Craft Beer and Spirits Industry in Manitoba: Growth Amidst Challenges
The craft beverage industry in Manitoba is undergoing dynamic changes, with significant gains in local production and diversification but facing new economic challenges.
Jordan Taylor
- 2024-01-05
- Updated 12:25 PM ET
(NewsNibs) - Over the past year, Manitoba's local craft beer, cider, wine, and spirits industries have seen notable developments. Noteworthy expansions include the opening of a physical brewery on Fort Street in December 2022 and the doubling of craft breweries in Brandon the same month. 2023 began with a brewery opening its doors after two years of brewing out of another facility. Amidst these openings, Little Brown Jug has continued to expand production at its establishment on William Avenue. Additionally, true to the trend of local craft culture, True North Sports & Entertainment incorporated local craft beer from Little Brown Jug and similar producers into the beverage lineup at Canada Life Centre events.
Landscape of Craft Alcohol Sales
Despite the growth, local craft beer sales in Manitoba have faced a downturn in 2023, recording the industry's first-ever decline. Influences on this decline include shifting customer preferences towards hard seltzers and canned cocktails, as well as a general dip in alcohol consumption among the younger demographic. The Liquor Marts "Hot Buys" program, which offered temporary markdowns, further impacted local sales when Manitoba Liquor & Lotteries matched these discounts for deeper cuts. However, the practice of matching discounts has been ceased following its detrimental effects. Inflation has also touched the industry, raising the cost of essential supplies like ingredients, cans, and labels.
Economic Pressures and Industry Outlook
The industry is bracing for additional financial pressure as businesses begin repaying Canada Emergency Business Account (CEBA) loans starting January 18. Meanwhile, a report revealed a brewery in Brandon was up for sale in November, hinting at potential sales or closures of other breweries as well. Despite the challenges, there have also been developments such as a new taproom and rooftop patio opening in Gimli and the launch of an obsolete brewery in Dauphin in September whose products can now be found in Winnipeg Liquor Marts and beer vendors. A local producer of wine, cider, mead, and coolers is also expanding with a larger facility on Berry Street, aiming to increase both taproom space and production capabilities.
Manitoba's craft beverage industry continues to evolve with new players entering the field and established ones expanding, signifying a robust entrepreneurial spirit. However, with the first recorded downturn in craft beer sales and looming economic pressures, businesses are navigating uncertain waters. As the industry adapts to shifting consumer trends and navigates the fiscal climate post-pandemic support, its resilience and creativity will be pivotal factors for sustainable growth.
