Warehouses receive liquor products directly
from manufacturers or suppliers. When a warehouse receives a
shipment, the suppliers (or their agents) set a price that reflects
the cost of the product. The supplier's price includes the actual
cost of the product (that is, the manufacturer’s cost)
plus the cost of insurance, marketing and promotion, transportation
to the warehouse, warehousing charges and a profit margin.
The AGLC calculates a wholesale price using the supplier's price
then adding federal customs and excise taxes and duties, a recycling
fee, a container deposit and the provincial mark-up. Mark-up
rates depend on product type and alcohol percentage. They are
assigned according to an approved rate schedule that is established
by policy and reviewed regularly.
Small brewer mark-up policy
Alberta's small brewer mark-up is applicable to beer produced in the New West Partnership region (Alberta, British Columbia, and Saskatchewan). Each eligible brewer receives an effective mark-up rate determined by its annual worldwide production and a combination of the applicable rates as outlined in the mark-up schedule.