Bottled Up: Small Business Barriers to Interprovincial Alcohol Trade

Despite recent agreements meant to ease trade restrictions, Canada’s small and craft alcohol producers continue to face major roadblocks when selling across provincial borders. Outdated rules and overly complicated processes restrict access to new markets, even when that market is their neighboring province.

This report highlights the fragmented system that drives up costs, limits consumer choice, and stifles growth for entrepreneurs, including:

• Excessive red tape and complex regulations;
• Poor transparency and communication from regulators;
• Wide variability in mark-up rates; and
• High shipping costs.

While recent Memoranda of Understanding (MOUs) on direct-to-consumer alcohol sales is a step forward, it is only a drop in the bucket of barriers to be eliminated. By fully implementing alcohol-related trade commitments and improving transparency, Canada can unlock growth for small businesses and deliver more choice for consumers.