Craft Breweries in B.C. Push for Urgent Tax Reform
The future of craft breweries in B.C. is under pressure, as owners warn survival depends on immediate government tax reform.
Industry Once Thriving, Now Struggling
When Kate Walker and her husband bought Nelson Brewing Company in 2016, the industry was full of optimism and growth. They modernized the 34-year-old brewery, won national awards, and became a workplace recognized for positive culture. Yet today, Walker admits she would never consider launching a new brewery under current conditions.
Over 20 Breweries Closed in 2025
In 2010, the province had just 54 breweries. By 2025, that number grew to 230 plus 30 brewpubs. Despite this boom, the B.C. Craft Brewers Guild reports more than 20 closures this year alone, blaming rising costs and unfair taxation.
Tax Rules Leave Small Brewers Behind
Breweries pay taxes based on annual beer production, with smaller producers paying per litre depending on their volume. However, foreign-owned giants producing over 350,000 hectolitres annually enjoy flat-rate taxation and receive millions in rebates. Smaller breweries, like Nelson Brewing Company, producing just 6,500 hectolitres, face the same tax brackets as much larger competitors.
Rising Costs Squeeze Local Producers
On top of taxes, ingredient, labour, and packaging costs have surged by 30 percent since 2020. Walker says breweries face “margin compression,” where rising expenses can’t easily be passed on to customers who already struggle with affordability.
Beer Sales Decline Across Province
Liquor mark-ups delivered over $1 billion in revenue in 2023-24. Yet, beer sales fell 5.3 percent between 2022 and 2024, while spirits and low-alcohol drinks rose in popularity. This shift adds more stress to small brewers already stretched thin.
Government Promises Policy Review
Agriculture and Food Minister Lana Popham acknowledged the challenges, saying tax reforms were under review but paused due to U.S. tariff disruptions. She committed to resuming discussions with the guild to “support the long-term viability of the sector.”
Brewers Say Reform Could Unlock Growth
Walker argues a revenue-neutral reform could cut Nelson Brewing Company’s tax burden by 70 percent, allowing reinvestment into hiring, growth, and community contributions. Without change, she warns, more closures will follow.
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