Executive Summary

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: Why this Matters

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, like Alberta, which still requires liquor to be sold through the provincial system (e.g., AGLC and Connect Logistics). This process can increase costs, transportation, warehousing, and time while also impeding the ability to grow.

What have we worked on for our members....

Once learning about the issue, the Southeast Alberta Chamber of Commerce worked on recommendations we could submit to the Government. We consulted with the Alberta Small Brewers Association and our members, with the final result being adopted by our Board of Directors on June 18, 2025. We then wrote to Minister Nally to convey recent recommendations we developed to reform Alberta’s current beverage remittance model, as outlined in our policy titled “Beveridge Remittance Model Reform”.

We believe that transitioning to a post-sale remittance model would:

• Improve cash flow and operational flexibility;
• Encourage greater product diversity and innovation;
• Enhance competitiveness and reduce barriers for new businesses;
• Align Alberta’s practices with modern retail and distribution standards;
• Improve the Government’s revenue, improve efficiency, and reduce regulatory costs.

The goal of this reform would be to create a streamlined process for interprovincial trade, transportation and logistics and reduce unnecessary costs for manufacturers and retailers. 

Our request is 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.

We requested the Ministry pursue an alternate model for remittance, as outlined in the conclusion of the August 2024 AGLC ‘What We Heard’ document and our above recommendations. We also recommended consultation with industry stakeholders to explore a phased transition to a post-sale model, opening up the ability to ship directly to consumers, retailers and restaurants.