Key Takeaways
- The craft beer industry in Canada, including Calgary, is experiencing a decline due to changing social trends and challenging market conditions.
- Small breweries are struggling to adapt to increasing costs, such as rent and supply chain expenses, and are being forced to get creative to stay afloat.
- The reclassification of small manufacturers’ licenses by Alberta Gaming, Liquor and Cannabis has resulted in higher taxes for breweries producing over 180,000 hectolitres per year.
- The suspension of Olds College’s Craft Beverage and Brewery Operations program has limited opportunities for new brewers to enter the industry.
Introduction to the Decline of Craft Beer
The craft beer industry in Canada, which experienced a significant boom in the 2010s, is now facing a decline. According to Christina Owczarek, owner of XhAle Brew Co., the next generation is not drinking as much, and the industry is seeing attrition. This trend is not unique to Calgary, but rather a reflection of a broader shift in social trends and market conditions. As a result, breweries are being forced to adapt and find new ways to stay competitive.
Adapting to Changing Social Trends
Breweries in Calgary, such as XhAle Brew Co. and Prairie Dog Brewing, are trying to stay ahead of the curve by offering new products and experiences. For example, XhAle Brew Co. is canning out of Prairie Dog Brewing and trying new flavors such as lemon-lime sodas. They are also considering branching out into non-alcoholic beverages. According to Christina Owczarek, "We’re seeing post-COVID, getting people out of the house and adapting to that. You’ve definitely got to pull more tricks out of your hat." This shift towards diversification and innovation is essential for breweries to stay relevant in a changing market.
Challenges Facing Small Breweries
Small breweries in Calgary, such as Evil Corporation Brewing, are facing significant challenges, including increasing costs and a competitive market. The closure of Evil Corporation Brewing is not a surprise to Laura Cole, co-owner of Prairie Dog Brewing, who notes that the market is getting trickier to navigate. According to Cole, "Especially rent going up and supply chain — we don’t have the commodities of scale in our ordering. We’re ordering for two or three batches at a time. For small batches, it’s a higher price." To combat these challenges, Prairie Dog Brewing has added live music and trivia nights, and has opted for a business model where its restaurant and brewery can support each other.
Regulatory Changes and Their Impact
The reclassification of small manufacturers’ licenses by Alberta Gaming, Liquor and Cannabis has also had a significant impact on the industry. Breweries producing over 180,000 hectolitres per year are now taxed $1.25 per liter, which is a significant increase. This change has made it difficult for small breweries to compete, and has limited the opportunities for new breweries to enter the market. Additionally, the suspension of Olds College’s Craft Beverage and Brewery Operations program has further limited the opportunities for new brewers to enter the industry. According to Owczarek, who helped teach the program, the course itself got too expensive to facilitate.
The Future of Craft Beer in Calgary
The future of craft beer in Calgary is uncertain, but it is clear that breweries will need to continue to adapt and innovate to stay competitive. By offering new products and experiences, and by finding ways to reduce costs and increase efficiency, breweries can stay ahead of the curve. However, the decline of the craft beer industry in Calgary is a reflection of broader social and economic trends, and it remains to be seen whether the industry can recover. As the industry continues to evolve, it will be important for breweries to stay focused on their core values and to find ways to connect with their customers and communities. By doing so, they can build a loyal following and stay competitive in a changing market.
