Rule changes fermenting for brewers

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The number of licensed breweries in Canada jumped to 520 in 2014, up from 290 in 2009, with growth driven by small-scale brewers, according to Beer Canada, the industry trade organization. Of the total, 420 breweries produce no more than 500,000 litres each a year.

The growth has been aided, in part, by a relaxation in land-use and other rules by provincial and municipal governments.

Just this month, with an eye to boosting employment, tourism and the craft beer movement, Calgary approved land-use bylaw changes for breweries, wineries and distilleries to operate in mixed-used areas instead of being restricted to municipal-designated industrial zones.

In 2013, Alberta Gaming and Liquor Commission eliminated a requirement for minimum annual production capacity of 500,000 litres, a near insurmountable threshold for small operators, and added permissions for tasting rooms by breweries. Currently, the province has 27 breweries, with 15 more in the application process, according to AGLC. As well, according to the agency, four distilleries have started operations, for a total of seven in Alberta; five more have made applications.

Also in 2013, 2013, British Columbia modernized its liquor laws, permitting tasting lounges in breweries and other craft-friendly provisions, according to a report by Colliers International, with Vancouver and other municipalities updating their bylaws as well.

That same year, the Alcohol and Gaming Commission of Ontario embarked on its own modernization of regulations. The most recent changes, announced last December, broadened the range of products that Ontario alcohol manufacturers can sell in their on-site retail stores. The province has also moved to permit the sale of craft beer and wine in grocery stores.

Currently, AGCO has licensed 207 brewers, up from 140 in 2014-15, with 31 applications pending. As well, there are 33 licensed distilleries in Ontario, up from 30 in 2014-15, with seven applications pending, according to the agency.