For Immediate Release
Calgary, Alberta — Big Rock Brewery Inc. (TSX: BR) (“Big Rock” or the “Corporation“) is pleased to announce that the Government of Alberta and the Alberta Gaming, Liquor and Cannabis agency (the “AGLC”) have amended the mark-up policy for Alberta beer sales, which is anticipated to significantly reduce the Corporation’s overall beer tax and provide the Corporation with a pathway for sustainable growth moving forward.
The new Alberta beer mark-up policy extends the reduced beer mark-up to producers, such as Big Rock, with worldwide annual production of less than 400,000 hectolitres by implementing a graduated scale of up to $0.80/litre. Based on this revised framework, the Corporation anticipates its mark-up on Alberta beer sales will be reduced to $0.64/litre from $1.25/litre as of September 13th.
The Corporation believes the new framework supports the sustainable growth of Alberta businesses and the Alberta economy and provides Big Rock’s management the ability to evaluate growth within a predictable regulatory environment during the current Government of Alberta’s term in office.
About Big Rock Brewery Inc.
In 1985, Ed McNally founded Big Rock to contest the time’s beer trends. Three bold, European-inspired offerings – Bitter, Porter and Traditional Ale – forged an industry at a time heavy on easy drinking lagers and light on flavour. Today, our extensive portfolio of signature beers, ongoing seasonal offerings, five ciders (Rock Creek Cider® series), custom-crafted private label products and other premium licensed alcoholic beverages keeps us at the forefront of the craft beer revolution and still proudly contesting the beer and alcoholic beverage trends of today. With brewing operations in Calgary, Alberta, Vancouver, British Columbia, and Toronto, Ontario and sales in five Canadian provinces and two territories, Big Rock has been a significant supporter of local Canadian breweries and communities for over 34 years. Big Rock trades on the TSX under the symbol “BR”. For more information on Big Rock visit www.bigrockbeer.com
Certain statements contained in this news release constitute forward-looking statements. These statements relate to future events or the Corporation’s future performance. All statements, other than statements of historical fact, may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “plans”, “expects”, “intends”, “anticipates” and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Corporation believes that the expectations reflected in those forward-looking statements are reasonable, including, but not limited to, that the Corporation will submit an application to the AGLC for a reduced mark-up on or before September 4, 2019, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release not be unduly relied upon by investors as actual results may vary materially from such forward-looking statements. These statements speak only as of the date of this news release and are expressly qualified, in their entirety, by this cautionary statement.
In particular, this news release contains forward-looking statements pertaining to: (i) the impact of the mark-up change on Big Rock, including, but not limited to, on its beer tax and business plans; and (ii) the timing of, and anticipated reduction in, the mark-up payable by the Corporation.
Some of the risks which could affect future results and could cause results to differ materially from those expressed in the forward-looking information and statements contained herein include, but are not limited to the anticipated change in the tax environment for beer and cider in Alberta.
This press release contains future-oriented financial information and financial outlook information (collectively, “FOFI“) about the impact of the new Alberta beer mark-up policy on the amount of taxes that the Corporation pays, including, but not limited to, on a per litre basis, which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth above. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on FOFI. Big Rock has included the FOFI in order to provide readers with a more complete perspective on Big Rock’s future operations and such information may not be appropriate for other purposes.
Readers are cautioned that the foregoing list of assumptions and risk factors is not exhaustive. The forward-looking information and statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking information and statements included in this news release are made as of the date hereof and the Corporation does not undertake any obligation to publicly update such forward-looking information and statements to reflect new information, subsequent events or otherwise unless so required by applicable securities laws.
For further information, please contact:
Don Sewell, Chief Financial Officer:
Phone: (403) 720-3239
Fax: (403) 720-3641