If you’re a beer lover, you’ve probably noticed the shelves at your local liquor store becoming increasingly crowded. Big name brands now compete for shelf space with up-and-coming craft beers, including a growing number of local Alberta brews. Data from the Alberta Small Brewers Association shows that the number of breweries in the province has grown to over 120, a 410% increase in just 9 years!
Maybe you’re thinking of taking advantage of the craft beer boom and making the leap into entrepreneurship. Be aware that while the market may be growing, establishing a microbrewery isn’t simply a matter of scaling up the home brewery in your basement. There’s a lot involved in establishing a microbrewery, particularly when it comes to meeting the AGLC’s licensing requirements.
Set yourself up for success by taking care of the fine details—and the paperwork—long before you put that business plan into action. Here are a few things you need to know to get your craft brews into the hands of beer drinkers in Alberta.
Disclaimer: Regulations for breweries are subject to change. Always consult the latest resources from Alberta Gaming, Liquor and Cannabis to stay compliant.
Beer is a Highly Regulated Industry
Before you start brewing, make sure you comply with regulations concerning:
1. How your brewery is built
- It’s essential to ensure that your building complies with both federal and provincial construction standards, as well as municipal zoning regulations. Each local government in Alberta has specific zoning bylaws that dictate where breweries can operate, so it’s important to check with the city or municipality where you plan to open. Zoning restrictions can impact everything from the building’s location to the type of brewery you can establish, whether you’re planning a taproom, retail space, or distribution facility.
- In addition to meeting construction standards, you may also need to plan for specialized equipment such as ventilation systems for brewing and fermentation areas, proper drainage for wastewater, and storage for ingredients and finished products. Having a professional team, including architects and engineers, to guide you through these requirements will help ensure your brewery is built to code and ready to operate smoothly.
2. How your beer is brewed, bottled, and labeled
- To legally produce beer in Alberta, you need a Class E license from the Alberta Gaming, Liquor and Cannabis Commission (AGLC). This license permits the manufacturing, blending, and packaging of beverages containing spirits, wine, or beer.
- Your beer must be brewed on-site and comply with Canadian food and drug regulations regarding alcohol content, bottling, and labeling. The federal government sets specific guidelines for each type of beer and requires detailed ingredient listings, including allergens.
3. The price of your product
- The AGLC applies a markup to beer which is collected on behalf of the Government of Alberta. This markup supports various programs and initiatives benefiting Albertans. The markup is applied as a flat rate per liter, depending on the product type and alcohol content. You can find more information here.
4. Additional considerations
- Licensing: In addition to the Class E license, you may need other licenses depending on your business model, such as a Class A license for on-site sales or a Class D license for retail operations.
- Distribution: If you plan to sell your beer to other licensees or the public, you’ll need to understand the distribution channels and any associated regulations.
- Compliance: Regular inspections and adherence to all regulations are essential to maintain your licenses and operate legally.
Moving Forward: Turning Compliance Into Action
Now that you’ve got the lay of the land when it comes to compliance, it’s time to roll up your sleeves and start putting your plans into action. Understanding the regulations is just the first step—now you’ll need to take the necessary steps to transform your dream of owning a microbrewery into a reality. Here’s how to keep the momentum going:
1. Create a Solid Business Plan
A business plan is essential for setting clear goals, outlining your financial projections, and mapping out your strategy for growth. Your plan should cover everything from your target market and pricing strategy to distribution plans and marketing ideas. This plan will not only guide you but also serve as a critical tool for securing funding. Pro tip: Join Business Link’s Business Launch Program for free personalized help getting started.
2. Secure Funding and Financial Planning
Starting a microbrewery requires significant investment, from equipment and facility costs to licensing and marketing expenses. Whether you’re using personal savings, applying for loans, or seeking investors, you’ll need a clear financial strategy. Check out our video on Small Business Financing.
3. Find the Right Location
Once you understand the zoning and construction requirements, it’s time to find the perfect location for your microbrewery. Look for a site that aligns with your business model. Consider foot traffic, accessibility, and proximity to potential customers. Need help with market research? We’ve got you covered.
4. Build Your Brewery Team
Hiring the right team is crucial to your brewery’s success. You’ll need brewers with experience, customer-facing staff if you’re opening a taproom, and possibly a sales team to handle distribution. Building a strong team now will help set the foundation for your brewery’s growth.
5. Marketing and Building Your Brand
The craft beer scene is competitive, so creating a strong brand that resonates with your target audience is key. Develop your brewery’s story, logo, and messaging to stand out in a crowded market. Utilize social media, local events, and collaborations with other businesses to build buzz around your opening. Networking within Alberta’s craft beer community can also help elevate your brand. Learn more about marketing.
6. Start Brewing and Launching
Finally, it’s time to brew your first batch! Ensure that you have the right equipment, quality ingredients, and a brewing process in place. Once everything is set up, host an opening event or taproom launch to bring in customers and start selling your craft beers!
Helpful Resources
Business Link: Offers free, personalized business advice and programs to help entrepreneurs start and grow their microbrewery in Alberta.
Alberta Small Brewers Association: A valuable resource for Alberta’s craft beer community, offering insights, news, and networking opportunities for new and established breweries.
Canadian Craft Brewers Association: Provides industry news, advocacy, and resources for craft brewers across Canada, including valuable support for starting a microbrewery.
Alberta Gaming, Liquor and Cannabis Commission: The official site for licensing, regulations, and permits related to alcohol production and sales in Alberta.
City of Edmonton – Opening a Microbrewery Guide: A very helpful and comprehensive guide on how to start a microbrewery in Edmonton, including local zoning and regulatory requirements.
City of Calgary – Breweries and Restaurants Licenses: Provides detailed information on obtaining the necessary business licenses to open a brewery in Calgary.
Red Deer Brewers: Connects Red Deer’s brewing community, offering events, resources, and networking opportunities for aspiring brewers in the region.
Alberta Beer Festivals: A great resource for promoting your new microbrewery through participation in Alberta’s beer festivals, helping connect with craft beer enthusiasts and industry professionals.
Disclaimer: Regulations for breweries are subject to change. Always consult the latest resources from Alberta Gaming, Liquor and Cannabis to stay compliant.
