The Alberta government has scrapped a planned increase to liquor markups following a public dispute between Premier Danielle Smith and Calgary Mayor Jyoti Gondek. The decision, announced by Service Alberta Minister Dale Nally on June 22, 2026, reverses a policy that would have raised prices on beer, wine, and spirits across the province.
Policy Reversal Amid Political Tensions
Minister Nally stated that the markup increase, originally scheduled to take effect July 1, would not proceed. He cited the need to avoid additional financial burdens on Alberta families already facing inflationary pressures. The reversal comes after Premier Smith and Mayor Gondek traded barbs over the proposed hike, with Smith accusing Gondek of supporting higher prices and Gondek criticizing the province's lack of consultation with municipalities.
According to the Canadian Press, the markup would have added approximately 2% to the cost of most alcoholic beverages, generating an estimated $40 million annually for provincial coffers. The government had framed the increase as a revenue tool to fund healthcare and education.
Public Exchange Escalates
Premier Smith took to social media on June 20 to blame Mayor Gondek for endorsing the hike, stating: “Calgary families can thank Mayor Gondek for pushing higher booze prices.” Gondek fired back, accusing Smith of misleading the public and noting that the city had no authority over provincial liquor pricing. “The premier is deflecting from her own government’s decision,” Gondek said in a statement. “Calgarians deserve transparency, not finger-pointing.”
The exchange drew widespread attention, with many Albertans expressing relief at the cancellation. Small business owners and restaurant associations had lobbied against the markup, warning it would hurt the hospitality sector.
Impact on Consumers and Industry
The decision means Alberta will maintain its current liquor markup structure, which is among the lowest in Canada. The province operates a hybrid model where private retailers set prices but pay provincial markups. Industry groups praised the reversal, with the Alberta Hospitality Association calling it “a win for common sense.”
“We are pleased the government listened to our concerns,” said association president Mark von Schellwitz. “This would have been another blow to restaurants already struggling with rising costs.”
Consumers will see no change in liquor prices effective July 1. The government says it will explore alternative revenue measures to address budget shortfalls without directly impacting household expenses.
