Craft brewers want federal funding support - claim that if there was ever a time for a local brew it would be right now

News 100 yellowBy Pepper Parr

April 29th, 2020

BURLINGTON, ON

 

A ray of sunshine when the Canada’s Craft Breweries said: “If there was ever a time for beer lovers across the country to support their local craft breweries, it would be right now.”

The comment was part of a plea to the federal government for financial support.

A survey of the craft breweries on the effects of the COVID-19 pandemic on the brewing industry in Canada. There was sufficient response from across the country to achieve a 95% confidence level with 5% margin of error.

brewery photo

Let the suds flow.

“Similar to many other industry sectors, craft breweries across Canada have been dramatically impacted by the current health and economic situation.” began Rick Dalmazzi, Executive Director of the CCBA. “For example, 44% of breweries reported a year over year revenue drop of over 50% in March, while another 25% were down over 25%. Over 77% of breweries anticipate that April will be the same or worse.”

There are over 1,100 craft breweries in every province and territory in Canada, with over 90% of them opening in the last decade. Many have helped to rejuvenate local economies and bring new employment to communities that have otherwise lost jobs. In provinces where it is legal, many breweries have added a home delivery service to help replace lost revenue. But it doesn’t come close to making up for their own restaurants and taprooms being closed, and keg sales to bars eliminated. The 317 survey respondents reported having to lay off 4,180 of their 6,409 employees, or 65%.

brewery logo“Cashflow is the biggest problem”, continued Dalmazzi. “Many of our member breweries are still in their investment growth phase, and therefore marginally profitable if at all. Everyone’s doing whatever it takes to weather the storm as best they can. Fortunately, we’ve seen very few permanent closures, but that will change if current conditions extend into the summer.” continued Dalmazzi.

The survey also found that craft breweries are stepping up to support the fight against COVID-19. Over 15% of respondents said that they are either making hand sanitizer or that their beer is being used to make it elsewhere. Most of the hand sanitizer being produced by breweries is for use within their local community.

“We are appreciative of the federal government’s wage subsidy and other programs. Ottawa has been very responsive to the financial needs of small businesses. However, our industry will need further support if it is to survive in its present form.” concluded Dalmazzi. “And if there was ever a time for beer lovers across the country to support their local craft breweries, it would be right now.”

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1 comment to Craft brewers want federal funding support – claim that if there was ever a time for a local brew it would be right now

  • Wayne Brown

    Burlington has one of the best, and best known, brewers in the Country. John Romano, of Nickelbrook, is a 20 year overnight sensation in the industry. he never says no to assisting a variety of community endeavors and is one of the reasons Burlington is number one in Canada. Perhaps it’s time to assist him, and other brewers, during these dark days for the brewing industry.