"Like most other Ontario craft brewers, business has become extremely challenging post-pandemic. We have come through a difficult few years, but the biggest threat to the future of craft breweries in Ontario is that we pay the highest craft beer tax rates in all of Canada," Murphy told blogTO.
"Our rates are eight times higher than Alberta breweries and have risen three times higher compared to the large foreign-owned breweries, and over the last decade, have increased at three times the rate of the beer taxes paid by the foreign-owned breweries. This has been a long-standing issue, but the recently announced retail expansion has made lower craft beer taxes critical in deciding the future of the industry," she added.
"The chance to get on more store shelves is a great opportunity, but the reality is that doing that means investing in more people, trucks and equipment."
Murphy also stressed that the province's promise of providing more choice for consumers is only achievable if the government lowers taxes for small breweries.
"The new convenience/grocery stores, coupled with the regulation to ensure 20 per cent of shelf space is dedicated to locally-owned craft breweries, has the potential to provide a lot more choice for consumers and help craft breweries like ours grow. But that won't happen unless the province takes steps to ensure that craft brewers have the chance to succeed in these new sales channels," she said.
"One month into the expansion, one thing is very clear — that unless government lowers craft beer taxes immediately — the new, expanded retail system will fail to actually deliver on the promise of real choice for beer drinkers."
Murphy said that while Left Field Brewery has not seen a direct impact on customers visiting their beer stores, the business still recognizes that the market is changing and is taking steps to prepare for the future.
"The struggle is faced by nearly all small, Ontario craft brewers right now and that's why we're working together in an attempt to advocate for a tax system that is fair for craft breweries — one that gives us the ability to grow our brewery to compete in the new marketplace," she told blogTO.
"Lower beer taxes will create thousands of jobs at local craft breweries across the province and will mean more choice for beer drinkers at convenience and grocery store shelves."