Saskatchewan’s craft industry is excited by recent SLGA policy changes

Tim Karchut has a simple mission.

“We want to be Kentucky in the north,” said the distillery and co-owner of the Hudson Bay Distillery.

“We got grain, we got space, we got people, we got human resources. Why don’t we create a world-class spirit?”

For Karchut, it begins with what he calls some of the best malted barley in North America — cultivated in the Biggar region of Saskatchewan.

“The area has been famous for malted barley since the late 1960s, and malted barley is one of our mainstays,” says Karchut.

It is also important for Sue Echlin to use locally sourced materials.

Living Sky Winery partners said starting with the whole fruit is an important part of their business.

“Growing fruit in this state isn’t the smartest thing you can do, so there’s no doubt that you’ll have to buy it from another producer,” Echlin said.

“Whether it’s a grape or an apple, it doesn’t really matter, you have to be 100 percent fruit.”

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Both are excited about recent policy changes made by the Saskatchewan Liquor Games Authority (SLGA) and are now classified as Type 1 producers.

Type 1 manufacturers use 100% raw inputs, while Type 2 manufacturers use less than 100% under the new SLGA classification, which came into effect on 1 December 2020.

“If you use really raw inputs like grains and raw fruits such as apples and strawberries, bring them to the field and then grind them or make them in some process, it’s a type 1 producer. Is considered. ” Greg Gettle, Vice President of Liquor Wholesale and Distribution at SLGA.

“A type 2 producer is someone who brings apple or fruit juice to the facility. Someone has already crushed the product and now you are drinking the juice. Ferment and process it. to hold.”

Regarding spirits, Gettle said that Type 2 producers would buy neutral grain spirits and process them instead of crushing and fermenting the grains in the field.

The change was made after consultation with the industry, Mr. Gettle said.

“They have grown tremendously over the last five years and felt that they needed more attention from SLGA to grow,” he said.

The change is benefiting the sector, according to Gettle.

“By splitting it up and recognizing the differences between Type 1 and Type 2, we can continue to recognize both of these producers as craft producers,” he explained.

“But as a Type 1 producer, we wanted to realize that they would enjoy the greatest financial benefit because they were making additional investments in their business because they needed additional processing.”

Craft industry moving forward

Sue Echlin said this is a big step forward for the industry.

“In many states, there have been very strict regulations on what local wines are and what bottles of wine are, so the wineries have certainly fallen behind,” she said. Said.

“And I think it was also a driving force for us to recognize the difference in spirit as we strive to produce the true craft wine, Tier 1 wine.”

Cavrin Karchut, CEO and co-owner of Hudson Bay Distillery, said it was a special opportunity for the sector.

“The biggest attribute is the difference between Type 1 and Type 2. Because the overcrowding in the craft market is actually commercial grade, but everyone procures alcohol and It was to repack and sell in the craft area. The product, “Kablin said.

Tim Karchut made this distinction by calling Saskatchewan the second largest jurisdiction in Canada after British Columbia as a major step in SLGA.

“(BC) is very hardcore and is the same as their wines, breweries and all manufacturers. You can’t make it from scratch or call yourself a craft.”

Jeff Allport said it was also a matter of pride.

The owner of Nokomis Craft Ales says, “We have always made beer from grain mashed potatoes the current way and fermented everything in the field because it produces better products.” ..

“In my opinion, liquid repackaging is essentially not a craft production, nor a craft producer.”

Local produce

Saskatchewan produces the best, if not the best, agricultural products in the world, so it makes sense to use locally sourced materials in its products.

In addition to malted barley and wheat, Karchut said he uses other produce grown in Saskatchewan to produce spirits.

“We are Canada’s first distillery to build a spirit with pulsed crops. It took more than a year to decipher the code and start science. But now the spirit is made from 100% legume crops There is a line, “says Karchut.

“The bean spirit is 100% gluten-free and 100% grain allergen-free, so it’s pretty amazing.”

It’s also a matter of knowing where your material comes from, Echlin said.

“If you’re buying juice from somewhere, you don’t know how it was made. I don’t know how it was harvested, but you’re buying fruit from a local producer. If you can find it, “she said.

“On the wine side, I think we also recognize that we are returning money to the Saskatchewan economy to grow fruits and buy fruits from local producers.”

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Allport said there are also incentives to change the levy.

“This allows us to make more investments in the brewery, our staff, and the interests of our staff, which allows us to grow and thus hire more people,” he said. ..

He also said that production could be increased without losing the craft designation.

“It’s a kind of step-by-step levy structure, and as you grow, the production levy you pay grows with it, but the previous structure grows your business as you approach that limit. It’s almost an incentive to prevent it from happening, “Allport said.

Attitude change

Echlin said SLGA’s attitude towards the craft industry has changed over the years.

“There has been a big change in SLGA since we first started. It was, frankly, a frustration exercise, but they have come a long way in supporting craft.” She said.

“I feel that SLGA has a lot of support right now. The particular craft department they set up helps us all know that we will be more successful in any sector of the industry. Did some great work for. “

Gettle said the feedback from the producers is positive.

“This is a great program. I think it’s a really positive change for the industry. They’ve done an incredible job of getting consumer attention over the last few years,” he said.

“We are confident that the changes we made last month will continue to do so. Small starters, medium and large craft producers, everyone has something here. , Really help them grow in the future. “

This is the goal of Karchut and all craft makers to create products that they can grow and be proud of.

“The fundamental goal of our entire distillery is to barrel the whiskey that I will die of before everyone drinks it,” he said.

Echlin compared it to the relationship.

“When we make a batch of wine, it’s a commitment, a long-term commitment,” she said.

“It’s like a relationship that you can’t completely break up.”