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The Alberta government will adjust its beer tax policy to benefit larger brewers, a move that comes months after Calgary-based Big Rock Brewery blamed the existing tax structure for its recent financial losses and layoffs.

As of Sept. 13, Alberta will extend the reduced beer markup that is currently charged to small craft brewers producing less than 50,000 hectolitres to include producers who brew up to 400,000 hectolitres. The reduced rate will be offered on a sliding scale — meaning depending on its size, a brewery could pay anywhere between 10 to 80 cents per litre. After a brewery exceeds the 400,000 hectolitre mark, a flat markup rate of $1.25 per litre will apply.

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The move was praised by Big Rock, which — with sales volumes of just over 200,000 hectolitres in 2018 — is too large to benefit from the current tax structure. In May, Big Rock blamed the existing rules, as well as the NDP government’s decision to eliminate a grant program for Alberta-based small brewers in light of ongoing trade and legal challenges, for some of its current financial struggles. The company posted a $1.7-million loss in the first quarter of 2019 (compared to a $387,000 loss during the same period in 2018) and said its resulting cost-cutting measures will include an undisclosed number of workforce reductions.