Friday, June 21, 2013

Free Samples of Cask Beer!: CAMRA Vancouver Wants to Bring Craft Beer to Local Farmers Markets

Imagine ambling down to your local farmers market on a sunny Saturday afternoon and being able to taste one or two sample-sized beers from your favourite, local brewery before purchasing a growler of fresh craft brew to throw into your recyclable shopping bags along with your organic organic veggies, free range eggs and fresh baked whole grain bread.

Crazy talk, you say?

Well here in BC, where adult consumers of alcohol are treated like children and it is illegal to sell or give out samples of any type of alcohol at farmers markets, yes. Government liquor inspectors to toss and turn all night and politicians run for cover at such suggestions saying it is not in the interest of public safety.

But not so in a few places south of the border, such as Oregon, Washington State and New York State, where consumers can purchase and consume beer at farmers markets and in some cases wine and spirits (read here) and you know what, from the reports I have read and heard, there are no gangs of drunken youths or irresponsible adults overturning the organic apple cart. As a result, many other states are considering passing laws allowing booze sales at local markets.

In a bid to raise awareness about this issue, The Campaign for Real Ale BC - Vancouver Branch (CAMRA Vancouver), has struck a deal with the Vancouver's Farmer's Market to set up shop at community tables provided at five different markets over the summer.

To get market goer's attention, CAMRA are setting up a "pin" (20 litre cask) at their table with a sign saying "free samples". Once lured to the table by the thought of a free sample of cask beer, the consumer sees the fine print under the "free sample" sign explaining the illegalities of alcohol at farmers markets in BC and CAMRA representatives are there to answer questions and provide education about this issue and other CAMRA campaigns such as Fess Up to Serving Sizes (FUSS), Bring Your Own Craft Beer (BYOCB) and the Save Growler Campaign and about CAMRA Vancouver and what they stand for in general. If interested, people are also able to sign up for a membership onthe spot and join the CAMRA cause.

CAMRA is also encouraging those who support the idea of beer sales at farmers markets to write Attorney General Suzanne Anton and her Parliamentary Secretary, John Yap to inform them of their desire to be able to sample and purchase craft beer at Vancouver Farmers Markets. To help get the letter campaign going, CAMRA has been printing out form letters which they are offering to mail if signed at the markets. The letter can also be downloaded from their website (download here) and mailed in by the consumer.

Free samples! Not here in BC! Campaign For Real Ale Vancouver is asking the Provincial Gov't why beer samples and sales are
illegal in BC while legal in places like Oregon and Washington States

"All the people we spoke to knew it was illegal but didn't know why," states CAMRA Vancouver President, Adam Chatburn on CAMRA's website. "A couple of the people who signed letters were visiting from Seattle and Oregon and were surprised that it wasn't possible for local artisan alcohol products to be sold at farmers markets."

According to Chatburn, this is not a campaign pushing to have beer gardens and on-site consumption, other than limited samples and is about giving craft beer consumers the chance to purchase growlers from local craft breweries at Vancouver Farmers Markets. It is an idea that fits in with the concept of consumers buying locally produced products directly from the producer.

CAMRA has taken the idea to the BC Legislature, where they met with several NDP MLAs and according Chatburn, the idea was well received, especially supported by long-time NDP MLA Jenny Kwan. Chatburn has also met with Vancouver City Councillor Heather Deal where he brought up the idea of beer sales at Vancouver Farmers Markets.

CAMRA Vancouver has already attended two markets, in Kitsilano and the West End and the response has been good. 

"Everyone who we spoke to about it at the markets agreed to sign a letter and we quickly ran out of letters at our first market, we also ran out at the West End market and in total so far we have over 100 letters ready to go," reports Chatburn. 

They are scheduled to be at the Main Street Market, July 10th, Trout Lake, July 13th and Kerrisdale August 10th. So if you are a CAMRA supporter and in favour of beer sales at Farmers Markets, get out and support the cause.  Who knows, if enough people write letters at this time when liquor laws are being reviewed, reformed and modernized, we may soon be able to fill our growlers and buy great, locally-produced foods at BC farmers markets.

Thursday, June 20, 2013

BC Liquor Law Reform Post Election: Where Do We Go From Here?

The election hangover has long past and British Columbians who were excited about the possibility of the NDP taking charge and following through on their promise to reform and modernize our provincial liquor laws "one practical step at a time" have come to grips with the reality that we have four more years ahead of us with the Liberals steering the political ship.

Hopefully not four more years of the same old, same old in regards to BC liquor policies, liquor law enforcement and support of the craft beer industry.

Liberals have made some positive changes to our liquor laws and policies over the past few years but have not "overhauled" them as they claimed in press release in Feb of this year (read press release here). The Liberal approach has been haphazard at best and reactionary, described by the NDP as a "piecemeal approach to liquor policy," and not a part of a systematic, comprehensive plan.

The NDP had made it loud and clear before and during the election that they were committed to a full-on review of current BC liquor laws, which would have included a comprehensive consultation with the BC liquor industry, to work out an effective strategy to modernize our liquor policies which even the Liberals have described as our archaic. They have, to this point, also been very open to listening to consumers and I have had several meetings with several NDP MLAs where we discussed issues that negatively impact craft beer consumers.

We will never know if the NDP would have been able to keep that election promise, but my sense  is that the commitment is real and that they are ready to continue to push the Liberals, from the opposition side of the BC Legislature, to start a full review.

So where do we go from here?

Let's start with looking at those who will be playing the modernize BC liquor law game and how this may impact the craft beer scene, at least in the short term.

Starting Line-up:

Former Vancouver City Councilor, Suzanne Anton, has been appointed the new Attorney General and Justice Minister and the alcohol portfolio now falls under her ministry's umbrella. Anton may bring a new perspective and energy to old issues as she is new to provincial politics. A government backgrounder introducing the new Liberal Cabinet states Anton will, "(b)egin consultations to modernize B.C.’s liquor laws". When Anton was running as an NPA mayoral candidate during the 2011 Vancouver City Municipal Election she stated in an email to CAMRA Vancouver she, “would work closely" with organizations like CAMRA Vancouver and "review opportunities to expand and support" the craft beer sector in Vancouver. 

Let's hope she still has this mindset on the bigger provincial stage where she is actually in THE position to be a game changer for the craft beer industry and the consumers who support it.

Anton will not be solely responsible for overseeing the massive task of reviewing and modernizing BC liquor laws. John Yap, probably best known as having been the minister in charge of multiculturalism who stepped down as a result of the recent Liberal ethnic voter scandal, has been appointed the Parliamentary Secretary to the Minister of Justice and Attorney General for Liquor Policy Reform. According to the government backgrounder, Yap will "(l)ead the stakeholder consultation on modernizing B.C.’s antiquated liquor laws and recommend improvements to the minister to take to Cabinet. 

I don't know much about Yap, nor do many I have talked to who are activists and advocates related to craft beer, so we will have to wait and see how consultative and invested he is in regards to liquor law review and reform. Liberals historically have not put much stock into what consumers want and have instead pandered to their political cronies or made changes to quell issues where media and public pressure was getting just a little too much. I am not very confident that the former multicultural minister who claims to not have known about anything about the ethnic voter scandal until the NDP exposed it will be on the ball enough to tackle the massive task of consulting with all the various sectors of industry that often have conflicting wants and needs in regards to liquor law changes. 

Great news for the craft beer scene in the BC is that NDP MLA Shane Simpson is back in the game and has been tasked with being the official critic in regards to the Liberal liquor modernization strategy. Simpson has been a great supporter of the BC craft beer industry and consumers in the past and supported campaigns such as CAMRA Vancouver's Fess Up to Serving Sizes  (FUSS) and Bring Your Own Craft Beer (BYOCB), bringing these issues up for debate in the BC legislature.  As well, Simpson played a huge roll in halting the Liberal's controversial plan to privatize the BC Liquor Distribution Branch's warehouse system and he has a vested interest in supporting the BC craft beer industry as he has four craft breweries in his constituency. Simpson is stand-up kind of guy and one who, at least as far as my dealings with him, follows through on what he says he will do.


On the bench:

With Suzanne Anton and John Yap being tasked with overseeing the Liberal liquor policies, this means Rich Coleman is no longer in the game, at least for the moment. Coleman has been the minister in charge of the alcohol portfolio on and off for almost 10 years and it always seems to fall back in his lap when any whiff of controversy arises. Coleman has not particularly been the champion of the craft beer consumer and, at least from my perspective, is very wine-centric and does not take the craft beer movement very seriously. 

Coleman completely dismissed the FUSS  and BYOCB campaigns and has continually snubbed the BC craft beer industry such as when he recently reported BC will appoint a special wine envoy charged with the task of finding new markets for BC wines while allowing his BC Liquor Distribution Branch to send a high ranking representative to Washington DC to give a talk on how American craft breweries can break into the BC market to compete with the locals who are already struggling to get shelf space in BC Liquor Store shelves. During the BYOCB campaign I sent Coleman an email trying to advocate for the inclusion of beer in the corkage program. In his response, he basically summed up his argument against corkage for beer and attitude towards the BC craft beer scene  writing, "while we appreciate the evolving nature and uniqueness of the variety of beer, it is not in the same category as wine". 

Seeing Coleman distanced from the liquor scene is a huge positive in my opinion. 

Also out of the game is Karen Ayers who has been the General Manager for the Liquor Control and Licensing Branch (LCLB). Ayers and is seen by many as the person who has been most resistant to liquor law changes and who has the power to right liquor policy as she sees fit in some cases. From a distance, the LCLB appears to be like a fiefdom, with little to no accountability to the consumers and voters of the province. She has used the 2011 Vancouver Stanley Cup Riot as a scare tactic to continue justifying how all BC alcohol consumers should treated like children who have no self-control to act appropriately. 

Ayers announced her retirement just before the recent election and is to step aside at the end of this month. Under her watch, a culture of intimidation and bullying has been cultivated in the LCLB to the point where licensees and those with a financial stake in the liquor industry do not want to publicly raise issues or voice complaints for fear of retribution. The LCLB, under her direction, has enforced laws in a very inconsistent and random manner, hiding behind the often-outdated laws when convenient and ignoring them as insignificant when it suits them. You have to look no further than how Ayers has treated the Great Canadian Beer Festival (read here) while ignoring consumers' rights and consumer issues (here). There are many who were literally celebrating when Ayers announced her retirement and hopefully her replacement will be more open to change and considering other points of view other than her own.

Wildcard game-changer:

Christy Clark could play a major role in how our liquor reform is shaped if she is successful in her bid to be elected in the Westside-Kelowna riding in the by-election that has been called for July 10th. This riding is smack-dab in the middle of wine country, so you know that if Clark is elected as the area's MLA, she will have the wine industry representatives whispering in her ear about what that particular sector of the liquor industry desires. This may prompt Clark to push for changes to happen sooner than later, but I fear that the craft beer industry will continue to play second fiddle to the wine folks and will not have their voices heard as Clark tries to soothe and woo her constituents   


It will be interesting to see where this all goes. It seems both sides of the BC legislature are committed to reviewing BC liquor laws and it appears the Liberals are going to consult with the various sectors of the alcohol industry. Let us hope they include consulting with consumers and CAMRA BC, who have already reached out to the Liberals politely demanding to be included in the process.

I do not hold out great hope that the craft beer voice will be heard as loudly as the other sectors of the alcohol industry here in BC, but I guess we will have to wait and see.

Wednesday, June 12, 2013

Vancouver Craft Beer Lovers Hold Fate of Beer Lounges in Their Own Hands

Vancouver-area craft beer lovers literally hold the fate of brewery lounges in their own hands and have the rare opportunity to be consulted directly in regards to liquor law changes as yesterday Vancouver City Council officially passed a report from the Vancouver City General Manager of Planning and Development Services recommending that changes be made to City zoning and licensing by-laws to allow for the sale and consumption of beer in lounges located within breweries.

That matter will now be referred to a public hearing, the final step in the approval process, which should be scheduled in a "few weeks", according to NPA City Clr George Affleck, whose motion (see here) started things moving forward. The public hearing is where those in the private and public sectors of the community get to come out and have their say on the matter directly to City Council so it is not just a rubber stamp type step in the process. If major opposition to beer lounges show up and successfully plead their case and those in favour are silent, or less prominent, the whole process could grind to a halt.

"Until the public have had a chance to speak to it, I would not want to speculate on what will happen. But thus far, we have seen very little opposition to this and a ton of support," stated Clr Affleck last week after seeing the report which recommends breweries, distilleries and wineries be allowed to have licensed, on-site lounges, no bigger than 80 m2. To give you an idea of the size, if you have visited Parallel 49's tasting room, it is well within this size limit.

Currently in Vancouver on-site (meaning at the brewery) patron consumption opportunities are limited to tasting rooms where breweries can charge for samples but are limited to selling 375ml per patron per day, otherwise samples can be offered to the public at no charge. Because of the fact that breweries cannot charge for their products in tasting rooms, few have bothered to build and staff them. 

This single change to Vancouver by-laws could change the face of the local beer scene in Vancouver completely and according to the report, gives breweries, "a more lucrative means of showcasing their product." It will help support small, local breweries and encourage new growth in the industry. 

You need to look no further in BC than to the wine industry who have been allowed this type of lounge for years. Areas like the Naramata Bench have taken full advantage of the lounge opportunity to draw tourists and locals alike to tour from winery lounge to winery lounge to try different wines from the source and purchase products. It is a far more intimate consumer experience and connects the consumer directly to the point of production. 

This type of lounge has has also helped make places like Portland Oregon and Seattle, Washington beer tourist meccas and they bring BIG dollars into the cities as beer lovers visit the breweries located within city limits to enjoy themselves.  Food and entertainment will be allowed as well and if Vancouver sticks to the intentions of the Provincial Government when they made changes to the laws March 1/13, minors accompanied by responsible adults will also be allowed, making these lounges family friendly.

This is the time for groups like CAMRA Vancouver to shine and make a difference by getting their members to come out to the meeting to ensure the pro side of the argument gets heard loud and clear. CAMRA Vancouver President Adam Chatburn has already been very involved in getting things to this point, having spoken to City Councillor Heather Deal a few months back in a private meeting and having spoken at the council meeting where the motion was presented. 

"CAMRA BC - Vancouver Chapter will be there all the way to represent the craft beer consumers of the city and we look forward to the public meeting where we will show just how important these positive changes are to the future of the city and the province," stated Chatburn last week.

Let's hope craft beer consumers and industry types are as committed as Chatburn to come out the the public hearing so we can get this passed and written into law as I would like nothing better than to sit in a local beer lounge by the end of summer to enjoy a fresh, locally brewed beer straight from the source.

I would hate to see the process get this far only to be scuttled by consumer apathy for getting involved in the political process.

Monday, June 10, 2013

Vancouver Beer Lounges One Step Closer to a Reality But Still Requires Public Support

Vancouver craft breweries are one step closer to being able to offer their thirsty and adoring customers the opportunity to purchase and consume fresh beers from the source in on-site (at the brewery) lounges.

In a report (read report here) received by Vancouver City Council from Vancouver City General Manager of Planning and Development Services, recommendations have been made to allow for amendments to the Vancouver zoning and development by-laws to permit licensed on-site lounges at breweries.

The report was generated as a result of a motion, tabled by NPA Councillor George Affleck, requesting city staff to look into what changes needed to be made to Vancouver by-laws to allow for licensed, on-site lounges in industrial zones. The motion was passed unanimously April 23rd by Vancouver City Council and the report was presented to Mayor Robertson and City Council last week.

In short, breweries located within Vancouver's city limits may be able to apply to have beer lounges by the end of summer, giving the Vancouver craft beer scene yet another boost and allow it to showcase fresh, local beers similar to how it is done in places like Portland, Oregon where beer tourism is BIG business for the city. 

March 1/13 BC liquor laws changed to allow breweries and distilleries to apply for endorsements to their existing manufacturer's licenses to allow them to have on-site lounges where they could sell their products directly to consumers to be consumed in the lounge, bringing them in line with wineries who have had that opportunity for years. Despite the ability under provincial laws, Vancouver City by-laws and regulations did not allow for the type of liquor liquor license required for lounges to exist in industrial areas that allow breweries, distilleries and wineries to operate.

Currently in Vancouver, breweries can have tasting lounges where they are permitted to sell only one 12-oz beer per person, per day but are permitted to give out multiple free samples. They cannot have entertainment or even televisions! They can sell beer to be consumed off the premises, such as growlers and packaged products.

I posted about the conflict here, a story that was picked up by mainstream media, and had attempted to get some response from Vancouver City Mayor Gregor Robertson and his City Council as to whether they had plans to make changes to support the desire by several local breweries to take advantage of the opportunity to apply to have lounges. After being repeatedly ignored by the mayor and his crew, I posted an open letter (read here), to Mayor Gregor and his council scolding them for their lack of accountability to the voters of Vancouver and as a result Clr Affleck, who described the open letter as "nasty", contacted me to take a meeting with him to discuss the beer lounge issue. After listening to what I had to say, Affleck saw how having such lounges in Vancouver would support the local craft beer industry and promote the city through tourism similar to what is seen in cities like Portland and Seattle.

Mayor Gregor and his Vision Vancouver gang quickly jumped on the band wagon and threw their support behind Affleck's motion, stating they had been working behind the scenes on resolving the issues before Affleck's motion was tabled. I am not saying they were not doing so, as I really have no idea, but I can say that they were given ample opportunity to let those interested in the issue know and remained silent. I am fairly confident that if Affleck had not pushed the issue with his motion that the wheels of City bureaucracy would have turned very slowly and we would not be at this advanced stage in the process so quickly.

"I am so pleased to see staff reporting back so quickly," stated Affleck. "The industry is on the verge of exploding in Vancouver. Changes like these, which help brewers and distillers succeed, is another step for Vancouver soon becoming an international destination for people passionate about beer and spirits."

The report will go before City Council this week I am told and if accepted, it will be referred to a public hearing where anyone who wants to speak about the proposed changes can have their say in front of City Council. Unless there is major opposition that sways City Council to rethink their position, the recommended changes will then be written into Vancouver City by-laws and will become law. All reports I am hearing is that the whole process should be completed by the end of July.

"I am hopeful that Council will pass this unanimously (Tuesday), thus sending it to public hearing process," says Affleck. "Until the public have had a chance to speak to it, I would not want to speculate on what will happen. But thus far, we have seen very little opposition to this and a ton of support."

If the recommended changes to Vancouver by-laws are made, breweries, distilleries and wineries located in areas zoned M-1, M-2, I-1, I-2, I-3, IC-1, IC-2 and IC-3 would be allowed to apply for endorsements to have on-site lounges to a maximum size of 80 m2. Currently it is virtually impossible to run a lounge in these types of industrial zones (read here). 

Special event area endorsements will also be allowed and breweries will be allowed to hold up to 2 special events, i.e. arts and cultural events, a month. 

Although the majority of work has been done by city staff, the public hearing is still a roadblock. City Council will need to see supporters of the changes out at the hearing and hear them speaking as to why they should be allowed. I know the local breweries are banding together and CAMRA Vancouver is fully behind the proposed by-law amendments. In fact CAMRA Vancouver President Adam Chatburn spoke at the original council meeting where Affleck's motion was passed.

"I'm pleased that the city council has moved forward on the issue of allowing beer lounges at breweries, there's still a long way to go but each step brings us closer to being a city that prides itself on our craft beer culture," stated Chatburn. "CAMRA BC - Vancouver Chapter will be there all the way to represent the craft beer consumers of the city and we look forward to the public meeting where we will show just how important these positive changes are to the future of the city and the province."

So CAMRA members stay up-to-date on this issue as I am sure President Chatburn will put out a call for supporters to attend the public hearing. You can be sure there will be opposition and possibly from very influential and organized camps such as the BC Alliance of Beverage Licensees (ABLE), the industry association who represents BC liquor primary establishments, who have been making noises they are opposed to beer lounges at breweries, fearing competition. I have personally had a few on-line Twitter exchanges with ABLE's Executive Director Ian Baillie who seems very anti-lounge endorsements for breweries. 

So, stay tuned if you want to be able to amble down to your local craft brewery for a mug of your favourite brew. The ball is in our court and craft beer consumers and industry types can ensure these proposed changes get written into law by going to the public hearing to support the cause. 

It just goes to show you, it is possible to fight City Hall and win...




Thursday, April 25, 2013

Unanimous Support From City Council Brings Beers Lounges Closer to Reality

The local craft beer industry was given a glimmer of hope Wednesday after Vancouver City Council voted unanimously to support a motion, tabled by NPA Councilor George Affleck, directing city staff to instigate what changes need to be made to city zoning and licensing regulations to allow for on-site beer lounges.

The motion, which directs Vancouver City, "staff report back to Council on the required changes to the relevant regulations within the City of Vancouver that would permit micro-breweries, wineries and distilleries on industrial land to sample products produced on-site, thus being consistent with provincial liquor policy," in itself does not lead local brewers out of the bureaucratic woods, but at least has given them some hope that a path will soon be available to sell their beers in on-site lounges for consumption beyond the currently allowed 12 oz per-person, per-day.

Recent changes to BC liquor laws have made it possible for breweries and distilleries to apply for endorsements to their manufacturing licenses to have on-site lounges, where patrons can purchase and consume products produced on-site, putting them in line with wineries who have been able to do so for decades, but Vancouver City zoning and licensing regulations have made it next to impossible for beer, wine and liquor producers in the city to take advantage of the on-site lounge possibility. Currently tasting lounges are allowed, but except for the one 12-oz beer which can be charged for, all other beers must be given away as tasting samples.

These types of lounges, which have helped cities like Portland and Seattle become Pacific Northwest craft beer tourist destinations, could set up a win-win-win situation for the local craft beer industry, Vancouver City and and local and visiting craft beer consumers. Existing and future breweries would have yet another way to market their products and produce revenue, the City would benefit from an increase in beer tourism and economic spin-offs of having a vibrant local industry and consumers would have greater access to world-class, locally produced beers.

After writing a blog post on the situation (read here), I attempted to contact Mayor Gregor Robertson and Vancouver City Council to try to start some sort of dialogue about how supporting these types of lounges could be a great move for Vancouver, but I received no response prompting me to write a scathing open letter voicing my displeasure at being repeatedly ignored by local politicians.

Clr Affleck was the only person to respond and after meeting face-to-face with me tabled the motion which since being passed officially signals Vancouver City Council's intent to look into how to align City by-laws and regulations with provincial liquor laws regarding on-site lounges.

After the motion was passed late Wednesday, Clr Affleck, the lone NPA representative on Vancouver City Council, stated he was "very pleased to get unanimous support," and believes passing the motion was, "an important move forward for Vancouver and sets us (Vancouver) up to be micro brewery tourism destination location."

After the motion was tabled last week, Mayor Gregor and Vision Clr Heather Deal immediately, via Twitter, made it be known they had been working with Vancouver City staff  on a solution to allow for the lounges, but if this was true, they were keeping their activities very quiet. When CAMRA Vancouver President Adam Chatburn met with Deal a few weeks ago to talk about the beer lounge impasse, Deal only stated "they would look into fixing the problem" and gave Chatburn no indication as to when or how and definitely did not offer to table an official motion before City Council.

Another positive to come out of the Affleck motion is that local, Vancouver-based breweries have banded together to create one, organized voice. This unofficial, and I stress unofficial, "Vancouver Craft Brewers Guild" is very significant as local brewery representatives are finally seeing the importance of forming a united front to advocate for the local craft beer industry, for the greater good, while still fighting it out in the marketplace with their brews as individual breweries. Thirteen signatures, from 11 different existing or soon-to-be-opened Vancouver breweries were present on a letter presented to City Council, "respectfully asking for the opportunity to consult with planning and building departments as they draft forthcoming regulations pertaining to brewery lounges." City representatives did in fact meet with local brewery representatives before Wednesday's debate on the motion to listen to their concerns and wishes.

The motion was also supported strongly by CAMRA Vancouver, with President Chatburn both sending a pre-debate letter outlining CAMRA's position supporting beer lounges and by speaking directly to City Councilors at the debate on behalf of Vancouver craft beer consumers.

No offical timeline has been set for the report to come back to City Council, but Affleck hopes "by summer" so hopefully we will have a better idea as to how much the City of Vancouver really supports this beer lounge idea or whether they were simply buying time to take off pressure in regards to this issue.

Time will tell, but I am cautiously optimistic as this is the first time in a long time the local craft beer industry and craft beer consumers have organized and worked together and have been successful penetrating the political process to bring about possible positive, meaningful; change.

Let us hope this trend continues.

Tuesday, April 16, 2013

Beer Lounge Possibilities in Vancouver to be Debated by City Council

Vancouver City Council is set to debate a motion put forward by NPA City Councilor George Affleck that proposes to look at what changes need to be made to allow for on-site consumption lounges for breweries, wineries and distilleries in Vancouver.

Several liquor law changes were announced Feb 08/13 by Rich Coleman, the minister responsible for alcohol policy in BC, among them a change allowing for breweries and distilleries to be allowed to apply for endorsements to their manufacturing licenses to have an on-site consumption area such as a lounge, tasting room or event area, putting them in line with the province's wineries who were allowed these possibilities for years. Due to zoning by-laws and liquor licensing policies in Vancouver, it was next to impossible to be able to apply for these types of on-site lounges as the zoning areas that typically allow for breweries, distilleries and wineries do not allow for liquor primary licensing.  

I wrote about this issue here, and here. I also wrote an email to Mayor Gregor Robertson and City Council about the conflict between Vancouver City zoning & licensing and Provincial liquor policy and received absolutely no response. I then wrote an open letter to Mayor Gregor and his City Council and finally did receive one response, from Affleck who met with me, listened to what I had to say and who put the motion together (see end of post for actual motion) triggering the debate set for the Vancouver City Council meeting April 23rd. It is an open meeting which allows for anyone who wants to speak directly to City Council on this subject to sign up with the City Clerk ahead of time to get a slot to speak.

“Current City of Vancouver regulations do not allow for brewery and distillery operations to offer customers samples and purchasing options. I’m asking staff to come back to Council with recommendations on how we can change that” said Affleck in a news release April 16.

“This motion is intended to bring the City of Vancouver up to date with Provincial policy directives, and is aimed at giving local breweries and distilleries a greater chance to thrive while adding to the vibrancy of the city’s robust food scene.”

It appears from the Twitter banter from @MayorGregor that the Mayor's office is now on-board with trying to make the necessary changes to allow breweries, distilleries and wineries and Affleck seems confident, stating in his press release that he had, "already received a great deal of support from the Mayor’s office since submitting the motion and am confident it will receive unanimous support at the Council table.”

On-site beer lounges could really open up Vancouver for smaller nano-style breweries to open up and sell their beer directly to consumers from the actual point of production. This in turn could be a boon for local consumers and beer tourists alike, giving Vancouver the opportunity to become something of a Portland North.

The motion put forward by George Affleck
Enabling the Micro-brewery and Distillery Industry

MOVER: George Affleck
SECONDER:

WHEREAS:

1. The City of Vancouver prides itself on its local tourism sector;

2. The City of Vancouver wants to foster a robust local food scene, which includes the distilling of spirits, the making of wine and brewing of craft beer;

3. The Province of BC announced Policy Directive 13-02 effective March 1, 2013, which allows for changes to brewery and distillery operations in the province and the ability for customers to sample and purchase locally produced spirits and beer for on-site consumption;

4. The policy change thus align regulations for brewers and distillers with wineries who have been able to serve and sell wine for on-site consumption for years

5. The City of Vancouver's Zoning and Development Bylaw only permits micro-breweries, wineries and distilleries on industrial land to serve or sell product in a limited way because industrial land is not zoned for liquor primary;

THEREFORE BE IT RESOLVED

A. THAT staff report back to Council on the required changes to the relevant regulations within the City of Vancouver that would permit micro-breweries, wineries and distilleries on industrial land to sample products produced on-site, thus being consistent with provincial liquor policy.

Thursday, March 28, 2013

VEBB Post & CAMRA Vancouver Campaign Prompts NDP Promise to Scrap Growler Mark-up Increase

Yesterday the Campaign for Real Ale (CAMRA) BC - Vancouver Branch  scored what could become a major victory for BC craft beer consumers and craft breweries when NDP liquor critic Maurine Karagianis announced that if elected the NDP would scrap the increased mark-up for growlers being implemented by the BC Liquor Distribution Branch (LDB) as a result of them reclassifying the 1.8 litre, refillable jugs as "packaged" product.


Classifying growlers as draught would help
support small local breweries like Townsite
in Powell River
Growlers are, as mentioned, refillable jugs, used by consumers to buy fresh, draft beer directly from the brewery to be taken away for consumption elsewhere. Growlers date back to pre-Prohibition and have made a huge comeback in recent months with the opening of numerous small, craft breweries around the province. Growlers are unique in that consumers travel to the actual brewery to buy beer directly from the brewer and are usually cheaper than six-packs which are of comparable volume. The growlers are reusable, therefore great for the environment and cut down on a brewery's carbon footprint as the beer does not need to be transported to liquor stores, bars or restaurants to be sold.

The story of the reclassification and impending mark-up increase was first broken here on the VanEast Beer Blog and on the same day CAMRA Vancouver President Adam Chatburn launched the "Save the Growler Campaign" aimed at stopping the increase which will either result in less profits for breweries selling growlers or increased consumer prices, depending on whether the breweries decided to eat the increase or pass it on to their customers. 

The campaign quickly gained momentum as mainstream media picked up the story. CAMRA's "Save the Growler" petition has over 1900 signatures as of today, gathered in four weeks since the launch of their campaign. March 11th saw CAMRA BC President Rick Green and CAMRA Vancouver President Adam Chatburn travel to Victoria to join up with CAMRA BC VP Maureen Blaseckie, who had arranged for the three to meet with several NDP MLAs, including Karagianis, at the BC Legislature with the growler issue being front and centre of the issues they discussed. 

"This is unfair tax on small business and a sustainable industry has to go," stated Karagianis in a media release. "When it comes to liquor policy, this government (BC Liberals) just doesn't get it. Just weeks after a long-awaited announcement of a handful of liquor law changes, they are at it again, slipping through a tax that will make life harder for the growing (craft beer) industry."



To give a little back ground, breweries must pay a mark-up per litre of beer to the LDB and the amount they pay depends on their brewery's annual production levels and whether the product is sold as "packaged" product, which according to the LDB are "products that are packaged for customer consumption off-site," or "draught", which is product consumed at the point of purchase. 

Mark-ups as of April 1/13 (HL is 100 litres)


Breweries (>160,000 HL)
Packaged  - $1.63 
Draught - $1.12 

Breweries (>15,000 ≤ 160,000 HL)
Packaged - $1.08 
Draught -    $0.75 

Breweries (≤ 15,000 HL)
Packaged - $0.97 
Draught - $0.67 


For the most part, breweries that sell growlers are in the 15,000 HL or less category of production so the increase from draught to packaged is going to rise from $.67 to $.97 per litre. That may not sound much, but if you have a brewery that sells mainly growlers, which many new nano-breweries are planning to do, then this $.30 increase becomes thousands of dollars more being paid to the LDB each year, a number that can really impede small breweries operating on a tight budgets.

There has been mass confusion lately about how mark-ups regarding growlers are implemented, with some breweries being charged the lower draught rate per litre and some the higher packaged rate for growler refills creating an uneven playing field in the marketplace. Some brewery representatives were shocked when they found out they had been paying the LDB 30% more of a mark-up than some of their competitors, all at the direction of LDB officials.

It was obvious that the LDB had no handle on what was going on with breweries selling growlers. 

When I found out about this reclassification and put in a media request to the LDB for information about growler mark-up policy, I was told repeatedly for three weeks that no one from the LDB could supply me with an explanation as to how growlers were marked up, information that should be very easy to access and explain. 

When I finally did get an explanation in an email Feb 28/13, I was told, "currently, the packaged mark-up rate is applied to the first Growler fill and the draught mark-up rate is applied to refills," but 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."  

In another email forwarded from LDB General Manager Blaine Lawson March 26/13, it was explained that, 
"Growlers were subject to the packaged beer mark-up rate for over a decade, until January 2012 when an error was made that created a distinction between the first fill and subsequent refills.  We recently reviewed the application of mark-up on Growlers and reaffirmed that the packaged rate is the correct rate that should be applied.  The packaged mark-up rate is applied to products that are packaged for customer consumption off-site. Growlers clearly fall within this category.  The Liquor Distribution Branch has a responsibility to apply mark-up equitably within product categories and the correction of this error was done for that purpose."
It seems that if the NDP are elected, all this will be a moot point as they have committed to lower the growler rate back to the draught rate in order to help support small businesses in one of BC's fastest growing industries and help promote the sale of these ecologically friendly jugs. But it is pre-election, so promises will be coming from all political sides at a fast and furious rate and we all know how many times these pre-election promises get forgotten about post-election.

If the promise is kept and the roll-back implemented, it will be the first major campaign victory for CAMRA here in BC and hopefully the beginning of CAMRA being included in any future consultations in regards to reviewing and reforming liquor laws. It may also help CAMRA get some support in regards to their other existing campaigns like FUSS and BYOCB, both of which the NDP have shown interest in  over the past year, or any future issues they see fit to tackle on behalf of the province's craft beer consumers.