Florence Hwang
Regina Leader-Post
Some Saskatchewan distilleries and breweries are toasting the news that Canadians can now order alcoholic beverages across provincial borders from most of the country’s licensed producers.
This is thanks to a new Direct-To-Consumer sales agreement through a Memorandum of Understanding (MOU) between the premiers of nine provinces: Alberta, British Columbia, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador.
The MOU was signed in response to the latest tariff threats against Canada by U.S. President Donald Trump.
John Cote — COO and co-founder of Black Fox Farm and Distillery based in the Saskatoon area — was excited to hear the news. His company ships products around the world, which Cote noted has been easier than shipping between provinces.
The announcement will be noticed for online orders, he predicted.
“Now we can actually partake in that economy, which is just so important for small companies like ours,” said Cote, whose business is a “bespoke” Type 1 distillery that produces less than 20,000 litres per year.
Liam McKercher, managing director of Crossmount Cider Company near Saskatoon, agrees with Cote but adds there is a down side.
“It would be nice … if there were more cost-effective shipping options,” said McKercher, who owns one of the largest cideries in the province.
Distilleries and breweries contacted by the Leader-Post say this MOU should have been done a long time ago.
Last Mountain Distillery co-founder Meredith Schmidt, a member of the Canadian Craft Distillers Alliance, says she’s been anticipating the MOU for more than a year after the original U.S. tariff threats emerged.
“They just hadn’t figured out how to do it … it’s a long time coming,” said Schmidt.
Minimal effect on breweries
Bushwakker Brewpub manager Grant Frew says his business, which includes off-sale products, won’t be directly impacted by the MOU.
“But I think it’s going to be more beneficial for the Saskatchewan distilleries, wineries and even the cideries,” he said.
Mark Heise, CEO and founder of Rebellion Brewing in Regina, also agrees the direct-to-consumer interprovincial agreement is a step in the right direction.
However, he doesn’t think those benefits will trickle down substantially to beer consumers at this point.
“The bulk of beer is not sold directly to consumers in other provinces. Most of the beer is sold within your own province,” said Heise, who noted beer has a shorter shelf life than spirits and wine, making it more challenging to ship in a timely manner.
Building economy despite tariffs
Some distilleries think the threat of American tariffs on Canadian imports may have united the country in terms of trade.
“It’s a shame that it’s had to come to this — that somebody else (Trump) is pushing us around in order to get these things to be worked with,” Cote said.
McKercher agreed.
“It might incentivize people to shop more Canadian,” he said, “and look at what’s in your backyard rather than going to companies south of the border.”
fHwang@postmedia.com
