bc mapOver the past couple months I have noticed a fascinating trend on Alberta liquor store shelves. There has been a rather large increase in the number of B.C.-based breweries arriving in the province. I have counted about a dozen new arrivals since December alone. It is noticeable enough that I decided to focus my CBC Radio column on the subject a couple weeks back. You can now listen to the column here.

By my count there are now 30 B.C. breweries selling beer in Alberta, roughly one-third of breweries operating in that province. About 10 of those have been in Alberta a long time. Another sub-set of a half dozen or so started importing to Alberta in the last year or two. And then there is the dozen that have arrived in the past four or five months.

The veterans are some of the well-established, larger breweries in that province, not surprisingly. Among the newer group we find smaller, younger operations. One only opened its doors in November and is already shipping beer to Alberta!

A related observation is that some of those longstanding breweries – Central City, Phillips and Parallel 49 just to name three – have noticeably increased their presence in Alberta recently. They have increased the number of brands they import and they are taking up more shelf space/tap lines than before.

So I asked myself, why is that?

The answer is simple. The new mark-up rules implemented in last fall’s provincial budget. I won’t rehash the argument here as it is well worn (read here and here if you need background). Yet, it is clear that B.C. breweries have spotted a competitive advantage and moved quickly to fill it. Given that they get the same mark-up as Alberta breweries, they have a distinct price advantage over other imports. This is especially true for those newer and smaller breweries.

At the time I warned that including B.C. and Saskatchewan (as signatories to the New West Partnership) would water down the effects of the new policy. I appear to have been correct in that worry. It may be, at least at this early stage, that B.C., and not Alberta, is reaping the bulk of the benefit of the new policy.

Why not a Saskatchewan invasion? Well, my theory is that Saskie breweries are in a different phase of their development. There are a relatively small number of breweries in Saskatchewan (nine operational at the moment) serving what is a rapidly growing market for craft beer. I think their breweries are simply too busy meeting demand in their home province to make a big push westward. Whereas B.C. is a more mature market and capturing new markets is more necessary.

Is this a good or a bad development? As usual it depends on your perspective. I know the B.C. invasion is a serious thorn for some of the Alberta brewing community, and I can’t imagine the agents for other imports are pleased. For the consumer, it may all come down to whether you appreciate the beer that is arriving on our shelves.