Luke Harford, president, said that the Beer Standard needed modernizing to reflect the fact that there are 2,000+ beer brands in Canada today versus 400 in 1990.
Beer is a food regulated by the nation's Food and Drug Regulations that require it to be a fermented beverage and sets out permitted ingredients including malt barley, wheat, hops and water.
But Beer Canada says the standard needs to be updated to keep pace with and encourage innovation in the category.
"Last fall, the government asked industry for ideas on regulatory changes that could be made that would benefit business but not cost the government any money," president Luke Harford said.
"The government clearly saw the important of this initiative for the beer category and we are very pleased with the commitment to take action in this budget," he added.