Year in review from Ontario Craft Brewers 2014
Toronto, ON – The Ontario Craft Brewers today released their overview of 2014:
2014 was another year of growth and momentum for Ontario Craft Brewers, the industry association of small independent brewers of Ontario. As we welcome the New Year, OCB celebrates the growth of its membership, the improvement and addition of new OCB programs as well as the growth of the craft brewing industry as a whole.
“Ontario’s Craft Brewing industry continues to grow very quickly with existing breweries expanding their facilities and creating jobs while new breweries and brewpubs open in communities across the province,” says Cam Heaps, co-founder of Steam Whistle Brewing and Chair of Ontario Craft Brewers. “Our own membership is at a historical high, with almost 50 breweries now participating in OCB programs.”
INDUSTRY EXPANSION & JOB GROWTH: Today, there are well over 1,000 direct brewery jobs (this includes a small percentage of value brand jobs) and over 4,000 indirect jobs (using a multiplier of four) in Ontario. These 1,000 direct brewery jobs account for about 30% of the direct brewing industry jobs in Ontario.
OCB has currently identified approximately 75 operating breweries in Ontario and another 25 contract brewers, both of whom receive manufacturing licenses from the Alcohol and Gaming Commission of Ontario (AGCO). The contract brewers brew their product at the operating breweries. About 50 of these companies are now members of Ontario Craft Brewers and the association is currently adding new members at the rate of two or three per month.
The member breweries who joined OCB in 2014 include:
5 Paddles Brewing Company, Whitby (http://5paddlesbrewing.com/)
Block Three Brewing Company, St. Jacobs (http://www.blockthreebrewing.
Cassel Brewery Co., Casselman (http://www.casselbrewery.ca)
Kilannan Brewing Company, Owen Sound (http://www.kilannanbrewing.
Lake of the Woods Brewing, Kenora (http://lowbrewco.com/)
Perth Brewery, Perth (http://www.perthbrewery.ca/
Publican House Brewery, Peterborough (http://www.thepublicanhouse.
Side Launch Brewing, Collingwood (http://sidelaunchbrewing.com/
Stouffville Brewing Company, Stouffville(http://
Smithworks Brewing Company, Peterborough (http://www.smithworksbrewing.
Underdog’s Brew House, Oshawa (http://underdogsbrewhouse.
INCREASING SALES AND MARKET SHARE: Since launching in spring 2005, Ontario Craft Brewers have continued to experience growth in sales, consumer awareness, new brewery openings, capital expansions and general industry support. As of 2013, Ontario’s Craft Brewers’ share for premium priced brands was almost 4% of the total beer volume sold in Ontario.
Current average growth rates across retail channels have been well over 10% annually for a number of years and most channels continue to grow at a good pace. In addition, craft beer continues to be the fastest growing segment within the LCBO’s beer category, growing at anywhere from 20 to 30% per year.
In 2013, we estimated there were approximately $250 million in sales in Ontario (including value brands). A substantial amount of total sales comes from smaller licensees where selection is getting broader especially in the independent bars and pubs. And with increasing consumer demand for our beers, Ontario Craft Brewers are thrilled to see larger chain accounts also taking a greater interest in our products.
RETAIL SALES GROWTH: OCB continues to work closely and very successfully with LCBO, implementing merchandising programs and tasting opportunities in stores throughout the province. The LCBO has continued its multi-year program of showcasing craft beers in their outstanding store network. In LCBO, craft beers continue to grow in popularity and craft beer sales continue to grow. According to LCBO (Dec. 2014), year-to-date, sales of Ontario craft beer are $41.3 million, an increase of 27.2 per cent over last year.
OCB GOVERNMENT RELATIONS: OCB continues to work with the provincial government to maintain and fine tune stepped tax structures and improve members’ access to retail in the province. To that end, OCB has been working closely with the government of Ontario’s asset review panel led by Ed Clark and will continue to do so in order to improve selection in all of the province’s retail outlets, further enhance the retail experience for consumers and allow us to double our direct brewery jobs across the province. OCB also worked with federal Canadian Food Inspection Agency on the proposed amendments to Canada’s beer standards of identity.
GOVERNMENT GRANTS CATALYZE COMMUNITY GROWTH:Through the last 10 years, the Government of Ontario has promoted and supported the growth of a vibrant and renewed Ontario craft brewing industry. Several Ontario breweries recently received grant and funding support from the Ontario government through its Local Food Funds and other grant programs. The government has supported this industry through direct small business grants and loans as well as reduced taxes on product.
Indirectly, the strategy has supported spin-off industries such the beer festival industry, the brewing equipment industry, the local hop industry, brewing educational programs, tourism destinations, and it has contributed enormously to local, not-for-profit fundraising projects across Ontario.Government grants are a catalyst for Ontario communities, providing much-needed seed funding to businesses so they can grow, hire local talent, reinvest in the local economies and create many spin-off benefits.
ONTARIO SPEAKER’S LEGISLATIVE TASTING: In March 2014, members of the Legislative Assembly of Ontario gathered in the Queen’s Park Legislature for an annual tasting of the fresh, local beer produced by Ontario Craft Brewers. Hosted by Hon. Dave Levac, Speaker of the Legislative Assembly of Ontario 300+ Ontario MPPs and Queen’s Park staffers sampled 87 different craft beers from breweries across the province and cast their votes in favour of the craft beers to be highlighted at the Legislative Assembly for 2014-2015. The craft beer winners of the annual Speakers tasting event were:
The Speakers Choice: Mill Street Original Organic Lager
Golden Lagers, Pilsners, & Light Beer: Steam Whistle Pilsner
Amber Lagers, Ales & Honey Beer: Old Credit Amber Ale
Wheat Beer or Specialty: Cameron’s Rye Pale Ale
Refreshing Ales: Highlander Brew Co. Lion Grass
Malty Dark Lager or Ale: Lake of Bays Spark House Red Ale
Bold flavoured Ale, Stout or Porter: Amsterdam Boneshaker IPA
OCB EXPORT PROGRAM: Export is an exciting growth industry for Ontario Craft Brewers. Many OCB members are selling their beer outside of the province of Ontario, with several breweries (ie: Steam Whistle, Mill Street, Beau’s, Flying Monkeys, Lake of Bays, Grand River, Black Oak) selling in other provinces (ie: Alberta, BC, Quebec and New Brunswick), south of the border (ie: Michigan, New York state), Europe (ie: Spain), Mexico and Asia (ie: Taiwan).
OCB MARKETING ACTIVITIES: OCB continues striving to make Ontario a North American Centre of Excellence for Craft Brewing. OCB member breweries participated in hundreds of tasting events and festivals across the province. Breweries and their brands continue winning national and international awards and shelf and tap space continues to increase in stores, bars and restaurants throughout the province. With the provincial government grant support, OCB continues to administer ongoing marketing programs and producing several important events. Program highlights include:
OCB SOCIAL MEDIA: OCB is pleased to introduce a new, re-designed website (www.ontariocraftbrewers.com) with an updated look, additional features and simplified search elements. This site is the go-to place for craft beer lovers seeking information about OCB member breweries, brands and tasting tips.
OCB social media channels also continue to flourish with 12,700+ followers on Twitter (@OntCraftBrewers), 5,700+ likes on Facebook (www.facebook.com/
ONTARIO CRAFT BEER WEEK: The fifth annual Ontario Craft Beer Week was the biggest celebration of craft beer in the province to date with over 300 tasting events in 50+ communities across the province. This year the week kicked off with an industry media launch at Yonge Dundas Square, the site of the annual craft beer tasting event, Session Craft Beer Festival. Again, there were special meet the brewer beer dinners, collaborative brews, keg swaps, pub crawls, musical performances, art shows, idol-style battles and craft beer & cheese pairings held in communities across the province (www.ocbweek.ca). OCB Week 2015 will take place June 12 – 20, 2015.
ONTARIO CRAFT BREWERS CONFERENCE (OCBC) 2014: With 600+ people in attendance, Ontario Craft Brewers hosted its annual industry conference at the Allstream Centre in downtown Toronto on Thursday, October 16, 2014. The one day industry event included the hugely popularOCBC Suppliers Marketplace, a hive of activity with 45 craft brewing suppliers exhibiting equipment, technology and services. The conference and marketplace finished with a craft beer and cheese social (with cheeses supplied by Dairy Farmers of Canada) and a cask tasting at Mill Street Beer Hall. OCBC 2015 will take place in October 2015 (date TBC).
OCB TECH TALKS: OCB has successfully introduced a new, ongoing series of technical seminars for the craft brewing community. Open to members and non-members in Canada and the U.S., these interactive lectures feature invited speakers presenting on selected topics of interest, were presented monthly or bi-monthly with participants invited to take part in person, or online. 2014 topics are archived on the website (http://www.
OCBU(online craft beer training program): OCB’s free, online, e-learning craft beer certification program enables restaurant and bar staff to become Ontario Craft Beer Pros. Developed with the assistance of Niagara College, Mirella Amatoof Beerology, beer specialist Bill White of Better with Beer, and the brewmasters and specialists with OCB, the e-curriculum for OCBU provides the most up-to-date and accurate information about the booming world of craft beer. For OCBU info, email rmrmarketing@sympatico.ca.
OCB PODCASTS:Produced by Ontario Craft Brewers (OCB) and hosted by Canada’s first female Cicerone, Mirella Amato of Beerology.ca, monthly podcasts featured interviews and themed beer tastings with OCB brewmasters. Podcasts can be downloaded fromwww.ontariocraftbrewers.com, www.beerology.ca and www.iTunes.com. The 2015 series will include a series of discovery tasting interviews with Ontario beer writers/bloggers.
OCB BEER LOCATOR APP: It’s easy to find an OCB beer using OCB’s hand-held app on the OCB website or on iTunes, iPhone and Android. The app lets you browse a list of OCB Beers sold in the LCBO or The Beer Store or at local licensees, alphabetically or by Brewery.
The website also offers an OCB Interactive Tasting Tool to walk you through the tasting process, show you what to look for in different beer styles, and allow you to keep a permanent record of all the OCB brands you taste. Consumers can also download the latest OCB Style Guide.
OCB SEAL of EXCELLENCE: OCB beer lovers should continue looking for the OCB seal on OCB member brands when visiting brewery retails stores, the LCBO or The Beer Store.
“We look forward to another amazing year of growth and success,” says Heaps. “Our membership will work together to continue advancing this industry, producing jobs and making great beers for the people of Ontario.”
