Today the Honourable Siobhan Coady, Deputy Premier and Minister of Finance, and Bruce Keating, President and CEO of the Newfoundland and Labrador Liquor Corporation, provided details on the increased discounts on the commission craft brewers pay the NLC.
These changes were approved by the NLC Board of Directors and announced as part of Budget 2020. They were made in response to feedback from craft brewers, and will save the industry more than $1 million annually.
Another change includes the removal of any distinction between product sold on premise at a brewery or in NLC Liquor Stores, NLC Liquor Express locations or convenience stores. This change ensures that brewers receive the same revenue for products they sell, regardless of location.
The new discounts on the mark-up rates for different sales volumes include:
- 0-100,000 litres: 95 per cent discount;
- 100,001-250,000 litres: 75 per cent discount;
- 250,001-500,000 litres: 55 per cent discount;
- 500,001-1,000,000 litres: 50 per cent discount;
- 1,000,001-1,500,000 litres: 40 per cent discount;
- 1,500,001-1,700,500 litres: 33.3 per cent discount; and
- 1,700,501-2,000,000 litres: 15 per cent discount.
There are currently 19 craft breweries in the Newfoundland and Labrador, of which only four produced over 100,000 litres in fiscal year 2020. This change represents a significant commission discount for the industry.
Quotes
“The craft brewing industry holds exciting potential for new entrepreneurs and consumers in urban and rural areas across our province. The changes we are detailing today will keep another $1.1 million dollars in the industry each year, allowing them to invest in expanding their market presence or product offerings and creating new jobs.”
Honourable Siobhan Coady
Deputy Premier and Minister of Finance
“The craft brewing industry in the province is an important partner of ours. Craft brewers are small businesses, with many only having entered the market in the past three to five years. They are a key element of the province’s tourism strategy, provide important employment and economic activity in their towns and cities, and cover all parts of the province, from Bay Roberts to Twillingate, Cormack and Labrador City. We look forward to continuing to partner with the industry and working with government to support the province’s broader economic goals.”
Bruce Keating
President and CEO, NLC
“The Government of Newfoundland and Labrador has chosen to support local today. This is the major step in the right direction for support of the Craft Brewing Industry in Newfoundland and Labrador. It will lead to more locally produced beer and more jobs across the province. The Newfoundland and Labrador Craft Brewing Industry thanks government for the measures announced today.”
Justin Fong
Chair, Newfoundland & Labrador Craft Brewers Association
Director, Marketing and Sales, Quidi Vidi Brewing Co.
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Media contacts
Marc Budgell
Finance
709-729-2477, 689-0430
marcbudgell@gov.nl.ca
Darrell Smith
Newfoundland and Labrador Liquor Corporation
709-724-1165
darrell.smith@nlliquor.com
Justin Fong
Newfoundland & Labrador Craft Brewers Association
709-749-6694
justin@quidividibrewery.ca