August 12, 2019 – Sask Government Examines Making Fony-Craft License into Appropriate Global Production Classification. Have you heard of Minhas Craft Brewery? Well, this so-called little Canadian fish may not be as little, or Canadian, as everyone thought.
Minhas Craft Brewery
David vs. Goliath is one of the most rousing tales of the Bible that, over time, has become somewhat of a template for many stories found in fables, literature, and cinema. Thanks to a human-based emphasis for compassion and empathy, the idea of an underdog taking on ‘the man’ or some other type of ‘bad guy’ makes for a tale that all will love.
However, the concept that the man is bad and the underdog is good isn’t always genuine. In another way, occasionally Goliath isn’t that bad of a guy, and sometimes David is a bit of a callous shyster.
The case involving a Calgary based Minhas Craft Brewery is nothing short of what could be the next biggest soap opera. Minhas markets itself as a local treasure and David insists he’s going up against the ruthless, foreign-owned Goliaths, also known as Labatt and Molson.
Tax Subsidies and a Fake ‘Little Guy’
It has been reported in the past, that Ravinder Minhas, co-owner of Minhas Craft Brewery, enjoys playing the victim. This is a smart move on his part, and Minhas has received massive tax subsidies for being the ‘little guy.’ Alberta’s flawed small brewer tax program amounted to subsidies that totaled $5.6 million in 2010, wow. This tax program was initially created to allow local craft breweries to grow but seems to have achieved the complete opposite.
While Minhas Craft Brewery is marketed as the loveable all-Canadian little guy, when you take a closer look at this brewery, such statement is the next closest thing to a lie.
The Overseas Endeavours of Minhas
As previously reported, all of Minhas brewery jobs are located in Monroe, Wisconsin. However, even though the jobs are in the U.S., the Alberta government still taces Minhas at a lower rate than big brewing companies – which employs Canadians. This means, you’ve guessed it, that the Albertian government is subsidizing brewing jobs in the U.S., with your taxpayer money.
It only takes a little research to discover that Minhas also happens to own a company called Global Distillers SRL. A quick Google search of Global Distillers uncovers that it’s based in Barbados. We weren’t aware Barbados had become a Canadian territory.
Further research shows that all of Minhas’s trademarks are registered to a Barbados-based company. What does this mean? Ravinder Minhas is funneling all of his Alberta tax subsidy profit into an offshore sheltered tax haven.
The bottom line of the story is that Minhas Craft Brewery’s beer is brewed in the U.S. and sheltered from taxes in Barbados, while being subsidized in Alberta, so obviously it’s a Canadian company. Not.
Troubles in Paradise
However, Minhas’ fantastic business plan, or amazing plan to rip off the Alberta government, has hit a little bump. How could this be? Well, Minhas beverage production is over the 200,000 hectoliter limit. According to regulation, this means that Minhas does not qualify for the small brewer subsidies.
This has lead to the deployment of Minhas’ ‘Plan B’.
Situated in a small industrial space, this facility is set to output less than one percent of the volume of his Wisconsin brewery.
Better yet, in a widely distributed letter, there was no doubt that Mr. Minhas’ pint-sized brewery is being played for all it’s worth. Obviously, the best way to increase Alberta government subsidies is to tout Alberta ‘jobs and investment’. Even if the company being subsidized is just ripping off the Alberta government.
No Comments Available For Defense
We are firm believers that there are two sides to every story, but when it comes to Minhas side, no one will share. Alberta Gaming and Liquor Commission CEO Gerry MacLennan has declined to comment. Furthermore, Minhas himself has also refused to comment on the situation.
Despite the lack of comment, the ball is now in the AGLC’s court. Will they revamp regulations? Or, continue subsidizing a brewery in Wisconsin that fakes it as a Canadian company? I guess we’ll have to wait and see!
Media ContactCompany Name: Minhas Sask Distillery, Winery and BreweryContact Person: John SmithEmail: Send EmailPhone: (306) 352-2244Address:444 McLeod St Unit CCity: ReginaState: SKCountry: CanadaWebsite: www.minhassask.ca/
