When Jason Mercer started working at a mid-sized craft brewery in Kelowna seven years ago, the taproom was packed most weekends and the production team ran two shifts to keep up with demand. Now, as a shift supervisor, he's watched his crew shrink from eleven people to six, with no signs the bleeding will stop anytime soon.

"The tax break helps, don't get me wrong," Mercer said during his lunch break last week. "But it's not going to bring back the three people we laid off in February. The math just doesn't work that way."

His experience reflects a broader reality across British Columbia's brewing sector, where the federal government's April 2 announcement of a two-year extension to alcohol excise duty relief has been met with cautious appreciation rather than celebration. While industry representatives have called the move "a step in the right direction," workers and brewery owners across the province say the relief doesn't address the fundamental cost pressures squeezing the industry and threatening jobs.

The excise duty relief, first introduced as a temporary measure during the pandemic, caps the federal tax on beer at lower rates than would otherwise apply. For small brewers producing under 75,000 hectoliters annually, the relief can mean savings of several thousand dollars per year — meaningful for thin margins, but not transformative for businesses facing compound challenges.

Rising Costs Beyond Federal Taxes

According to data from the B.C. Craft Brewers Guild, the province's brewing industry has shed approximately 340 jobs since early 2024, with closures and consolidations accelerating through 2025 and into this year. The losses span the production floor, taproom staff, sales representatives, and administrative positions.

What the federal relief doesn't address, workers and owners emphasize, are the provincial markup structures, skyrocketing ingredient costs, and commercial rent increases that have compounded over the past two years. Barley and hops prices have risen by an estimated 23 percent since 2024, according to agricultural commodity reports, while energy costs for refrigeration and brewing operations have climbed steadily.

"The excise duty is one line item on a very long list of expenses," said Maria Chen, who manages operations at a Vancouver Island brewery that employs 14 people. "We're grateful for any relief, but our electricity bill has doubled, our lease is up for renewal at a 30 percent increase, and we're competing with cheap imports that don't face the same regulatory burden."

Chen's brewery has already reduced hours for three part-time employees and is considering whether to cut its seasonal release schedule — a move that would mean fewer hours for the packaging team.

The Provincial Piece of the Puzzle

Industry advocates have pointed out that B.C.'s liquor markup system, which adds provincial charges on top of federal duties, remains a significant barrier to competitiveness. While the federal government controls excise duties, provinces set their own markup rates and retail structures.

British Columbia's markup on craft beer sold through private retailers and on-site has been adjusted several times in recent years, but brewery representatives argue the structure still disadvantages local producers compared to imported products and larger domestic brands with different distribution advantages.

The B.C. Craft Brewers Guild released a statement following the federal announcement acknowledging the extension as positive but calling for coordinated provincial action. "Federal relief is helpful, but without corresponding provincial measures, B.C. breweries will continue to face an uphill battle," the statement read.

For workers like Mercer, the policy discussions feel distant from the daily reality of wondering whether their jobs will survive the next quarterly review. Several colleagues have already started looking for work outside the industry, he said, despite years of specialized experience in brewing operations.

A Temporary Reprieve, Not a Solution

The two-year timeline of the federal extension has created its own uncertainty. Brewery owners making decisions about equipment investments, hiring, or expansion now face a 2028 cliff when the relief could disappear — unless extended again or made permanent.

"How do you plan capital investments when you don't know if your tax structure will change in 24 months?" asked Tom Broadhurst, who owns a small brewery in the Interior that employs eight people. "We need predictability, not just temporary patches."

Broadhurst said his brewery will likely use the modest savings from the excise relief to offset other rising costs rather than to expand employment. "It keeps us alive, but it doesn't give us room to grow," he said.

The federal Department of Finance has not indicated whether the relief might eventually become permanent, though industry groups continue to lobby for that outcome. In the meantime, brewing industry employment across B.C. remains under pressure.

What Workers Are Watching

For the employees who remain in the sector, the federal announcement registers as good news in a difficult period, but not a turning point. Several workers interviewed said they appreciated that policymakers were paying attention to the industry's struggles, even if the response felt incomplete.

"I'm glad they extended it," said Aisha Patel, a quality control technician at a Fraser Valley brewery. "But I'm still worried about my job. We're all worried."

Patel has worked in craft brewing for five years and has watched several friends leave the industry for more stable employment in food manufacturing or logistics. The camaraderie and craft that drew her to brewing remain, but the economic pressures are hard to ignore.

The broader picture for B.C.'s craft brewing sector remains uncertain. While some breweries have found success pivoting to direct-to-consumer sales, contract brewing arrangements, or niche premium products, many small and mid-sized operations continue to struggle with the same cost-revenue squeeze that has driven closures and layoffs.

The federal excise duty relief offers some breathing room — a chance to slow the decline rather than reverse it. For workers like Mercer, Chen's team, and Patel, that's worth something. But as they clock in for shifts at breweries operating with skeleton crews and deferred maintenance, they know the reprieve is temporary and the challenges are structural.

"We'll take what we can get," Mercer said. "But we're not out of the woods yet. Not even close."