Regulation and Deregulation of the Brewing Industry : The British Columbia Example

In March 1981 the British Columbia government partially deregulated the pricing of beer in the province. This study explores the impacts of this policy change on pricing and competition in the British Columbia brewing industry. It examines price movements since the partial deregulation, discusses sources of price pressure, including taxes and general inflation in input costs, and brewing company profits. The paper concludes that excessive oligopoly profits were not the cause of beer price pressure. To close, a range of policy suggestions are put forward to promote competition in the brewing industry, and establish the generality of these findings for other provinces is assessed