The Canadian craft brewing industry is at a crossroads. With nearly 1,200 independent breweries across the country contributing $1.7 billion to our economy and employing nearly 30,000 people, we are a vital part of Canada’s economic and cultural fabric. Yet, rising costs, supply chain constraints, tariff threats, and tax burdens are creating significant challenges for our industry.
We believe that extending the 50% excise duty reduction on the first 15,000 hL of beer beyond March 31, 2026, and expanding relief to the first 500,000 hL, would help ensure the long-term sustainability of independent breweries. Aligning Canada with global best practices in excise taxation would provide meaningful relief and support economic growth within the craft beer sector.
Rising Costs & Economic Pressures
The challenges facing Canadian craft brewers are growing. Inflation has driven up the costs of essential materials: malt prices have risen by 20%, cardboard packaging by 16%, and the overall input costs for independent brewers are now three times higher than those of large, foreign-owned breweries. Adding to this burden, the impending 25% U.S. tariffs on Canadian aluminum and steel, set to take effect on March 12, 2025, will further increase production costs, putting additional strain on small brewers.
To help mitigate these challenges, CCBA has joined industry partners in requesting that U.S. aluminum can sheet, cans, and lids be excluded from Canadian countermeasures. Given that there are no active rolling mills in Canada producing aluminum can sheet, and domestic manufacturers only produce certain can sizes, any surtaxes would increase costs for Canadian brewers without viable domestic alternatives.
The Importance of Support – The Cost of Doing Nothing
Over the past year, more than 70 breweries closed their doors, resulting in $170 million in lost output, $83 million in reduced GDP, $18 million less in taxes collected, and 875 lost jobs. Without additional support, these numbers could continue to rise, impacting communities across Canada.
Strengthening Our Industry Together
At CCBA, we are committed to advocating for policies that support the long-term success of independent craft brewers. We also encourage brewers to support local suppliers whenever possible—whether it’s sourcing Canadian-grown barley and hops or using domestically manufactured equipment and packaging materials. A strong domestic supply chain is key to the resilience of our industry.
One of the best ways brewers can assure Canadian beer lovers that they are buying local is by subscribing to the Independent Craft Brewery Seal. This mark tells consumers that their beer is brewed by an independent Canadian craft brewer, keeping 100% of their money in Canada. We encourage all brewers to proudly display the Independent Craft Seal as a symbol of their commitment to local, independent craft beer and the communities they serve.
By working together, we can ensure a thriving future for Canadian craft beer. We look forward to continued discussions with policymakers and industry partners on how to best support independent craft brewers.
Cheers,
Christine Comeau,
Executive Director, CCBA
-#-
SOURCE: Canadian Craft Brewers Association (Press Release)
PHOTO CREDIT: Canadian Craft Brewers Association