Sask. craft beer brewers need relief as pandemic slashes profits, association says

Jeff Allport said his business Nokomis Craft Ales was just getting ready for St. Patrick's Day — one of the busiest days of the year for bars — when the COVID-19 pandemic ground Saskatchewan's economy to a halt. 

The business, located in the town of Nokomis, relies heavily on sales to bars and restaurants in the form of kegs, with other revenue coming from sales of canned beer. 

"We had about 70 or 80 tap accounts, that all of which essentially closed overnight. We lost all those sales," Allport said. "That accounted for about 40 to 45 per cent of our sales."

All of this happened during an expansion for the business, which also does not utilize tap rooms like some breweries in urban locations, he added.

Canned beer sales have picked up but not nearly enough to make up for the shortfall from kegs. Allport said the company brewed half the amount of beer last month that it normally would.

Craft beer sales have gone down across Canada with the Canadian Craft Brewers Association saying their survey suggest as high as 65 per cent of brewery staff have been laid off .

Nokomis had barely been able to keep up with demand last summer. In preparation for the upcoming summer, Allport said a significant capital investment was made.

The current focus amid a pinch on cash flow is brewing variety packs of mixed Nokomis beers for release next month.

Allport said friends will ask if his business is booming as more people drink at home and liquor store sales rise, but that's not the case for him. Still, he remains hopeful.

"I think there is an impetus to support local during this time," Allport said. 

Some breweries 'out in the cold' in aid program gaps, brewer says

Craft beer is a growing industry in the province and brewers were anticipating more growth, according to Mark Heise. Now, they need relief.

Heise is the president of the Saskatchewan Craft Brewers Association and also the president of the Rebellion Brewing Co. in Regina. The company did not sell a single keg of draught beer in April and actually had to accept some returns, he said.

Aid programs from federal and provincial levels while helpful to most are not very accessible to businesses like craft breweries, he added.

"While we appreciate the privilege to have a licence to produce alcohol, we pay dearly for it," Heise said. 

Heise said breweries cannot reliably look to historical data due to the fast growing nature of the business. His business saw a 35 to 40 per cent drop in revenue during January, a typically slow time, Heise estimates.

April or May would typically result in 20 to 30 per cent more than the average earning, which some aid programs rely on to determine eligibility.

"That's pretty tough to qualify for. It's kind of leaving some of us out in the cold on some of the really good programs that could help us right now," Heise said.

There are taxes specific to brewing and the volume of beer that could be waived from both levels of government that could provide relief, he said.

"Our industry will need further support if it is to survive in its present form," said Rick Dalmazzi, executive director of the CCBA in a news release.

"If there was ever a time for beer lovers across the country to support their local craft breweries, it would be right now."