The owner of a Calgary cider house is pushing the province for change, saying Alberta is stiffing growth in the industry by charging exorbitant markups to distribute the product.
"if we distribute here in Calgary, we have to pay 33 cents a litre, or you as a consumer have to pay 33 cents a litre," said"If we use the distribution network called Connect Logistics up in Edmonton, which we have to, it goes up to $1.81 a litre. In comparison, beer – on both scales, self distributed or using Connect Logistics – is 10 cents a litre for a brewery of our size."
Scanland says for a 50 litre keg of beer, a small brewery will pay a $5 markup for distribution, while a cider house will pay more than $90 for the same sized keg.Scanland say it stifles both wholesale and retail sales for cider makers, and gives an unfair advantage to craft beers. "Hence, how many breweries do we have in the province? 150 or so something like that? As opposed to the five or six of cideries that we have.
"I find that when I go into a restaurant or a bar, sometimes they will look at our price of our cans – we charge $90 a flat locally, it's $113 a flat if we go through Connect , so they look at that, and they have to look at their margin, and then they have to charge like $12 a can for it." Scanland has started a petition calling on the province to harmonize the fees charged to cider makers and small breweries.
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