Issue 

Provincial liquor remittance model reform is needed to streamline how small liquor manufacturers, particularly those classified as Class E, report and remit payments related to the sale of their products. 

Currently, the system lacks consistency with various carve-outs for interprovincial trade including the sale of wine between Alberta and British Columbia, Board-to-Board transfers and Interprovincial Direct-to-Consumer options. A reform of liquor sales could streamline and optimize efficiency and opportunity within the industry.

Background

In 2025, the federal government eliminated the requirement that alcohol moving between provinces must go through a provincial liquor authority. This provides provinces and territories the authority to allow or restrict shipping of alcohol across borders.

However, restrictions still remain in many provinces, with provinces like British Columbia and Manitoba more open to DTC shipments from other provinces. Whereas some, like Alberta, still require liquor to be sold through the provincial system (e.g., AGLC and Connect Logistics).

Under the existing system Class E small manufacturers (like craft breweries or distilleries) can sell directly to consumers or other licensees through their own licensed premises. These sales are processed through a consignment model managed by the Alberta Gaming, Liquor and Cannabis Commission (AGLC). After a sale, AGLC deducts:

• Provincial markup
• Container deposit
• Recycling fees
• Federal duties and taxes

Then, AGLC remits the remaining amount (the product cost) back to the manufacturer.

Proposed Reform:

Reforming the remittance model would have a goal of streamlining and modernizing this process. The model could work by allowing manufacturers:

• The ability to collect the full wholesale price directly from buyers.
• The responsibility of remitting only the markup, GST, and other applicable fees to AGLC.
• The ability to ship to the central warehouse or directly to the retailer or consumer

This change would reduce costs, particularly related to transportation and warehousing, improve the cash flow for small producers, reduce administrative delays and give manufacturers more control over their finances.^[1]

Recommendations

That the Government of Alberta work with AGLC and other provinces and territories to streamline interprovincial trade and modernize the remittance model through:

1.    Allowing Class E Manufacturers to collect the full wholesale price directly from buyers within Alberta and across Canada and report and remit only the markup, GST, and other applicable fees to AGLC.

2.    Providing the ability for Class E manufacturers to transport directly to a buyer or to a warehouse distribution centre in Alberta or other provinces using the remittance model for payment of any markup, taxes and applicable fees.

3.    Consulting with industry on the definition for small-scale producers and progressive tax rates that encourage scalable growth without being penalized once they reach a certain level of production.

4.    Implementing harmonized pricing and markup rates for Class E Manufacturers with easier options for invoicing, payment processing.

Date approved: June 18, 2025

Resources:

https://aglc.ca/sites/aglc.ca/files/2024-09/Liquor%20Remittance%20-%20What%20We%20Heard.pdf