Local Breweries Feel Slighted by LDB's Plan to Lure US Craft Sales to Gov't Liquor Stores

Despite the fact that many small, BC craft breweries often struggle to get their beers listed to be sold in the government run BC Liquor Stores, the Liquor Distribution Branch (LDB) is sending one of their own to the Craft Brewers Conference & BeerExpo America (CBC) to give a talk about "market opportunities" in BC for US craft breweries.

LDB Portfolio Manager, Kimberly Giesbrecht, is set to give a one-hour talk entitled Canada Market - British Columbia during a day of talks dedicated to "Export Development" at the CBC.  According to the LDB, Giesbrecht was invited to speak at the CBC by the U.S. National Craft Beer Association (USNCBA), "because BC is recognized as very supportive of the craft beer industry,"  and that Giesbrecht, "will be sharing her insight into the BC market with their members," addressing, "craft brewers from around the world including many from BC."

I hope BC craft brewers do not have to travel all the way to Washington, DC, where the conference is being held, to benefit from Giesbrecht's insights about the BC craft beer market.

The description of the talk, to be given March 27, states:

"U.S. craft beers have seen solid growth in British Columbia through the government-run liquor stores and private retail. British Columbia Liquor Distribution Branch category manager Kim Giesbrecht will speak about the performance of American craft beers in the province and market opportunities."

Why is this worthy of mentioning you ask?

Well, for one, this foray to Washington, DC by a government bureaucrat to try to lure US craft breweries to sell in BC government run liquor stores is a direct slap in the face to the local craft breweries who employ local people, support other local businesses and industries, pay local and provincial taxes, spur on local economy, draw people to the province via tourism and who struggle to get their beers sold via the LDB outlets and who, for the most part, feel the LDB but little to promote and market them in LDB stores the same way they do the BC wine industry. It is especially sensitive with some local brewery owners I have spoken to in the face of the fact that recently the Provincial Gov't announced  "a honorary B.C. wine envoy will be named with a mandate to work to complement existing efforts to open up domestic markets for B.C. wines." 


Many may not know, but having a brewery in BC and making great beer does not automatically give you access to selling your locally brewed beers  in BC Liquor Stores. Breweries have to apply to get their beers "listed" with the LDB and are often turned down for various reasons. The application process is complicated with many specifications that must be met in regards to the beer's production, packaging, etc before an actual listing is approved and the beer can be sold in the LDB stores. 

Many craft breweries have to settle on getting the majority of their beers "registered" which means they can sell, on behalf of the LDB, directly to consumers from their own store front, if they happen to have one, or sell to private liquor retail stores (LRS) which are more open to trying new, unique and small-batch, specialty items. But having your product registered, without a listing for the government store prohibits that product from being sold through the LDB outlets.

Competition for shelf space in LDB stores is getting fierce and there are more local breweries set to open over he next few years so the situation is not going to get better. Not all will want to sell via the LDB, but those that do will have to compete with breweries who are already established, up and running and, as I stated, who are already finding it difficult to sell via the government outlets themselves. 

And it appears, if Giesbrecht's talk is successful, they will have to compete with more US craft breweries for space as well.

So why is the LDB actively seeking out to import US craft beers to sell in their stores that could potentially make it more difficult for local breweries to get their beers to market? 

Why is it so difficult for BC craft breweries to get all their beers into the LDB stores?

I posed these questions to the LDB and Kim Giesbrecht and I received a reply from the LDB's Communication Department. 

In their email communication, the LDB stated, "British Columbia’s craft beer customers demand access to a wide range of domestic and import beer. In response to this demand, the LDB provides its customers with access to a complete portfolio of beers which includes import."

I agree strongly with consumers having as many choices as possible, but in my opinion, should BC consumers not have access to all their favourite BC craft beers? It really irks me that when I walk down to my local government run store on Commercial Drive I can't find many of the great beers that are brewed in the Greater Vancouver area and that are available in a packaged form. For that matter, I cannot even find all the beers made within 5 kilometres of the Drive, beers that are selling like crazy in the LRS outlets.

The LDB communication also pointed out, "currently, the LDB has listings for 160 beers produced by small and medium-sized BC breweries. In comparison, there are 30 listings for small to medium US craft breweries."

These numbers seem to support that the LDB is giving local, craft breweries a fair shake but consider that in the eyes of the LDB a medium-sized brewery can produce all the way up to 160,000 HL annually, so you can include many breweries that the craft beer drinker would never consider to craft breweries. In fact, with the recent tied house law changes, medium-sized breweries are considered those that have an annual production of over 15,000 HL up to 300,000 HL which is a massive amount of beer and so far removed from the craft scene that it is laughable! 

I am not sure what standard the LDB is using but if it is up to 160,000 you can include Okanagan Spring (10 listings) and Granville Island (15 listings) and if it is up to 300,000 HL, you can include Pacific Western Brewing (16 listings) as well. 

So you really have to take that stat of 160 listings with a grain of salt.

And if you consider that Labbat & Molson have over 60 listings just for their beers, 95% of which are impossible to differentiate taste-wise from one another, the 160 listings for all BC "small-to-medium-sized" breweries looks a little lame. If BC Liquor Stores are feeling the pinch for shelf space and want to offer the best products available to their consumers and, "a complete portfolio of beers," they could cut back on these massive number of listings for large breweries. 

I see no need for Molson Canadian to be available in 18-pack, 15-pack, 12-pack bottles and 30-pack, 24-pack, 15-pack, 12-pack, 8-pack and 6-pack tins on BC Liquor Store shelves.

As you know, this is exciting times for the BC craft beer industry which is experiencing unprecedented growth and success. In their December 2012 Quarterly Market Review (QMR), LDB stats show domestic beer sales for breweries under 15,000 hectolitres are up 24.81% for draft and a whopping 53.36% for packaged product over the same quarter last year and this is despite the fact domestic beers sales are dropping consistently here in BC. In fact, US beer sales are dropping as well, (15.31% by volume, 10.84% in dollars) which seems contrary to the intro to Giesbrecht's talk where it was written, "U.S. craft beers have seen solid growth in British Columbia..."  and the LDB's report of only having 30 US listings for small to medium-sized breweries.

I also posed the question, "Is the LDB looking to support BC breweries at a critical time of growth for this local, home-grown industry which is providing key employment opportunities in BC during hard economic times and if so, how?"

The LDB stated to me that they do in fact support the BC craft beer industry. 

In their email they stated, "the Province provides preferential rates of mark-up for small breweries. This policy has had a significant impact on the growth and stability of the craft brewery sector in British Columbia which is one of the most vibrant in the country," and I'll have to give them that one. 

But the email went on to state, "In addition, the Province offers craft brewers a very affordable distribution rate if they choose to have the LDB distribute their product. Also, craft brewers are offered excellent display opportunities in BC Liquor Stores throughout the province that raise the profile of their products."

Low cost LDB distribution is brilliant if you brew close to a LDB warehouse where you have to deliver your beer in order for them to distribute it! It is of little use to breweries who are located nowhere near the two distribution warehouses located in East Vancouver and Kamloops.

And as for "excellent display opportunities in BC Liquor Stores...." I don't even know where to start with that one. If you want to see how serious the BC Liquor Stores take promoting BC craft beer, check out Barley Mowat's series posts about LDB's focus on marketing here and here you will get the picture.  

This craft beer boom in BC has everything to do with the breweries producing great beer, which is garnering consumer support, which in turn is causing more and more licensees to realize that BC craft beers are quality and profitable products to sell and has little to do with the LDB supporting the industry that continues to put more and more $$$s in their coffers. 

It would make far more sense to me if the BC Government was hosting buyers and distributors from Washington State and Oregon, trying to entice them to buy BC craft beer and distribute it is their markets. 

This I would see as supportive. 

Or just allow BC breweries to list their beers so they can at least sell in their local LDB Liquor Stores.

CAMRA BC Launches Save the Growler Campaign

CAMRA BC has launched a new campaign entitled "Save the Growler"  aimed at trying to stop the upcoming increased LDB mark-up on growler sales.

The announcement of the new campaign came literally minutes after I posted  about the subject based on information I had received from some brewery representatives and the LDB. CAMRA BC President, Rick Green wrote in a statement Thursday, Feb 28, "CAMRA BC is strongly opposed to the LDB's misguided interpretation of growlers and has begun to campaign for the rescinding of this tax increase."

 CAMRA Vancouver President Adam Chatburn put all the call for members to sign a petition and to spread the word that consumers must be vocal in rejecting what he called a "tax grab" and wrote an increased mark-up on growlers by the LDB is, "deliberately punishing smaller BC breweries and putting the brakes on the growth of the industry, by increasing the markup on Growler fills."

Green also pointed out that the classification of growlers as packaged product, which means the breweries pay a higher rate of mark-up by the government, is a "bureaucratic attempt to fit a square peg in a round hole," and that "the LDB only seems to be able to treat beer as either draught or packaged," ignoring the unique nature of the growler and its history.

The campaign may also put into the spotlight that the LDB and Provincial Government seem to have created a great amount of confusion as to how growlers should be mark-up and sales should be reported which you can read about here.

Let us hope that this attention put on this issue will help prompt an even larger review of how the LDB and Liquor Control and Licensing Branch are structured and operate.

More on Growlers & Mark-ups: Industry Confusion a Sign of LDB Dysfunction & Need for Review/Reform

It seems that the post I wrote regarding increases to the way growlers are marked up by the Liquor Distribution Branch needs some clarification.

There is confusion, most of which falls on the industry side of things and I find that disturbing as there seems to have been no consistent policy communicated or direction given to licensees on the sale of growlers by the people who are in charge of regulating sales and collecting dollars.

If I am to believe what brewery and brewpub representatives are telling me, and I have absolutely no reason not to, then different people are being advised different things at different times by the LDB.

When I was contacted about the potential increased mark-up, I took it upon myself to ask the LDB what the current mark-up policy was on growlers and if that policy was about to change resulting in an increase in cost to breweries. It took well over two weeks to get any responses to these simple queries and the LDB were being more mysterious and secretive than the Illuminati. No one seemed to have this information, or, if they did, they were unwilling to release it.

But eventually, after making further inquiries about growlers and another issue which I will be posting on the next few days, here is what I received:

• Currently, the packaged mark-up rate is applied to the first Growler fill and the draught mark-up rate is applied to refills
• The LDB recently reviewed the application of mark-up on Growlers.
• It was determined that Growlers, both the first fill and all refills, should be subject to the packaged beer mark-up rate because they are packaged for customer consumption off-site.
• The LDB previously applied a packaged beer mark-up rate on all Growler fills and will resume applying that rate in April.
• The collection of a deposit is no longer necessary.

That is a direct communication from the LDB. Notice on the first bullet it says "currently" and goes on to outline the mark-up as I described it in my first post: first fill is packaged mark-up rate and mark-up on refills is charged at draught rate. It then says that the LDB "previously applied a packaged mark-up rate....and will resume applying that rate in April". 

Seems simple doesn't it?

I have received information from brewery representatives, either directly or forwarded, "clarifying" how the system works and, as I mentioned, all are not being told or doing the same thing and there is no universal, clear policy in place it seems in regards to growler sales and mark-ups. 

I had a few people tell me they were told, by telephone over the past month or so by the LDB, that all growler sales would be classified as refills and that refills would now be charged at the packaged rate but when that change was taking place was not made clear to some. 

I have other information that growlers have been considered "packaged" therefore the higher rate has always been applied and this has been happening for about a year or so. These breweries have been getting charged $.32 more per litre for growler refills compared to some other breweries for some reason and probably did not realize it as they were doing what they were told to do. 

What is clear to me is that this is clear as mud and maybe why the LDB did not want to answer my questions, because they had no clear answer. 

In short, I stand by what I wrote. 

What is also clear to me is that those who were not getting screwed $.32/litre on refills will soon be feeling the pinch of the LDB and will have to make the decision between eating some of their profit to not piss off customers or raise their prices. 

But again it is not even totally clear how much the mark-up will be as it seems there are new mark-up rates coming out in April, but this I have not confirmed. I was notified by one brewery owner who "stumbled" across a document, in the vendor area of the LDB website, outlining the "new" rates, which will be applied in April. No one else, including the LDB, mentioned these mark-up changes so I am not sure what is going on there. I might assume it has something to do with the change back to the PST/GST tax system from our current HST but who knows.

So, there you have it. I do not usually write posts like this defending what I write because I do my research and am careful about what information I put out there. But in this case, some were hinting I was talking out of my ass, but I can assure you, the reason I did not post three weeks ago when I was first contacted about this potential mark-up change was because I was waiting for some confirmation from the LDB. When I received it and the info I had was confirmed, I posted.

So the confusion does not lie with me, it lies firmly with the LDB who quite clearly have not had a handle on how breweries should report their growler sales or who had not clearly defined for breweries how to do so. It is the LDB that approve skus which have prices attached to them and it is the LDB who collect the $$$s so someone there should have known what was going on. How there can be some much confusion about how a product should be marked-up and how sales should be reported is beyond me. It appears the LDB have now come to realize there is disparity and are in the process of making some changes and the changes are not ones that are going to favour some breweries and some consumers.

It is a definite sign of how convoluted, complicated and dysfunctional the current system is. There is need for review and reform. I am not saying scrap the whole system, but there is a need to simplify and streamline and look at what works and what does not.

In regards to growlers, mark-ups and potential cost increases, I guess we will have to wait and see what happens...in the meantime, I am going to shift my focus on growlers from the bureaucracy side of things to what should be important - the wonderful craft beer that is inside.

LDB Review on Growlers May Increase Consumer Costs

Arguably hottest trend in the local craft beer scene is the growler and a change in the way the BC Liquor Distribution Board classifies them may soon mean the consumer pays more at the cash register to take home their favourite, draught brews.

The way the LDB marks up the cost of beer is complicated to say the least. Currently, breweries pay the LDB a per-litre mark-up which is added onto what the brewery is charging for their beer and passed on to the consumer, and the price mark-up changes depending on the level of production of the brewery and whether the beer is sold as "draught", meaning on tap, or "packaged", usually meaning bottled or in cans.

The breakdown of basic mark-ups, according to a LDB document obtained by VEBB, goes as such (1 Hectolitre = 100 litres):

Breweries (>160,000 Hectolitres)

B.C. Packaged  - $1.75/L

Other Packaged  - $1.75/L 

Draught - $1.20/L

Breweries (>15,000 ≤ 160,000 Hectolitres)

B.C. Packaged  - $1.16 /L

Other Packaged  - $1.16/L 

Draught - $0.81/L

Breweries (≤ 15,000 Hectolitres)

B.C. Packaged  - $1.04/L 

Other Packaged  - $1.04/L 

Draught - $0.72/L

For those who don't know, growlers are refillable jugs which hold 1.8 litres, 64oz in old money, of liquid and are used by breweries and brewpubs to sell draught beer directly to consumers to take home. Currently, according to the LDB, when you make your first growler purchase, the brewery pays the LDB the packaged cost per-litre markup. Every fill thereafter is considered as draught and the brewery pays the LDB the lower draught rate. Remember that on the original fill, you also buy the actual growler as well, usually $4-$5, which you then own.

Confused yet?

For most craft breweries in BC, who fall in the 15,000HL and less category, the first growler fill, is currently marked up $1.04/L (packaged), which totals $1.87 per growler ($1.04/L x 1.8). Subsequent fills, are then marked up at $.72/L (draught) totaling $1.30 ($0.72/L x 1.8), $0.57 less than the original purchase. You can figure out the differences for the larger production category by looking at the difference between the packaged and draught rates.

There is also a $.20 deposit thrown in there on the first purchase which makes no sense because who is going to return a decorated glass bottle they just purchased for $4-5 to get a $.20 deposit?

But I digress...

Under the new rules, which come into effect April/13, all growler sales will be marked up at the higher, packaged price, no matter if it is the first sale or the 100th refill. That means smaller breweries, under 15,000HL, will be charged the extra $0.57 on refills, a 30% markup increase, and a cost that will most certainly be passed on to consumers, especially by the smaller production capacity breweries who operate on a tight budget and constantly walk the razor's edge of pricing their beer low enough to be competitive in the marketplace but high enough to make a reasonable profit. With some breweries averaging close to 1,000 growler sales some months, this increase quickly begins to add up to big dollar amounts. 

For example, on a growler that is $10.00 per refill, before tax, the actual increase of the markup on the total cost is 5.7%. That $10.00 growler now costs the consumer $11.20 after the dreaded tax man takes his pound of flesh under the current HST tax system. If breweries raise their retail price to compensate for this increased cost, the final consumer tally would be $10.57 + HST equaling $11.84, a $0.64 increase per refill. Not much in the grand scheme of things, but considering we already pay way too much for craft beer in this province, any consumer increase is too much in my opinion, especially when that increased cost is going straight into the government's coffers and not to the brewery.

And just for the record, the ridiculous $.20 deposit fee will no longer be charged at any time.

The LDB's explanation to VEBB, in an email, as to why the mark-up change is happening is that, "it was determined that Growlers, both the first fill and all refills, should be subject to the packaged beer mark-up rate because they are packaged for customer consumption off-site."

It took me over two weeks and close to 10 emails, to get this information. No one at the LDB  seemed willing to "sign off" on a simple request to get clarified how growlers are currently supposed to be marked-up and if it was true the changes were happening. Only when I emailed the LDB Beer Portfolio Manager, Kim Giesbrecht directly did I get a response from the Communications Department less than 24 hours later.

I have spoken to a few representatives from breweries that do growler sales and some did not know for certain if they would increase their growler price or absorb the financial hit in order to not alienate their customers while others immediately stated the cost would have to be passed on to the paying customer. Many had not even heard about this change in the way growlers were being marked up and were surprised by the information.

I cannot see how some of the nano-breweries, who rely on growler sales as part of their business plan, would have any choice but to raise their retail prices eventually. This increased markup, which really only impacts craft breweries (how many growlers of Molson Canadian do you see out there), shows once again that the government is not being very supportive of the craft beer industry as they continue to make it difficult for these smaller breweries to operate, be profitable and grow.  

There is also a lot of confusion about this increase and how growlers are supposed to be marked up at present. While trying to research this post, I spoke to several breweries and there were many different ways they were currently being marked up from being marked up the higher packaged rate on all fills and refills, to being marked up at the lower draught rate on all fills and refills to the system I described at the top of this blog. It is my suspicion that the LDB really had no handle on what growlers really were and how they should be marked up, so it slipped under the radar until recently when growler sales spiked significantly.

The only thing that is clear is that consumers, who already pay through the nose for craft beer in BC, will be paying a little more for their growler fills in the future so that the LDB can add even more onto their 900 million-plus profit margin they now enjoy. I find it convenient that this increase is possibly being implemented just when growler sales are spiking and when the laws have just been changed to allow for more on-site sales and consumption, meaning more small breweries with tasting rooms and the capacity to fill growlers will be opening.

A coincidence....I say no.

Hidden tax grab negatively impacting the craft beer industry and consumer...I don`t think it is hard to figure out.

More BC Craft on Tap on the Way

Back in January, while looking ahead at what was in store for local craft beer consumers in 2013, I mentioned that one of the highlights in my books was the fact that Tap & Barrel were opening a new location Downtown, off Jack Poole Square at the Trade and Convention Centre.

For those not in the know, Tap & Barrel, located at 1 Athlete's Way in the Olympic Village, is yet another venue to enjoy great craft beer in Vancouver, this one with a spectacular view of False Creek, Downtown and the Coast Mountains, and 24 taps of BC craft beer.

Yes, that is right, 24 BC taps of craft beer with not an American beer to be seen on the menu, at least with draft beer. I have nothing against the great beers from our American cousins, but I strongly believe that here in BC we have not only caught up to many of the breweries in California, Oregon and Washington States, but surpassed them at their own game, which is pushing the norms and limits of beer styles with creativity and daring.

And, in my opinion, not enough credit is given to our local breweries and brewers.

Come this summer, Daniel Hospitality Group (DHG) is set to up the ante with the second Tap & Barrel location, located on the west side of the Trade and Convention Centre. Tap & Barrel II promises to be bigger and better and yes, they will be still all BC craft beer on tap, but this time with 32 taps plus two beer engines for casks! Like the original location, they also offer BC wines on tap - 16 at the Olympic Village and 28 at the new location. And the view from the new location should be even more spectacular than the False Creek location, which is hard to beat on a warm summer day.

"I have had my heart set in this location since before the Olympics," wrote DGH owner, Daniel Frankel, in an email to VEBB. "I've been negotiating and working on this deal for 3 years now, believe it or not. Good things are worth the wait apparently."

Although highlighting BC craft beers is not unusual in Vancouver's craft-beer friendly establishments, being BC only, especially with the number have taps Tap & Barrel has is unprecedented as far as I know.

"A very large part of the concept was and is sustainability and being committed to local purveyors/suppliers," wrote Frankel. "I've always felt that local BC products are extraordinary and that we need to support our local economics as well. This is sustainable in more than one way - not only environmentally (reducing the carbon footprint), but also economically sustainable. Also, we've got great craft product right in our own back yards and we're very lucky to have this, so why go elsewhere?"

"For years I've gone out and seen import products on tap, and I've always wanted to see a huge array of taps celebrating our own province, committed to our products."

Frankel's commitment to local does not stop with his beer and wine as he is staying local with the restaurant's design and decor.

"We have been sourcing wonderful unique heritage, local, British Columbia building materials... tin siding from old warehouses, old lights and industrial lamps, reclaimed timber and I beams, gears from mills, old industrial chin, etc... also collecting local BC artwork from Douglas Coupland, to Carla Tak, Pat O'Hare, etc," wrote Frankel.

This may seem like a rah, rah, Tap & Barrel post and well, it is. I just happen to be an advocate for locally produced beers and if I have the choice of drinking a BC craft beer over a beer brewed anywhere else, if they are close in quality, I will choose BC 95% of the time. I love the fact that both  Tap & Barrel locations are in high-traffic tourist areas, giving exposure for our local beers to out-of-towners,of the non-traditional and traditional craft beer drinkers variety.

"They (non-craft beer drinkers) adapt very quickly and that's our objective," wrote Frankel. "We have tons of options, they just happen to be all BC, and they adapt very quickly and non believers learn to love BC on Tap."

Which is why I hope others take notice of the BC on Tap and get on board. We have amazing beers here, we should celebrate them. Look for Tap & Barrel II to open some time close to June. I will have located out of town by that point, but you can be sure it'll be on the top of my list of stops when I come back to Vancouver to visit.

No Fun City Bureaucracy Stands in the Way of Beer Lounges

It appears the City of Vancouver is once again living up to its reputation as being No-Fun City.

Despite the Provincial Government's announcement Feb 08 that breweries and distilleries will now be allowed to apply to have on-site lounges, special events areas (SEA), picnic areas and tour areas in BC, it appears Vancouver's restrictive zoning regulations and restrictive liquor laws will make it very difficult for breweries to take advantage of the changes.

This change to the law, which the Liquor Control and Licensing Branch (LCLB) states in  LCLB Policy Directive No 13-02 is, "designed to support the growing craft brewing and distilling industries by introducing another means for licensees to showcase their products," and allows breweries and distilleries "to apply for endorsement areas at their manufacturing site where patrons may consume liquor manufactured under the licence."

Currently, breweries can apply to have tasting rooms where they can either offer the general public free samples and/or sell up to 375ml (12oz) per person, per day to be consumed in the tasting room. The new regulations would allow breweries be able to sell their own beer on-site in amounts more than 375ml per person, per day for on-site consumption.

I had this clarified by a LCLB spokesperson who, via email, wrote, "the process for breweries and distilleries to apply for on-site lounges and special event areas will be the same as it is for wineries, in that it will be treated as an endorsement on the manufacturer licence, rather than a separate liquor primary licence."

This is the part the City of Vancouver's Liquor License Department (CVLLD) does not seem to understand. 

According to CVLLD Coordinator, Lucia Cumerlato, breweries would have to apply to have a “neighbourhood public house", which requires a liquor primary license, if they wanted to have an on-site beer lounge. This is in total contradiction to the LCLB's policy directive. Cumerlato did not seem to keen to communicate about the subject of liquor primary licenses and on-site, brewery beer lounges and referred me off to the City's Media Relation's before cutting off email communication when I attempted to get clarification on the licensing issue. 

The LCLB policy directive goes on to specify the lounges and SEA would allow minors, if accompanied by a parent or guardian, which is definitely not allowed in neighbourhood pubs.

It appears Lucia, or City Hall personnel responsible for liquor policy did not read LCLB Policy Directive 13-02.

In another written communication from the City of Vancouver, VEBB was informed, "(u)nder City bylaws, the opportunity to take advantage of this new legislation will depend on where the business is located as not all zones allow for Liquor Primary licences." The only zone classification that has the designation as an "outright approval" zone for breweries and distilleries in Vancouver is classified as M-2, which does not allow liquor primary licenses. There are several other zoning classifications that list breweries and distilleries as under the heading of "conditional use" but only one of them, M-1, allows liquor primary licenses.

The communication goes on to state that if current breweries are located in zoning that prohibits liquor primary licenses, "a business owner may choose to take advantage of the new legislation by submitting a rezoning application." This rezoning application would be looked at on a case-by-case basis and would involve, "consultation with the community to understand the implications of this new activity on the area."

I have not looked into any other municipalities as trying to figure out Vancouver has given me the headache to end all headaches. The current complicated zoning regulations combined with the City's restrictive liquor license policies make it very expensive and difficult to go about getting approval for an on-site beer lounge, not to mention that the process to get a building rezoned, then the liquor primary license application process would mean a long, drawn out time frame that could take years to navigate.

The confusing thing is that the tasting rooms are already in place and operating in some breweries. The move simply would allow the breweries to sell their product as opposed to giving it away. 

Maybe this change in provincial policy was just dropped suddenly in the lap of municipal governments, but the LCLB did say they "consulted" with the Union of BC Municipalities so local governments should have been aware the changes were coming. I get the sense the CVLLD just does not understand what the Liberals were intending and have no idea how to proceed forward, but it shouldn't be hard to figure out as wineries have been doing it for years with great success. If unpreparedness is the case, lets hope the city gets up to speed quickly as any application for lounges and SEA requires "local government /First Nation input as part of the licensing process."

At a time when several small breweries are looking to open within Vancouver City limits, the city should be looking at ways to support the vibrant craft beer industry. Breweries employ people directly and create secondary employment. They pay taxes, they buy local products, they create tourism, especially if they would be allowed to have these types of lounges which is why the BC Provincial Government originally gave wineries this ability to promote their own products on-site.

Those of us who are advocating actively for changes to the BC liquor laws hammer on the Provincial Government but often it is the local municipal governments who are putting restrictions in place with their zoning regulations and licensing practices. It might be time for advocacy and lobby groups to start targeting City Hall in an effort to make them understand that both the industry and consumers want to see lounges and SEA on-site at breweries. If Vision Vancouver really want to be a visionary government, they should clear up this confusion ASAP.

In the written communication from the City, it was stated that, "(t)he City is undertaking a city-wide Liquor Policy review this year, and as part of that work we will study the implications of the new provincial legislation." Let us hope they do because if not, and other municipalities may embrace these changes with open arms and you may see breweries moving out of the city soon to more welcoming and forward-thinking places in the province.

Will Beer Lounges Be Able to Exist in Vancouver Despite Provincial Go-Ahead

When Rich Coleman announced Feb 08 that breweries and distilleries, "can apply to have an on-site consumption area such as a lounge, tasting room or event area," to bring them in line with wineries who have enjoyed this option for years, the change was applauded, but many were cautiously optimistic at best, anticipating that it was not going to be an easy process.  

The concept, at face value, is a great idea and one that could produce even more growth in the craft beer industry, as having on-site beer lounges, with the ability to sell more than 12 oz of beer per person, per day, for on-site consumption, means that smaller breweries would have yet another revenue stream to help them stay in business. For nano-style breweries, with no business plan to grow significantly via off-site sales, not having to deal with distribution, major packaging or finding retail outlets to sell their brews means less hassle and overhead and an enhanced ability to stay afloat. 

It could be the change that would allow Vancouver to become a Portland North, with many small breweries within city limits.

But, in Vancouver, and most likely many other municipalities, it seems City Hall and the Provincial Government are not on the same page. From what I am understanding, Vancouver's municipal by-laws and zoning regulations, surrounding where breweries can be located and where liquor primary licenses are allowed, do not jive. It appears that breweries may not able to exist in zoning where liquor primary licenses are allowed therefore they cannot get approval from the city for on-site beer lounges which require a liquor primary license. 

I have tried to make sense of the Vancouver City Zoning Map but on first glance it looks like someone went on a bender of Blue Hawaiian cocktails, beet soup and corn chowder, then threw up on the page. There are so many zoning categories and sub-categories with different allowances and restrictions, I'm going to have to wait until the city gets back to me to confirm just what is allowed and where. 

As well, the city is very reticent to hand out new liquor primary licenses, so unless they change their attitude and look at the big picture in regards to supporting the craft beer industry within city limits, the changes in the law may have been for not, at least here in Vancouver. The process of getting a liquor primary is a long, difficult process in Vancouver and includes neighbourhood consultations, public meetings, telephone surveys in certain cases, council reports....it goes on and on. You can check it out here if you so desire.

It is not the first time one level of government has passed a law that conflicts with another level of government's laws or by-laws. Even though federally it was legal to serve a pint (20 oz/568ml), up until 2010 it was illegal in BC because the provincial serving size maximum for beer was 18oz/500ml. Again, when the Feds passed Bill C-311 allowing for the inter-provincial movement of wine, for personal use, many provinces, including BC at the time, did not allow inter-provincial movement of alcohol for personal use. The province has since tweaked their laws to be more in line with the Feds but if they hadn't, it basically would have rendered the Fed's change to the law a moot point.

This may be the case with beer lounges at breweries if something cannot be worked out by the city.

I am still in the early days of trying to clarify things. I have contacted Vancouver City Hall to try to clarify some things to see where they stand on the idea of beer lounges at breweries within city limits. I am not saying the city is against the idea, as I have no confirmation of that, but I am hearing that there are major road blocks. I just think that at this point the Provincial Government and the Vancouver Municipal Government may not be on the same page. Hopefully, at the local level, adjustments will be made for these types of licenses to be granted now that the way has been cleared by the province. It could be a great boost to the craft beer industry in Vancouver and with several small breweries, many who would benefit greatly from a small on-site beer lounge, in the planning stages or set to open in the city, it might be a great time for them to support this exploding industry.

In the meantime, don't expect to be enjoy more than a few taster glasses of beer at your favourite local brewery's tasting room any time soon.  It is going to take a while to figure out the logistics of this mess and you can bet it will be controversial with many NIMBY types and neo-prohibitionists against any support for small, local breweries with on-site consumption. I believe to get City Hall to support small breweries with beer lounges, both consumer and industry groups are going to have to lobby and advocate loudly.

CAMRA Vancouver, is this your next campaign? Campaign for Culture? It looks like it is time to start focusing locally instead of provincially in regards to advocating for the craft beer consumer.