Vernon chamber asks province to help craft distilleries compete with United States

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The Greater Vernon Chamber of Commerce is urging the province to do more to assist B.C. craft distilleries.

The chamber is asking the provincial government to remove regulatory barriers that hinder the growth of British Columbia’s craft distilleries, which makes it harder for them to compete with their U.S. counterparts.

“Following the province’s recent decision to temporarily remove certain U.S. spirits from BC Liquor Store shelves, local distilleries saw a boost in consumer interest. However, long-standing restrictions continue to limit their ability to scale operations and secure shelf space in government-controlled retail channels,” the chamber said in a press release.

Currently, B.C. craft distilleries must produce no more than 50,000 litres of spirits annually and use 100 per cent British Columbia-grown agricultural inputs to qualify for the "craft" designation and receive full markup relief. Exceeding this cap results in substantial financial penalties, effectively discouraging expansion and innovation.

“This is low-hanging fruit,” said Dan Proulx, chamber general manager. “While we are focused on cross-border and interprovincial trade barriers, we have the most control over our own regulations that are holding back homegrown producers. If we want to support local, we need to start by removing these unnecessary roadblocks.”

The chamber is calling on the provincial government to:

• Expand access to BC Liquor Stores: Implement policies that prioritize and promote British Columbia craft spirits in government liquor stores, offering consumers more local options. Giving BC Distillers the same VQA/QEP reimbursement they supply to BC wineries, and having all government liquor stores feature at 100% Craft BC Spirits Section will allow British Columbians the choice to buy local.
• Re-evaluate the production cap: Increase or eliminate the current 50,000-litre limit to allow craft distilleries to meet growing market demand without facing punitive markups. Local craft distillers are ready to step up and meet consumer demand for high-quality, BC-made spirits.

“We have the capacity, the expertise, and the passion to fill BC Liquor Store shelves with premium, homegrown spirits,” said Tyler Dyck, CEO of Okanagan Spirits Craft Distillery. “British Columbians want the option to buy local, and by modernizing these outdated policies, we can not only provide them with a quality product but also drive economic growth and job creation right here in our province.”