Important Update: Alberta's Wine Tax Increase Effective April 1, 2025

Starting April 1, 2025, Alberta will implement a new tiered markup system for wines, introducing additional fees based on the wine’s value. This adjustment means that both retailers and consumers will see higher costs on wine due to the revised provincial markup structure.

Current Markup Structure:

At present, the Alberta Gaming, Liquor and Cannabis Commission (AGLC) applies a flat markup of $4.11 per litre (approximately $3.08 per 750 ml bottle) to all wines, regardless of their value. This straightforward system has contributed to relatively low wine prices in Alberta compared to other Canadian provinces.

New Tiered Markup System:

The upcoming system introduces additional percentage-based fees for wines exceeding a “reference invoice price” of $15 per litre (approximately $11.25 per 750 ml bottle). These fees are structured as follows:

• 5% Markup: Applied to the portion of the wine’s value between $15 and $20 per litre.

• 10% Markup: Applied to the portion between $20 and $25 per litre.

• 15% Markup: Applied to any value exceeding $25 per litre.

Impact on Consumer Prices:

The introduction of these additional fees will lead to increased consumer prices, particularly for higher-value wines. For example:

• A wine with a supplier cost of $11.25 per 750 ml bottle will see no additional markup, maintaining an approximate retail price of $19.78.

• A wine with a supplier cost of $30 per 750 ml bottle will incur an additional markup of $2.26, resulting in an approximate retail price increase to $48.77, reflecting a price increase of $3.12.

• A wine with a supplier cost of $75 per 750 ml bottle will face an additional markup of $9.01, leading to an approximate retail price of $120.18, marking a significant increase of $12.43.

Wines priced above approximately $30 will see the most significant price increases under the new markup structure. Alberta's introduction of a tiered tax of up to 15% on premium wines will directly impact pricing at liquor stores, restaurants, and other licensed establishments. As a result, consumers can expect higher costs at checkout. If you frequently purchase wine in Alberta, staying informed about these changes and planning ahead will be essential.

This new markup system will take effect on April 1, 2025.

For more detailed information, please refer to the official announcement by the Alberta Gaming, Liquor and Cannabis Commission. [AGLC]