CALGARY — On June 3, Restaurants Canada participated in the annual AGLC liquor stakeholders meeting where the organization highlighted member concerns regarding the additional ad valorem liquor markups announced in Alberta’s 2025 budget, which add an additional five per cent ad valorem markup on wines from $15/litre to $20/lire; 10 per cent of wines between $20/litre and $25/litre; and 15 per cent to wines costing more than $25/litre effective April 1.
Restaurants Canada initially discussed its concerns with Red Tape Reduction Minister Nally in March. At the time, the minister said that the additional markups on premium wines shouldn’t be significant enough to impact demand but understood Restaurants Canada’s position that partially adding a cost-based ad valorem markup on certain wines undermines Alberta’s flat tax markup system.
As members began to replenish their wine inventory after April 1st, they’re increasingly voicing concerns that they have been forced to absorb considerable increases in wine costs as most of the popular wines on their wine lists are impacted by the new ad valorem wine markups, adding thousands of dollars in additional wine costs that cannot be passed on to increasingly value conscious guests.
At the stakeholder meeting Restaurants Canada director Phoebe Fung (owner of Vin Room restaurants) shared that the new ad valorem wine markup is increasing her three restaurants’ wine costs by 22 per cent ($60K) per year. Overall, new markup contradicts Alberta’s level playing field flat tax markup structure, is unfair and hits the already struggling restaurants the hardest. It also negatively impacts almost all Canadian wine producers at a time when Canadians are supporting made in Canada liquor products as most Canadian produced wines are impacted by the cost increases while cheaper imported wines are not.
Restaurants Canada requested AGLC board support for its position in recommending that the Alberta Government rescind the ad valorem wine markup and replace it with an across-the-board flat tax markup increase on all liquor products in keeping with Alberta’s flat tax liquor markup system. Numerous other liquor association stakeholders, including those representing retailers, liquor agents, and Canadian wine growers, supported Restaurants Canada in opposing the markup, requesting that it be rescinded.
