Brewers on Prince Edward Island are commending the decision made by nine Canadian premiers to eliminate barriers to alcohol sales among provinces. However, they express doubt that this change will significantly impact their revenue.
During a gathering in P.E.I. with a focus on trade, the premiers reached an agreement on Tuesday to revise regulations allowing more Canadian brewers, wineries, and distillers to directly sell alcohol to consumers in different provinces. This move is seen as crucial amid threats from U.S. President Donald Trump to impose substantial tariffs on various Canadian exports.
Jeff Grandy, co-owner of Holy Whale Brewing Co., praised the provinces for this initiative, indicating potential benefits for medium to large breweries with the capacity to ship products across provinces. Nonetheless, he highlighted that smaller operations like Holy Whale face challenges due to high shipping costs.
Similarly, Robert vanWaarden, owner-operator of Red Island Cider in Charlottetown, acknowledged the positive aspect of removing interprovincial trade barriers. However, he emphasized that for small producers like them, equal access remains a challenge, citing issues with shipping, packaging, and marketing.
VanWaarden suggested that the provincial government could support small brewing and distilling businesses by allowing them to sell directly to bars and restaurants, bypassing intermediaries like the P.E.I. Liquor Commission. He emphasized the potential for improved profits and margins if such policies were revised.
Patrick Brannon, a senior researcher at the Atlantic Economic Council, also praised the agreement as a significant step in the right direction. He noted that while the benefits for P.E.I.’s small producers may be modest initially, there is potential for growth and increased trade with other provinces in the future. However, the impact on mitigating challenges posed by Trump’s tariff threats is expected to be minimal at this stage.