Remarks by the Deputy Prime Minister on supporting Canadian businesses with alcohol excise duty relief

March 9, 2024 - Toronto, ON

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I would like to begin by acknowledging that we are gathered on the traditional territories of many nations, including the Mississaugas of the Credit, the Anishinaabeg, the Chippewa, the Haudenosaunee, and the Wendat Peoples.

I am so glad to be here today with Aaron Prothro (Owner, Mascot Brewery) and his team and with my wonderful colleagues from across the GTA.

Canada’s small craft brewers are the finest in the world. And as a Black-owned craft brewery, Mascot is such an important part of the cultural and social landscape of this amazing city.

One of the things Aaron talked to us about today is how he sees part of his mission is to build community—and you can see that happening here.

The success of your business, the quality of your amazing beers, and your commitment to empowering Black entrepreneurs is really an inspiration—and Aaron, I want to thank you for the important work you do. I recognize it’s hard. You’ve taken a big risk and you take big risks every day. And in addition to building a community for all of us, you provide great jobs for nearly 40 people.

As Finance Minister, I also appreciate that Canada’s small craft brewers, just like Mascot, play a very important role in Canada’s economy.

In fact, according to Statistics Canada, breweries employed nearly 23,000 Canadians in 2022. And the Conference Board of Canada has reported that the wider beer industry supports nearly 150,000 Canadian jobs. This is a big deal and it shows how important this industry is to our economy.

I also want to give a shoutout to Canadian farmers. As Aaron was talking us through the brewing process, he talked about buying malting barley, as one of the crucial ingredients in his beers. And I remember growing up, barley was one of the crops my dad grew. So, I want to say thank you to all the Canadian farmers who grew the malting barley which Aaron buys to make the great beers he serves here and sells across the GTA. 

In recent years we’ve seen the cost of the key ingredients for beer—like hops and malting barley—rising due to the impact of global inflation, and that’s been a real challenge for brewers in Canada. 

Our local brewers, the craft brewers, are particularly exposed to these costs, because they do not enjoy the economies of scale that large industrial brewers do. Our government recognizes that, and that’s why, last year, we capped the annual inflation adjustment for the excise duty on all alcohol products at two per cent per year for one year.

And today, I have an announcement. I am really glad to announce that our government will be extending this two per cent cap on the excise duty for an additional two years.

And I have more news, especially for Aaron and great entrepreneurial craft brewers like him across the country. I am really glad to announce that our government is supporting craft breweries by reducing their excise tax for two years. Specifically, we are reducing the excise duty rates on beer by 50 per cent, for the first 15,000 hectolitres of beer brewed in Canada. 

This will provide a typical craft brewery with nearly $87,000 in tax relief in 2024-25.

This is significant support, and I am glad to provide it.

Small businesses, and craft breweries like this one, are really the heart of Canada’s economy. So thank you again to everyone at Mascot Brewery for everything you do.

Our government is working hard every single day to deliver for Canadians from coast to coast to coast. And our support for small craft brewers is just one example of our economic plan in action—a plan that is working. And I think we can all raise a glass to that. Cheers!