How to Start a Brewery in Prince Edward Island

The short answer

Get the federal excise licence first, then apply to the Prince Edward Island Liquor Control Commission (PEILCC) for a micro-brewery or brew-pub licence. A brewery in Prince Edward Island needs both: a brewer's licence from the Canada Revenue Agency under the Excise Act, and a manufacturer's licence from the PEILCC. The PEILCC runs the process off a written checklist in its Manufacturer's Policy Manual, and the whole checklist must be in final form at least 21 days before the application is even considered. This guide covers only the Prince Edward Island mechanics. The national steps that apply everywhere are in our How to Start a Brewery Business in Canada guide. With this guide, every province now has a brewery guide on this site. Do not use another province's liquor regulator or fees for Prince Edward Island — the regulator, the licence names, and the supply route are different here.

Step 1: Pick the licence — micro-brewery or brew-pub

The PEILCC Manufacturer's Policy Manual defines the two brewery licences. A micro-brewery is a manufacturer of beer where the primary business function is to sell packaged product to the PEILCC and thence to the general public through liquor stores or for export, and which manufactures less than 15,000 hectolitres of beer per year. A brew-pub is a small capacity manufacturing facility of less than 2,000 hectolitres of beer per year where the primary business function is the sale and service of liquor for consumption in its adjacent, totally segregated licensed premises and in up to one additional licensed premises that is owned and operated by the brew-pub licensee.

Pick the licence from the business plan, not from the name: a brewery built to sell packaged beer through liquor stores is a micro-brewery; a brewery built around serving its own beer on site is a brew-pub. Separate licences are required for the manufacture of beer, spirits, and wine. The PEILCC may issue a licence to a manufacturing operation provided it has a demonstrated technical capability of consistently producing quality beverage alcohol on a commercial basis.

Step 2: Get the federal excise licence first

The preplanning stage must include contacting the federal government — Excise Canada — for approval of the federal licence. The manual lists Canada Revenue Agency proof of approval for an excise licence as item 8 on the licensing checklist, and the CRA can be reached at 1-888-327-7999. The CRA issues the excise licence and will assist with production questions.

A brewer's licence is required to manufacture beer, malt liquor, wort, or yeast, and a licence is required for each physical business location where any manufacturing process takes place, any manufacturing apparatus or equipment suitable for producing beer is kept or used, or any products of brewing or fermentation are kept or stored. That is the rule in the Canada Revenue Agency's Excise Duty Circular ED200-1. For each location, complete Form L1, Application for a Brewer's Licence, Form E110, Description of Premises to Accompany Application for Licence, and Form E111, Description of Vessels and Utensils, and submit them with a floor plan, a business overview, an operating plan, a sales plan, a financial plan, and the other supporting documents the circular lists to your regional excise office. The applicant must provide financial security in the form of a surety bond before a licence is issued. If the application is approved, the CRA will issue a brewer's licence and charge a licence fee of $51.10. A brewer's licence is valid for one year from April 1 to March 31 and is automatically renewed, with an annual licence fee of $51.10 due each year by March 31.

Step 3: Work through the PEILCC licensing checklist

The applicant must supply all information required by the licensing checklist in its final form at least 21 days in advance before any application is considered for licensing. The checklist, from the Manufacturer's Policy Manual, is:

1. Application form accompanied by a $300 non-refundable application fee.
2. A business plan covering the structure of the company or corporation, a floor plan with details showing the fermentation, brewing, or distilling area, storage room, and if applicable proposed retail and other areas of use, a description of the products and alcoholic strength, the method of distribution, a marketing plan, the size and type of containers, the production capacity of the equipment and anticipated volumes, quality control and a description of metering devices on the equipment, the number of people to be employed, and capital costs.
3. Areas to be licensed form with measurements.
4. Personal History Reports, Form 16, for the applicant, all executives of the corporation, and the person responsible for production and quality control.
5. Community approval — zoning and use.
6. Provincial environment approval — call 902-368-5044.
7. Canada Revenue Agency proof of approval for an excise licence, 1-888-327-7999.
8. Sample of all labels with UPC numbers.
9. Proof of ownership or legal entitlement to occupy the premises, in the form of a lease or deed.
10. A complete copy of the letters patent, constitution, and bylaws, if the applicant is a corporation, club, or association, plus a resolution authorizing the applicant to apply, a list of directors and officers or partners, and a certificate of good standing for the corporation.
11. An indemnity form.
12. Proof of compliance with the Fire Prevention Act — Provincial Fire Marshal's Office, 902-368-4869.
13. Proof of compliance with the Public Health Act — Environmental Health, 902-368-4970.
14. Workers Compensation Board confirmation, 902-368-5680.
15. Proof of a valid Responsible Beverage Service Certificate.

Before making an application, call the PEILCC main office at 902-368-5710 to review the process and make sure you understand the type of licensing and approvals that will be required. That is the advice on the PEILCC's Apply for a Liquor License page, which also says the applicant and all staff must hold a valid Responsible Beverage Server Certificate. The application form itself asks for the type of licence, the applicant's details, whether the applicant is licensed as a brewer by the Government of Canada, whether the applicant holds a licence under the Excise Tax Act, and how many hectolitres of beer the micro-brewery will produce per year.

Step 4: Pass the inspection and get the licence

Once all information is received, a liquor inspector will complete an inspection prior to a final decision on the application. A manufacturer may operate upon receipt of a PEILCC licence, and the conditions on the licence, the contents of the policy guidelines, and any directives by the PEILCC must be followed. The manufacturer may request approval for the licence to include an on-site hospitality room and a manufacturer's retail store, in addition to the production and storage area. The PEILCC's apply page says that once fully completed, an application for a permit or a licence typically takes about one week to be approved.

All licences are subject to an annual licence fee: winery, distiller's, and brew-pub licences are $400 each, and a micro-brewery licence is $500. The off-site retail outlet fee for a winery, micro-brewery, or distillery is $100. Licensing questions go to the Admin Assistant for the Director of Corporate Services at 902-368-5710.

Step 5: Set up the supply route and the reporting

Moving through the licensing approval process, it is important to consult with the PEILCC on products to be approved and sold. For lab analysis and the PEILCC listing process, contact the Category Manager for Beer and Spirits at 902-368-6274. Manufacturers must provide a Certificate of Analysis from a lab recognized by the PEILCC on all products that are to be listed. Product pricing is based on PEILCC pricing policy: a fixed and variable mark-up component is applied to your cost, which is the PEILCC mark-up. For product pricing and reporting, contact the Financial Analyst at 902-368-5717.

Manufacturers are required to file a monthly compensation report to the PEILCC that tracks inventory, production, and sales, in addition to detailing the amount of commission owing to the PEILCC. Commission due to the PEILCC must be paid monthly in accordance with policy. Adequate records must be maintained to support the amounts reported, and manufacturers are also subject to audits by the PEILCC. Keep production records, inventory records, and excise records from the first batch, not from the first sale — the federal excise licence carries record-keeping and reporting duties that start when manufacturing starts.

What the opened pages do not state

The PEILCC manual does not state a processing time for a manufacturer licence application — the one-week figure in this guide comes from the PEILCC's general apply page, which covers permits and licences together, not manufacturer licences specifically — so treat it as the Commission's general figure and confirm it when you call. The manual does not state the mark-up rates or the micro-brewery discount, because pricing sits in PEILCC policy rather than in the manual, so this guide states neither. The manual also does not state a fee for the hospitality room or the manufacturer's retail store on the licence, so this guide states none. Confirm the current fees with the PEILCC before paying.

Related guides:

• How to Start a Brewery Business in Canada — the national brewery steps, including the federal excise licence and the business registration that apply in every province.
• How to Start a Brewery in Nova Scotia — Nova Scotia's brewery route, for comparison with Prince Edward Island's PEILCC licence.
• How to Start a Brewery in New Brunswick — New Brunswick's brewery licence route, for comparison with the PEILCC package.
• How to Start a Brewery in Ontario — Ontario's brewery licence and LCBO listing route, a different regulator from the PEILCC.
• How to Start a Brewery in Quebec — Quebec's brewery route, for comparison with the PEILCC package.
• How to Start a Brewery in Manitoba — Manitoba's brewery licence route, for comparison with the PEILCC package.

Sources

• Prince Edward Island Liquor Control Commission, Manufacturer's Policy Manual — Winery, Distillery, Brew-Pub and Micro-Brewery Licensing — the 21-day checklist rule, the $300 non-refundable application fee, the $500 micro-brewery and $400 brew-pub annual licence fees, the $100 off-site retail outlet fee, the micro-brewery and brew-pub definitions and hectolitre limits, the business plan contents, the inspection before a final decision, the hospitality room and retail store option, the PEILCC listing and mark-up policy, and the monthly compensation report.
• Prince Edward Island Liquor Control Commission, Apply for a Liquor License — the advice to call the PEILCC main office at 902-368-5710 before applying, the Responsible Beverage Server Certificate requirement for the applicant and all staff, and the typical one-week approval for a fully completed application.
• Canada Revenue Agency, ED200-1 Licensing requirements for manufacturers of beer or malt liquor, wort, yeast, or malt products — the brewer's licence requirement, one licence per physical location, Forms L1, E110, and E111, the surety bond, the $51.10 licence fee, and the April 1 to March 31 validity with automatic renewal.