Saskatchewan, Alberta premiers discuss their beer beef

Saskatchewan Premier Brad Wall is meeting with Alberta Premier Rachel Notleytoday in Whitehorseto discuss Alberta's new beer markup and grant policy.

Wall has criticized the plan calling it against the spirit of inter-provincial trade and even threatenedretaliation.

"We'll have to look at Saskatchewan's interests and perhaps that could mean retaliating but that would be a last resort,"Wall said this week.

The new policy introduced by the Alberta government last week willcharge brewers regardless of size $1.25 per litre. It will alsooffergrants to Alberta's smaller craft breweries to help stimulate the industry.

Notley said if the premier had a problem with the policy, he shouldpick up the phone. Wall told reporters on Tuesday that his officials reached out to their Alberta counterparts and told them they would be speaking out.

"I will not be lectured about any effortsthat our government might take in the future in order to support oursmall brewers, our economic diversification, our workers and ourindustries," Notley said on Tuesday.

• Wall and Notley at odds over beer policy

Great Western CEO disappointed by Alberta policy

Saskatchewan's biggest brewery, Great Western Brewing inSaskatoon stands to lose money if the new beer markup goes ahead on August5.

"We were pretty shocked and disappointed with what they announced last week," said Great WesternCEO Michael Micovcin.

• Alberta beer hike unfair, Saskatoon's Great Western Brewing says

The Alberta market represents 60 per cent of Great Western's business.

As of August 5, the markup will go to a flat rate of $1.25 per litre, representing a 78-cent-a-litre increase to Great Western products.

It means a six-pack that currently sells for $11 in Alberta will soon cost about $12.66.For a case of 24, the increase would be around $6.65.

"I think the consumers of Alberta are going to be the big losers," Micovcin said. "I expect to see a lot of out-of-province beers pulling out of the province because they simply can't compete with the higher tax rate."

500 beers versus almost 5,000

Great Western currently pays $0.47 per litre, which will rise to$1.25 per litre. However, they pay a significantly higher cost in their home province of$1.94 per litre.

Alberta is the only province with an open border for liquor. It hasa full private liquor retail system, Saskatchewan has mix of public and private.

Jason Foster, an Edmonton-based beer bloggerstudied regulations in the two provinces.

"If you want to sell beer in theprovinceof Albertayou fill out a two-page form, pay $50.00 and you are in," Foster said.

"Saskatchewan has a gate-keeping process. You file your application, it goes to some civil servants in Regina who make an evaluation of whether they aregoing to let theproduct into the province or not," Foster said. "They often will turn down applications and they don't have to give any reasons why."

"Currently at the SLGAthere are 571 listings for beer. In Alberta, that number is almost 4,600," said Foster.

He predicts Saskatchewan and B.C. brewers will have to raise prices slightly but will not leave the market if they have a sizable share.

• Wildrose Party wades into Alberta vs. Saskatchewan beer battle