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The rise of craft distilling in British Columbia
In recent years, British Columbia has witnessed a remarkable surge in the craft distilling industry. From a mere four distilleries two decades ago, the province now boasts nearly forty. This growth reflects a burgeoning interest in locally produced spirits, driven by a desire for authenticity and quality.
As U.S. products are pulled from the shelves of BC Liquor Stores due to ongoing trade tensions, the spotlight is now on local distillers to fill the void. Tyler Dyck, president of the Craft Distillers Guild of B.C., emphasizes the urgency of supporting local products to ensure that shelves are stocked with B.C.
spirits rather than remaining empty.
Challenges faced by B.C. craft distillers
Despite the impressive growth, B.C. craft distillers face significant hurdles, primarily due to stringent government regulations. To be certified as a “craft” distillery, producers must use 100% B.C.
inputs, ferment and distill on-site, and limit their annual production to 100,000 liters. However, the financial landscape is challenging. Dyck points out that the markup imposed by BC Liquor Stores, which takes a staggering 70% of the retail price, makes it nearly impossible for many distillers to profit from sales in government stores.
This contrasts sharply with the B.C. wine industry, which benefits from a more favorable 17% markup for Vintners Quality Alliance (VQA) certified products.
A call for change and local support
Dyck advocates for a reevaluation of the current system, suggesting that the government should adopt a model similar to that of the wine industry, allowing distillers to retain a larger share of their sales revenue.
He argues that this change could significantly boost the local economy and create jobs. The demand for Canadian products is on the rise, especially in light of U.S. trade issues, and consumers are eager to support local businesses. Dyck believes that if B.C.
craft distillers can gain a foothold in government liquor stores, they will not only survive but thrive in this competitive market.
The future of B.C. spirits
As the craft distilling industry navigates these challenges, the potential for growth remains immense. With a growing consumer base that prioritizes local and sustainable products, B.C. distillers are well-positioned to capitalize on this trend. However, it is crucial for the provincial government to listen to the concerns of these producers and implement changes that will enable them to succeed. By fostering a supportive environment for local distillers, British Columbia can ensure that its liquor shelves are filled with homegrown products, contributing to a vibrant local economy.
