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Craft Brewer Questions Impact of Manitoba-Ontario Trade Deal on Beer Industry Expansion

by Kaia

A Winnipeg-based craft brewery owner is expressing skepticism over a newly signed trade agreement between Manitoba and Ontario, arguing that the deal falls short of supporting Canadian beer producers seeking broader access to retail shelves in other provinces.

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On May 14, Manitoba Premier Wab Kinew and Ontario Premier Doug Ford formalized a memorandum of understanding (MOU) aimed at removing trade barriers for goods, services, and workers between the two provinces. The agreement is part of a broader push to enhance interprovincial trade, particularly as Canada faces economic pressure from U.S. tariffs.

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“We’re willing to knock down these barriers,” Kinew stated during a press conference. “Manitoba, at the start of this process, was already one of the leaders with the fewest barriers, so we’re willing to continue that good work and want to extend a warm and hearty handshake to all the other premiers to join us.”

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Ontario has previously signed similar trade MOUs with Nova Scotia and New Brunswick.

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Despite the positive tone, Kevin Selch, owner of Little Brown Jug Brewing Company in Winnipeg, contends that the agreements offer limited benefits for beer producers aiming to scale their distribution across provincial borders.

“These MOUs are encouraging,” Selch said in an interview on CBC News Network with Rosemary Barton. “But every one of them talks about direct-to-consumer sales of alcohol, which doesn’t really help the many, many beer producers in Canada.”

According to Selch, direct-to-consumer models may work well for wineries shipping individual bottles, but not for breweries like his, which distribute beer by the case or pallet.

“It’s all about store shelves,” he emphasized.

Selch added that consumer expectations may be misaligned with the reality of the agreement, noting that some customers have contacted him under the impression that the deal would make Little Brown Jug beer more readily available outside Manitoba — a perception he says is premature.

To achieve what he describes as “true free trade in beer,” Selch is calling for greater access to Ontario’s liquor store system for Manitoba-based breweries.

“I hope that the provinces can really come together and make an ambitious deal,” he said.

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