Lake of Bays Brewing pulls beer from Alberta
Baysville – Lake of Bays Brewing Co. has announced it has fully suspended operations in the province of Alberta due to out-of-province tax hike on beer that was introduced in October 2015.
“As a mid-sized craft brewery located outside of the so-called New West Partnership area, our tax rate on beer sold within Alberta jumped overnight from between $0.10 and $0.20 per litre, to $1.25 per litre, on October 28 of last year,” explains the brewery. “We had no advance warning of the increase, the effect of which was an immediate spike in the price of our beer to Alberta wholesale customers and consumers.”
“Prior to the increase, we had been experiencing significant sales growth in Alberta, and had hired two sales reps in the province to help expand our distribution footprint. Not wanting to give up, we attempted to soldier on for a few more months, but found that the added tax burden was simply too much to bear,” they add.
Muskoka Brewery and Steam Whistle have also withdrawn from Alberta under the same circumstances, although in January 2016 Steam Whistle was granted an injunction against the Alberta tax increase.
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