Overview
We are gathering feedback from Alberta’s liquor manufacturers as part of a thorough review of the province’s liquor markup system. The engagement will focus on:
- the impacts of different liquor markup approaches on different products and manufacturer types
- if preferential markup rates are required to support different types of manufacturers different economies of scale, and different liquor categories
- what conditions should be required to be eligible for preferential markup rates
Get informed
Alberta’s last review of the liquor markup regime was in 2003, 10 years after the privatization of the liquor retail market. Since then, a few ad hoc changes have been made without review. Because of these changes and shifts in the overall market, pressure is now being exerted on Alberta’s liquor markup system, including rising costs and growing discontent among some manufacturers who perceive there to be inequities between different sectors of the market.
Alberta Gaming, Liquor and Cannabis (AGLC) collects the markup on behalf of the government, which is ultimately transferred into the General Revenue Fund to support programs and initiatives that benefit all Albertans.
Get involved
Stakeholder engagement
Liquor manufacturers and their associations that produce liquor products in Alberta will be invited to share their views regarding changes to the way markup is added to liquor products in Alberta for long term sustainability.
Government will also seek input on how different approaches to markup are viewed by industry, for instance, a sliding scale tied to alcohol content, or a preferential markup for small scale domestic producers.
Alberta-based manufacturers will also be asked for input on challenges and barriers in listing their products for sale in other jurisdictions.
Key priorities
The Government of Alberta aims to update its liquor markup system in a manner that reflects the best of different approaches based on product differences and economies of scale.
In scope
To inform the development of Alberta’s new liquor markup system, discussion questions will be centred around:
- how the various current markup systems impact manufacturers based on:
- product types (for example, beer or spirits)
- preferential markups for Alberta producers
- preferential markups based on raw materials like barley or wheat
- third party contracted production
- if Alberta’s liquor manufacturers are facing undue barriers to listing their products for sale in other provincial, territorial and international markets
Outcomes
Service Alberta and Red Tape Reduction will compile the feedback from the engagement with stakeholders to develop policy options for the Minister of Service Alberta and Red Tape Reduction’s consideration.