Lighthouse Brewing Company. B次元官网网址淓veryoneB次元官网网址檚 trying to make a 10-to-15-per-cent bottom line.B次元官网网址

Lighthouse plans to open its first growler and tasting room next week after a 6,000-sq. ft. expansion.

But other breweries like Phillips, Vancouver Island, Hoyne, Driftwood, Moon Under Water, SpinnakerB次元官网网址檚 and Canoe have been providing growler sales for varying periods, and all have seen a steady increase in onsite sales.

B次元官网网址淧art of the idea is itB次元官网网址檚 environmentally friendly to use the same growler, and itB次元官网网址檚 also really cost-efficient for the people buying it, and itB次元官网网址檚 great for us, because we donB次元官网网址檛 have to package product to sell it,B次元官网网址 said Chelsea Walker, co-owner of Moon Under Water brewpub.

In response to the planned mark-up, The of British Columbia is circulating an , hoping to lobby Minister Rich Coleman to reconsider the policy revision.

B次元官网网址淭his tax hike will harm the growth of this industry and the culture of B.C.,B次元官网网址 it states.

dpalmer@vicnews.com





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