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The Food Issue
2017
grainswest.com11
BY LEE HART
Photo: MattPalmer
BOTTOMSUP
DISTILLERSCELEBRATE PROMISEDASSISTANCE FROM
PROVINCIALGOVERNMENT
ALBERTA’S CRAFT DISTILLERIES
are raising a glass to toast the provincial
government’s announcement of a new
grant program for small distillers that will
particularly benefit new entrants to the
business in Alberta.
The program was mentioned in the
March 2017 provincial budget and details
about the new grants have yet to be re-
vealed, but distillers are hopeful it might
resemble the $20-million Alberta Small
Brewers Development Program that was
introduced last year to assist the craft
brewing industry.
The brewers program rebates part of the
tax collected by the provincial government
on beer production back to small brewer-
ies. The grant amounts are determined on a
sliding scale based on production volumes,
with the best per-litre payout going to the
breweries that produce the least beer.
“We are delighted with the news and
look forward to working with the pro-
vincial government as they develop the
details,” said David Farran, president and
co-founder of the Alberta Craft Distillers
Association, and founder of Eau Claire
Distillery in Turner Valley. “Assistance like
this that will reduce the tax load on craft
distillers is critical, especially during the
startup years.”
Geoff Stewart, co-founder and president
of Rig Hand Craft Distillery in Nisku,
agreed that the new grant program would
be a huge help to distillers starting out in
the Alberta market.
If the program is structured in a similar
way to the grant program for brewers, it
will provide the largest grant amount in
the first year of operation and then decline
as production increases over each of the
next two years. “And that is exactly what
we need,” said Stewart. “We have high
startup costs and, since these operations
are smaller, we also have higher labour
costs—our facilities aren’t automated.
“As we start up, we can produce and
market vodka and gin products, for exam-
ple, but for whisky to be whisky it must age
at least three years. It’s not until the third
year that we can begin marketing some of
our higher-value products.”
There are currently around 10 fully
operational craft distilleries in Alberta, and
roughly another dozen are in the appli-
cation stage. Craft distillers are generally
low-volume producers, and each one
strives to produce unique, interesting and
high-quality spirits.
“There is plenty of room for this industry
to grow,” said Farran. “It is important that
we get involved in consumer education so
they understand our products and appreci-
ate what we can do in producing high-qual-
ity distillery products.”
Farran dismissed the criticisms coming
from neighbouring provincial jurisdictions
that any grants or rebates will give Alberta
distillers an unfair market advantage.
“Distillers in other provinces across Can-
ada have received plenty of assistance from
their own governments over the years,” said
Farran. “Alberta is just starting out with its
industry. We are really in a catch-up phase.”
Both Farran and Stewart said craft
distillers are important supporters of Al-
berta-grown agricultural products and the
broader Alberta economy. Virtually all raw
ingredients needed to make spirits—rang-
ing from crops like wheat, barley, rye and
corn, to fruits for flavouring—are sourced
from Alberta farms and processors. Each
operation pays municipal taxes, and em-
ploys workers from its local community.
“Each operation works closely with
farmers to source the products they need,”
said Farran. “Many are establishing rela-
tionships with producers so they have a
consistent, high-quality supply of products
and often can offer a price premium.”
Farran added that the Alberta Craft
Distillers Association is available to provide
any input the provincial government needs
to develop the final details of the grant
program before its launch.
David Farran, Eau Claire Distillery founder and Alberta Craft Distillers Association president.