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Minister opens taps for NWT Brewing

The NWT Brewing Company will soon be able to sell its beer directly to licensed businesses.

Finance Minister Robert C. McLeod made the announcement last Wednesday in the legislative assembly to the applause of MLAs and a smiling Fletcher Stevens, owner of the brewery, who was watching things unfold from the public gallery.

“I have directed the department to draft regulations that allow for the sale of NWT Brewing products directly to licensees without having to go through NWT liquor warehouses and pay the handling fees,” said McLeod.

The new regulations are expected to take effect by the end of October.

Stevens described his reaction as “ecstatic” following question period.

“It's been a decision that's been looming over the top of our heads for quite a while,” he said.

The NWT Liquor Licensing Board, which regulates liquor sales in bars and restaurants as well as liquor manufacturers, had denied a number of local businesses' requests to purchase beer directly from the brewery.

Businesses were instead required to purchase the brewery's beer from the liquor commission at a higher cost.

“We'd thought that the existing liquor regulations had enough leeway to allow for the sale of beer by the NWT Brewing Company directly to licensees,” said McLeod.

“The board, as is their right as an independent quasi-judicial body, did not agree with that interpretation of the regulations and would not allow direct sales.”

It had previously been unclear whether the minister had any power over the issue, after a representative from his department told Yellowknifer late last month that “the board has the authority in this matter.”

“This really helps us, because the only way we can bring our cost per litre down is by brewing more,” said Stevens, explaining the changes will help increase his company's competitiveness. “And if you can't sell the beer, then why produce it?”

While Stevens first wants to sell locally and build loyalty for NWT Brewing Company products, he has his eye set on eventually moving into other markets.

“It seems the craft beer business is booming right now and our biggest fear was that it was going to grow so fast and we were being held kind of hostage,” said Stevens.

Now he is expecting things to get a lot busier around the brewery.

A number of local businesses have already expressed interest in carrying NWT Brewing Company beer and he may need to hire more staff in the future, he said.

Yellowknife North MLA Cory Vanthuyne, who is responsible for the constituency where the brewery is located, called the minister's announcement “great news.”

He commended the minister for his leadership in making a decision Vanthuyne said was not an easy one.

Ultimately it was about supporting small businesses and economic development, he said.

“He recognized that the previous decision by the board was stymieing that,” said Vanthuyne. “It's just time to modernize and change.”