According to an article in today’s Toronto Star, craft beer in Ontario is mirroring what’s going on in the U.S. After sales of macro beers have slowed and declined, craft beer sales have risen to take up the slack. Thirty Ontario craft brewers now account for 5% of total beer sales in the province, which represents $100 million and a 17% increase in jobs. That’s an increase of 100 basis points over last year when craft beer in Ontario was at 4% of the total, which is a huge increase in one year.
BIG changes to Canadian brewery federal excise tax rates thanks to a government change and a new budget that supports small business.
If the budget is approved, and it looks like it will be, the following tax breaks could be realized:
Unofficial numbers:
So a brew pub with 2000 hl saves $56,000.
A micro with 5000 hl sales saves $131,099.
A 15,000 hl brewery saves $318,400.
Big Rock will pocket $760,000 more next year.
The craft brewers association in Ontario expects to double employment in the industry over the next five years as a result of the excise tax reduction.
This is HUGE for the craft brewery movement in Canada!