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Changes to craft brew discounts in Newfoundland and Labrador

A bartender pours a glass of beer inside of a new conceptual pub by Plzensky Prazdroj (Pilsner Urquell) brewery called Plzenka in Prague, Czech Republic, May 6, 2019.
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The provincial government has outlined changes it says could save the Newfoundland and Labrador craft brewing industry $1 million annually.

The plan was originally announced as part of the 2020 provincial budget. Finance Minister Siobhan Coady and Newfoundland and Labrador Liquor Corp. (NLC) CEO Bruce Keating provided the details on Tuesday.

It's about changes in how much commission is paid by craft breweries to the NLC for distribution.

Brewers producing up to 100,000 litres of beer will get a 95 per cent discount, with a scaling down of the discount depending on how much beer is brewed. Those breweries producing between 1.7 and 2.0 million litres of beer will get a 15 per cent discount.

“The craft brewing industry holds exciting potential for new entrepreneurs and consumers in urban and rural areas across our province," said Coady, in a release.

"The changes we are detailing today will keep another $1.1 million dollars in the industry each year, allowing them to invest in expanding their market presence or product offerings and creating new jobs.”

Only four breweries of the 19 active in the province produced more than 100,000 litres of product in 2019-20, so the increased discount affects the majority of breweries in the province, according to the release.

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