The report reveals that outdated rules and complicated processes block Canadian producers from reaching new markets, including neighbouring provinces.
TORONTO — Canada’s small and craft alcohol producers face major roadblocks when trying to sell alcohol across provincial borders despite recent agreements meant to ease trade restrictions, according to a new report from the Canadian Federation of Independent Business (CFIB).
The Nov. 10 report says outdated rules and complicated processes block Canadian producers from reaching new markets, including neighbouring provinces. It says these rules drive up costs, limits consumer choice, and stifles the growth of small producers.
“When American liquor products were pulled from store shelves across Canada in response to U.S. tariffs, it…
The report reveals that outdated rules and complicated processes block Canadian producers from reaching new markets, including neighbouring provinces.
TORONTO — Canada’s small and craft alcohol producers face major roadblocks when trying to sell alcohol across provincial borders despite recent agreements meant to ease trade restrictions, according to a new report from the Canadian Federation of Independent Business (CFIB).
The Nov. 10 report says outdated rules and complicated processes block Canadian producers from reaching new markets, including neighbouring provinces. It says these rules drive up costs, limits consumer choice, and stifles the growth of small producers.
“When American liquor products were pulled from store shelves across Canada in response to U.S. tariffs, it opened space that could, and should, have been filled by Canadian producers,” said Keyli Loeppky, CFIB’s director of interprovincial affairs. “Instead, rigid interprovincial rules and excessive red tape continue to hinder small alcohol producers from expanding beyond their home provinces, leaving significant growth potential untapped.”
The report states Canada’s alcohol industry includes 1,500 breweries, wineries, and distilleries nationwide with regulatory, logistical, and pricing barriers when selling outside their home province.
“Duplicative lab testing requirements, inconsistent mark-up rates, and confusing rules all add to higher costs and fewer opportunities for Canadian entrepreneurs,” said SeoRhin Yoo, CFIB senior policy analyst for interprovincial affairs. “Allowing direct-to-consumer shipment of alcohol would be a significant step forward, but it’s only one part of the solution small brewers, distillers and vintners want to see.”
CFIB urges provinces to work together to fully implement the alcohol-related commitments already made under the Canadian Free Trade Agreement (CFTA) and recent Memoranda of Understanding (MOUs) on direct-to-consumer alcohol sales, including a strategic rollout plan for May 2026.
“It’s absurd that Canadians can’t easily purchase alcohol products made in their own country,” said Loeppky. “If we can’t fix barriers at home, how can we expect our businesses to meet goals to expand international trade? Provincial politicians need to put protectionism aside and work towards true free internal trade in Canada.”