Count the Olds College Brewery among those eligible for money under the Alberta Government's new grant program for small beer producers.
The Alberta Small Brewers Development Program, which began on Aug. 5, distributes grants to breweries that produce and sell less than 30 million litres (300,000 hectolitres) each year.
In a statement last week, Finance Minister Joe Ceci said these grants are meant to grow the province's craft beer industry. It's been reported that as much as $20 million could be handed out each year.
Olds College is home to one of the smallest breweries in the province. Not even micro-sized. Business manager Tony Stolz said it's actually classified as a "nano-brewery," expected to produce a maximum of 100,000 litres this year – the most they ever have, and ever will.
Stolz said the government program will benefit craft brewers in Alberta, helping them get their businesses established. While many will seek to expand, the brewery here in Olds has no plans to stray from its social enterprise business model.
"In fact, our focus isn't even to make beer. It's to train students. Our goal is to simply sell enough beer to help pay for some of the program costs so the students don't have outrageous tuition fees. It's simply designed to help pay for that expensive equipment," he said.
The government's grant program comes hand-in-hand with its earlier decision to raise the markup tax to $1.25 for each litre of beer sold in the province, no matter how big or small the producer is, or its location. Previously, Alberta had a graduated system that allowed small brewers to pay less per litre.
Terry Rock, executive director of the Alberta Small Brewers Association (ASBA), of which the Olds College Brewery is a member, welcomed the grant program, saying craft brewers will not be worse off, even though the markup tax has been increased.
According to Rock, while Alberta opens its borders to beer from other Canadian provinces, local brewers don't have the same access to their markets.
He calls the processes that liquor-control agencies use in provinces like British Columbia and Saskatchewan, "selective and protectionist."
"They're competing in Alberta with a protected market. We have a completely open market and we face the full brunt of their competition," he said.
"In that way, what we've been saying is, if we want to develop a brewing industry in our province, something has to be done."
The official Opposition has criticized the government's beer policy, calling it protectionist and contrary to the spirit of the New West Partnership, a trade agreement between British Columbia, Alberta and Saskatchewan.
Local Wildrose MLA Nathan Cooper acknowledges the challenges Alberta brewers face when trying to enter other markets, but voices concerns similar to those by finance critic Derek Fildebrandt, that the focus should be on reducing trade barriers.
And if the government were to enter negotiations to do so, this just adds one more, Cooper said.
"If we made the environment more competitive across other provinces, it would be much more successful than raising taxes on Albertans to then rebate to certain brewers," he said.
"We have the New West Partnership to break down those barriers and it's likely that this project will add a barrier to those negotiations. It certainly isn't going to speed up those negotiations."
Stolz names a few reasons why producing craft beer is more costly and labour-intensive.
For one, large industrial brewers aim to please a large market.
"It's good beer. I'm not going to knock the big guys. They're brewing a good product but it has to be very palatable to a very broad audience," he said.
"That allows them to use massive vats, huge automated systems with very few workers in them and they're able to produce at a cost point that's very low compared to craft brewery."
Each craft beer on the other hand, is a niche product and it's not for everybody, Stolz said.
To produce the rich flavours, craft brewers will use exotic ingredients like specific yeasts, as well as more ingredients in general. This too, adds to the cost.
"From a farming perspective, farmers love craft breweries. Like seriously, for every litre of beer, it's double the amount of malt that goes into that because we're trying for flavour," Stolz said.
In Alberta, he adds that the craft beer industry is still relatively new, compared to other provinces.
"B.C. had laws in effect many years before Alberta that allowed these small breweries to come into existence. Alberta's laws only changed about three years ago, that enabled small craft breweries to produce," he said.
"The same time Olds College's brewery got up and running, that's when the legislation was changed that enabled small craft brewers in Alberta to even exist."
"Our focus isn't even to make beer. It's to train students. Our goal is to simply sell enough beer to help pay for some of the program costs so the students don't have outrageous tuition fees."TONY STOLZ BUSINESS MANAGER OLDS COLLEGE BREWERY
