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For Craft Producers

A craft manufacturer is a micro producer (micro brewery, micro distillery, cottage winery) issued a permit by the Saskatchewan Liquor and Gaming Authority (SLGA) authorizing them to produce beverage alcohol within the Province of Saskatchewan.

After receiving authorization from SLGA, a manufacturer may produce more than one type of alcohol (e.g. beer, wine, spirits and refreshments) and must adhere to the specific production level requirements for each type in order to remain classified as a craft manufacturer. Where a manufacturer produces a type of alcohol that does not meet the requirements of a micro producer for that type of alcohol, it would become subject to the rules and requirements of a regional or national manufacturer.

Learn more about a manufacturer permit.

The Government of Saskatchewan announced changes in 2016 for the craft alcohol industry. These changes are intended to:

Make it easy to get started as a craft alcohol producer in Saskatchewan

Starting a business can be difficult. Government is committed to making it easier to get up and running as a craft producer in Saskatchewan. SLGA will be launching the “Getting Started Hub,” a one-stop shop for the information you will need to get started as a craft producer in Saskatchewan. Check back for future updates.

Create a competitive markup structure

A markup is applied to craft alcohol products distributed by SLGA. The markup structures for craft producers were recently changed.

The markup structure for cottage wineries and microdistilleries has been expanded to include refreshment beverages (example: ciders, coolers) and production limits have been increased from 50,000 to 200,000 litres with gradual markup increases as production grows. Markup structures for beer producers were also changed. Learn about the new markup structures.

Reduce red tape for craft producers

Policies and regulations have been updated to remove unnecessary barriers for craft producers. These changes allow craft producers streamlined access to the retail market and increased options when retailing their products. Learn about how red tape has been reduced.

Streamline access to the marketplace

Craft producers now have the option to arrange direct distribution of their products to all retailers. Saskatchewan made products distributed directly to retailers are subject to a production levy which is less than the markup applied to craft products distributed by SLGA. Learn about streamlined access to the marketplace.


Markup rates

A markup is applied to craft alcohol products distributed by SLGA. A percentage of the landed cost is applied to the price for which SLGA acquires the product. Saskatchewan’s markup structure is available to any craft producer that qualifies based on global production.

The recent markup changes include a new separate category for refreshment beverages and the 50,000L limit is being expanded to 200,000L with small, incremental increases in rates as producer volumes grow.

Markup Rates - Refreshments, Wine and Spirits

Annual Global Production (L)

Wholesale Markup

Refreshments

Wine

Spirits

<25,000

37%

43%

70%

25,001 to 50,000

41%

47%

77%

50,001 to 75,000

47%

53%

85%

75,001 to 100,000

54%

61%

94%

100,001 to 150,000

62%

70%

104%

150,001 to 200,000

71%

81%

114%

>200,000 (National)

83%

94%

125%

 

For beer producers, a new graduated markup scale with incremental increases has also been implemented. It applies to all beer products sold through SLGA’s Distribution Centre or a third party beer distributor.

Beer Markup Rates

Annual Global Production (HL)

Wholesale Markup

<2,500

.400/L

 

 

2,501-5,000

.500/L

 

 

5,001-7,500

.600/L

 

 

7,501-10,000

.650/L

 

 

10,0001-20,000

.700/L

 

 

20,001-200,000

.750/L

 

 

>200,000

1.565/L

 

 


Eliminated Red Tape


Old Regulation/Policy

 

New Regulation/Policy

Craft alcohol producers may not charge for samples.

Craft alcohol producers may charge for product samples and full size servings in their hospitality suites.

Craft alcohol producers are only allowed to make retail sales at their production site.

Craft alcohol producers may establish one retail outlet at a location other than their production site. Additional retail outlets will be established through a permit endorsement. Only alcohol products produced by Saskatchewan craft alcohol producers will be eligible for sale at craft alcohol retail outlets.

Craft alcohol producers may only retail or distribute their own craft alcohol products.

Craft alcohol producers may retail any craft alcohol product produced by a Saskatchewan craft alcohol producer.

Retailers are not allowed to fill growlers with cider.

Cider may be sold in growlers by all retailers (off-sales, franchises, private stores, SLGA stores).

In the event SLGA agrees to sell a craft alcohol product through its retail stores, the same product may not be sold for a lower price by the craft alcohol producer.

 

Subject to social reference pricing, craft alcohol producers may determine their own retail prices for all craft alcohol products whether or not the product is sold through SLGA.

Craft alcohol producers must warehouse and age all craft alcohol products at their production site.

Craft alcohol producers may establish warehousing and aging premises separate and apart from their manufacturing site.

 


Streamlined access to the marketplace & production levy

Saskatchewan craft alcohol producers now have the choice to arrange for direct distribution of their products to all retailers. Direct distributed products will be subject to the expanded production levy rate schedule(see below) for craft alcohol products. Improvements to the production levy structure include:

  • Overall production thresholds increased for all craft product categories
  • The addition of a separate category for refreshment beverages (ex. cider, coolers and similar pre-mixed ready-to-drink products)
  • Introduction of graduated production levy rates

Production Levy - Craft Refreshments, Spirits and Wine:

A production levy is remitted to SLGA for all products sold by Saskatchewan craft alcohol producer directly to consumers, retailers or commercial permittees and is lower than the markup that would apply if the products were distributed by SLGA.

There is now a new separate category for refreshment beverages and the 50,000L limit is being expanded to 200,000L on a graduated scale.

Production Levy - Craft Refreshments, Spirits and Wine

Production Threshold (L)

Refreshment (new)

Wine

Spirits

On the first 50,000

$0.31/L

$0.35

$0.70

From 50,001 to 100,000

$0.38/L

$0.43

$0.86

From 100,001 to 125,000

$0.85/L

$0.96/L

$1.92/L

From 125,001 to 150,000

$1.27/L

$1.92/L

$3.85/L

From 150,001 to 175,000

$1.69/L

$2.89/L

$5.77/L

From 175,001 to 200,000

$2.54/L

$3.85/L

$7.70/L

All production greater than 200,000

N/A

N/A

N/A

 

Production Levy - Beer:

A production levy is remitted to SLGA for all products sold by Saskatchewan craft breweries who sell directly to consumers, retailers or commercial permittees and is lower than the markup that would apply if the products were distributed by SLGA. The new production level structure adds three additional levels of production with incremental increases in the production levy.

 

Beer Production Levy (effective Nov. 1)

On the first 5,000 HL

$0.1715/L

 

 

From 5,001 to 10,000 HL

$0.21/L

 

 

From 10,001 to 15,000 HL

$0.25/L

 

 

From 15,001 to 20,000 HL

$.34/L

 

 

>20,000 HL

N/A

 

 

 


Growler Stations

Government expanded the types of businesses that can provide growler fills of craft beer products to include all retail store permittees, instead of just at brew pubs or microbreweries. Government also announced it would undertake pilot growler filling stations at two of SLGA’s largest liquor stores in the province. These growler filling stations are now operating at SLGA’s Quance Store in Regina and the Eighth Street Store in Saskatoon. Learn more about growlers.

 


For more information about changes for the craft alcohol industry view the following news releases: Changes for Cottage Wineries and Micro Distilleries and New Markup Structure for Growing Beer Industry.