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Liquor Markup

Warehouses receive liquor products directly from manufacturers or suppliers. When a warehouse receives a shipment, the suppliers (or their agents) set a price that reflects the cost of the product. The supplier's price includes the actual cost of the product (that is, the manufacturer’s cost) plus the cost of insurance, marketing and promotion, transportation to the warehouse, warehousing charges and a profit margin.

The AGLC calculates a wholesale price using the supplier's price then adding federal customs and excise taxes and duties, a recycling fee, a container deposit and the provincial markup. Markup rates depend on product type and alcohol percentage. They are assigned according to an approved rate schedule that is established by policy and reviewed regularly.

Small Brewer Markup Policy

The Government of Alberta directed the AGLC to apply the existing standard markup rate of $1.25/L to all regular beers sold in Alberta. Regular beer is beer with less than or equal to 11.9 per cent alcohol content. This change is effective August 5, 2016.  

This markup change affects only the beers produced by small brewers in the New West Partnership regions of Alberta, B.C. and Saskatchewan. Markup of $1.25/L already applies to all other regular beer products. Therefore, one consistent markup rate is now applied to all regular beers selling in Alberta.

Standardizing the application of markup rates on all regular beer products supports the level playing field and open and competitive environment in Alberta’s marketplace.

The markup rates for all other liquor products remain unchanged.

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