Quidi Vidi Brewery Halts Taproom Operations Due to Beer Tax Strain
Quidi Vidi Brewery, a prominent craft brewery, is temporarily suspending its taproom operations. This decision takes effect during February and is attributed to mounting costs related to federal and provincial beer taxes.
Background on Beer Tax Strain
The brewery’s co-owner, Justin Fong, indicates that the move is a direct response to financial pressures facing the industry. The federal excise tax on alcohol, which was introduced by the Trudeau government, automatically rises each year. Although it has remained unchanged for the last two years, an increase is expected soon.
Call for Tax Reform
Fong is advocating for Premier Tony Wakeham to honor a previous campaign commitment to reduce taxation on the brewing sector. According to Fong, lower taxes could stimulate job creation within the industry. He cites Ontario’s decision to cut provincial beer taxes by approximately 50% as a beneficial move for brewers there.
Craft Beer Market Overview
In Newfoundland and Labrador, craft beer represents around 8% of the total beer sales. This figure is significantly lower compared to other Canadian provinces, where the larger brands like Molson and Labatt dominate the market.
- Craft beer consumption: 8% of total beer sales in Newfoundland and Labrador
- Remaining 90%: dominated by Molson and Labatt
- Job creation: Craft beer industry employs more locals than larger brands
Fong emphasizes the importance of the craft beer sector, stating that this 8% of the market provides more jobs for Newfoundlanders and Labradorians than the larger 90% segment held by Molson and Labatt. This highlights the critical need for supportive tax policies to nurture local breweries.
