New Rules for Cottage and Farm Wineries and Microbreweries
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The “Liquor Control Act Regulations Amendment” (EC2024-599) is a regulatory framework approved by the Lieutenant Governor in Council of Prince Edward Island on June 11, 2024. This amendment introduces several key changes aimed at modernizing the liquor industry and streamlining operational procedures for various license holders, including wineries, distilleries, and microbreweries.
One significant change occurs in Section 1, which revokes the previous definitions in the Liquor Control Act Regulations (EC704/75) and substitutes them with updated terminology. The term “licensed premises” now clearly refers to locations holding a valid liquor license, while “licensee” denotes the holder of such a license. Additionally, new definitions are introduced, such as “non-alcoholic operation,” allowing licensed premises to function without serving liquor and permitting the entry of individuals under 19.
In terms of wine production, Section 50.3 has been significantly amended. The new regulations remove references to “bottling,” since it falls under the broader definition of “production.” Furthermore, new subsections (10.1) and (10.2) permit holders of winery licenses to contract out up to 50% of their wine production to other licensed wineries or authorized entities in other jurisdictions. Specific production conditions are also established based on the type of winery license, requiring that at least 90% of products for Cottage and Small Farm Winery licenses be cultivated in the province.
Similar adjustments are made for distilleries in Section 50.5, where holders of distiller’s licenses are allowed to contract out up to 50% of their spirit production. This section also updates terminology, replacing “spirits produced and bottled at the distillery” with “spirits produced at or on behalf of the distillery,” thus providing greater operational flexibility.
The regulations for microbreweries, detailed in Section 50.7, mirror the adjustments made for wineries and distilleries, allowing microbrewery license holders to contract out up to 50% of their beer production. This section includes production limit conditions and permits the sale and display of liquor produced on behalf of another licensed producer.
Additionally, Section 69 has been revoked, as the powers and duties of inspectors are already adequately covered in the Liquor Control Act, streamlining the regulatory framework and reducing redundancy. The new regulations are scheduled to come into effect on June 22, 2024, giving stakeholders in the liquor industry sufficient time to adapt to the changes.
These amendments reflect a proactive approach to liquor regulation in Prince Edward Island, promoting flexibility for producers while ensuring adherence to local agricultural standards. The regulatory framework is designed to support the growth of the local liquor industry, improve economic activity, and accommodate the evolving landscape of alcohol production and distribution.
Prince Edward Island (EC2024-599) June 22, 2024