The Ontario government has announced a significant policy change that will bring tax parity to the province’s craft cider industry, aligning it with the existing tax framework for craft beer producers.
Included in the provincial budget unveiled on May 15, the new measure will take effect on August 1. Under the change, the markup rate for craft cider sold through the Liquor Control Board of Ontario (LCBO) will be reduced from 60.6 per cent to 32 per cent. This adjustment will apply across all retail channels and to sales to licensed establishments.
The decision follows years of advocacy from cider producers who have long argued that the previous tax structure placed them at an unfair disadvantage compared to craft brewers. The announcement came just one day after The Blue Mountains council passed a resolution—introduced by Councillor Gail Ardiel—calling for tax equity for cider makers.
Industry leaders quickly welcomed the government’s move. Jennifer Dean, chair of the Ontario Craft Cider Association, praised the decision in a statement, calling it a pivotal moment for the sector.
“We applaud and give our sincere appreciation to the Ontario government for recognizing that the Ontario craft cider industry growth was being inhibited by a perplexing tax structure,” Dean said. “Today the Ontario government rectified the tax disparity and now Ontario Craft Cider will be taxed as a 100 per cent Ontario product.”
Local cider producers also hailed the change as transformative. Ian Smith, co-owner of the Spy Cider House and Distillery in The Blue Mountains, emphasized the long-standing effort behind the achievement.
“There have been a lot of people advocating for this for years,” Smith said. “It’s incredibly great. It will help us a ton. It’s nice seeing things moving in the right direction after years of lobbying.”
Councillor Ardiel expressed satisfaction that the issue was addressed just 24 hours after her resolution was passed. She highlighted the broader economic implications for the province.
“I believe this is and will be a serious economic driver that will only continue to blossom and grow to support the Ontario craft cider businesses,” Ardiel stated. “This will put more money in the pockets of these producers who create cider made entirely from Ontario apples.”
The policy shift also drew praise from Grey Highlands Councillor Joel Loughead, a former cider maker, who plans to seek support for Ardiel’s resolution from his own council. Loughead noted the potential for the change to stimulate rural economies.
“This is great, long overdue news for Ontario cidermakers, orchardists, and cider enjoyers everywhere,” Loughead said. “Allowing craft cider to finally be profitable will have a noticeable, positive impact on agri-tourism, culture, and local employment in Bruce and Grey counties.”
Simcoe–Grey MPP Brian Saunderson credited several provincial officials, including former Bruce–Grey–Owen Sound MPP Rick Byers and cabinet ministers Lisa Thompson and Rob Flack, for their roles in advancing the reform.
“There have been a lot of wheels turning on that file,” Saunderson said. “It’s quite a large change. It’s going to affect micro-breweries and cideries, as well as our vineyards. It’s a large change that is going to be very helpful.”
Saunderson confirmed that in the lead-up to the budget, his office reached out to cider industry professionals and received strong support for the proposal.
“Everyone is very excited and wants to learn more about the details,” he added.
The harmonization of cider and beer taxes marks a notable policy milestone in Ontario’s support for its craft beverage sector and is expected to drive growth across local economies and rural communities.
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