Craft breweries can now keep more money from sales, opening gates for expansion, production, jobs

Newfoundland and Labrador craft brewers will keepafew extra dollars in their pockets as promised by the provincial government in its 2020 budget.

For example, on a $4 can of beer brewerieswill now receive $3.35 on their first 100,000 litres produced.

If the can of beer is sold at a retailer, or a Newfoundland and Labrador Liquor Corporation store, breweries receive $3.15with 20 cents going to the retailer, andHST and a bottledeposit also taking acut.Six cents goes to the NLC in both scenarios.

Previous to Tuesday's announcement, breweries were receiving $2.90, with the same HST, deposit and retail cut, but the NLC was collecting 51 cents on each can sold.

On Tuesday, government officials including Siobhan Coady, the province's deputy premier and finance minister, made the announcement from Bannerman Brewing in St. John's.

Phil Maloney, owner of Bannerman Brewing Co., told CBC News the discounts are massive for his business, which is just over a year old.

"We were stricken with Snowmageddon in January, and a global pandemic which we're still in the middle of, so for our first year of business it was extremely challenging," Maloney said.

"It means we'll be able to sleep a little bit better at night, be able to hire more people, purchase more equipment and kind of keep up with the rest of the country."

The industry in Newfoundland and Labrador currently holds about 300 jobs. With the extra influx in cash, brewery owners say that number could quickly double.

Justin Fong, owner of Quidi Vidi Brewery and president of the Newfoundland and Labrador Craft Brewers Association, said it doesn't matter which stage a craft brewery is in right now whether it be new on the scene or have a long history in the province but that the new money will help everybody out of the gate.

For his business, he said, it could mean new fermenters and new jobs, whileit could mean a canning production line or delivery trucks for others.

"No matter what stage of business your craft brewery is in, it means a lot for reinvestment and job creation," Fong said.

Fong said Newfoundland and Labrador's tax structure for brewerieswas higher than most other provinces across the country ahead of Tuesday's announcement. He said this province also has the smallest market share at about three per cent, where the country's average is around seven or eight per cent.

"So our industrycurrently employs about 300 people right now, and with these breaks that bring us more in line with Canada, if we were to get toward the national average, you could see anywhere from 300 to 500 more jobs created," he said.

What's more, Fong said the extra money breweries will now retain will helpbolster the production for most, and also help them keep up with the demand. In turn, he said, more local brands and their product lines will be easier to findon the shelves at NLC stores.

"It's been a hard few years for everyone trying to keep up with the demand for our product," he said.

"Sometimes you'll go to the NLCand you'll see more craft breweries from other provinces instead of Newfoundland craft beers. So what this will do is get more production capacity in craft beers in Newfoundland and you'll see more on the shelf at NLCs and convenience stores."

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