'It shouldn't be so hard': Booze producers on board with P.E.I. government removing trade barriers

Alcohol producers on P.E.I. will meet with provincial officials this week about removing trade barriers on booze within Canada, a move many of them support. 

The federal government recently reached a deal with the majority of provinces to allow alcohol to flow more freely across the country, just as U.S. brands are bring pulled from liquor store shelves in response to U.S. President Donald Trump's trade war. 

All provinces except P.E.I. and Newfoundland and Labrador have agreed to remove the obstacles preventing their alcohol from being sold in other jurisdictions.

Robert van Waarden, the CEO of Red Island Cider in Charlottetown, said he hopes the province sees the "common sense" in dropping the barriers. 

"There's definitely room within liquor legislation across the country to ask questions about 'why does this exist?' and get the answer beyond… 'This is just the way we do it,'" van Waarden said. 

"I think there may be some sense in the way they're going about it and making sure that we can have some input on this before they decide on what we have to do." 

'100% on board'

Alcohol producers on the Island face several challenges selling things like beer, wine, cider and spirits directly to customers in most other provinces — not to mention this one. 

WATCH | Domestic trade barriers are coming down:

Removing booze barriers could open new markets for alcohol producers on P.E.I.

6 hours ago

Duration 1:50

Prince Edward Island is planning to remove interprovincial barriers when it comes to alcohol, just as other Canadian provinces are doing in the face of a U.S. trade dispute. But first, the P.E.I. government wants to touch base with Island liquor producers to discuss the impact. As CBC's Connor Lamont learns, many of those producers are on board with tearing down the barriers because it could help them reach new markets.

For example, van Waarden can only sell his products at the Red Island Cider location, at provincial liquor stores, or to bars and restaurants through the P.E.I. Liquor Control Commission. 

"It can be frustrating for us because, for example, if there's a manufacturer in Montague, they might have to send their product to Charlottetown to get their product back to Montague," he said. 

"It's very difficult for me to know who's buying Red Island Cider in their restaurant without going into that restaurant…. We're not getting that data from the liquor commission." 

Add to that, laws in most other provinces prevent the company from making the P.E.I. cider available for purchase and shipping through a website. 

It's those direct-to-consumer barriers that most of the other provinces have pledged to drop.

'Fully committed'

Although P.E.I. has not acted yet, the province's finance minister has said the government is committed to following suit at some point. 

"At the most recent federal-provincial committee on internal trade meeting, it was stated that P.E.I. was committed to eliminating interprovincial trade barriers for the sale of alcohol. We had requested some time to have conversations with stakeholders," Jill Burridge said in a statement last week. 

"But, let me be clear — I am fully committed to working with Minister [Darlene] Compton to [remove] these barriers just like other provinces and territories are." 

Jared Murphy, co-owner and CEO of Lone Oak Brewing Co., said he's "100 per cent on board" with removing trade barriers on alcohol because it helps businesses reinvest in their companies and, in turn, the provincial economy. 

"Any avenue for a local producer to have an option to sell your product at a higher margin is advantageous for us," Murphy said.

"If we're able to use that particular sales model to create an additional revenue stream and open ourselves up to new people across the country, I would only think that that's a positive thing."

Seeking shelf space

Another issue facing P.E.I. companies is getting their products listed with liquor stores in other provinces. 

Scott Beamish, operations manager at Deep Roots Distillery in Milton, said with U.S. booze coming off shelves across the country, liquor commissions could open some of that space to producers from other parts of Canada. 

"Whenever we battle these companies for shelf space [at] our own liquor stores, we have to battle with higher costs and a tougher time to really make it a viable product for us," he said. 

"We really want to make sure that we can get some of the Canadian-made products on shelves all across Canada. It shouldn't be so hard that we're taking something like our vodka or a liqueur… and have to battle [for] the Canadian shelf space with non-Canadian producers."