Robert Phelps: B.C. brewers can raise a glass to the growth in low-alcohol beer
rerolled on giantweed from the source
Craft beer is a booming industry in B.C. There are currently more than 170 active breweries in the province and sales of B.C. craft beer have doubled in the past four years. From the Pacific to the Rockies, new craft breweries are opening, hiring and — you guessed it — brewing.
Named the best beer town in Canada, Vancouver is no exception, and brewery culture is well-established. With talk of the provincial brewery count reaching 200 by year’s end, industry growth is nowhere near tapped out.
Conversely, while brewing facilities continue to multiply, Canadian beer sales are at a relative standstill. Domestic consumption of beer dropped significantly from 2016 to 2017, and while this could be attributed to a slight increase in the price of beer, the growing trend of alcohol moderation by younger Canadians is also a factor.
Statistics show that Canadian consumers between the ages of 15 and 24 are drinking less than they used to, due in part to increased concern about the health risks of alcohol. “Dry January” has greatly increased in popularity since 2013. What started as a British public health campaign is now widely observed in Canada and the U.S.
Taking a cue from Dry January, February was declared Dry Feb in Canada — or Lose the Booze in B.C. — a campaign developed by the Canadian Cancer Foundation aimed at raising funds for research by encouraging people to stop drinking for 28 days. The new Canada’s Food Guide also stresses the risk of consumption, stating that alcohol is “a leading global health concern” and warning non-drinkers to never start.
These movements indicate more than a market trend. They hint at a larger shift in the cultural perception of alcohol consumption. However, shifting consumer values do not have to spell disaster for craft beer producers. The industry is already looking for ways to adapt to changing demands and many are banking on low- and non-alcoholic beer as a possible solution. Alcohol-free beer accounted for more than 50 per cent of industry shares in 2016.
In light of these trends, producers worldwide are investing in innovative techniques to remain ahead of the curve. Last month, Heineken released Heineken 0.0, which promises to have all the flavour of its alcoholic counterpart. February also marked the launch of the first cannabis-infused beer in the U.S., which also happens to be alcohol-free.
While cannabis products like infused beers are still illegal in Canada, this ban is scheduled to lift by Oct. 17. In anticipation of new regulations, Molson Coors Brewing has already partnered with a cannabis grower and is expected to release its own non-alcoholic cannabis-infused beer by the autumn.
Consumers may be drinking less overall, but that doesn’t mean they have lost their taste for beer, or that they no longer value the social benefits that come from sharing a cold one with friends and colleagues. Consumers don’t go to the local brew pub just to get a buzz — although that is a secondary benefit. They go to take part in a shared cultural experience. The music, the laughter, the booths stained dark from years of spilled pints are all part of the reason people keep coming back.
Craft breweries are in the unique position to brew low- and non-alcoholic beer in small batches that have high profit margins. These breweries can offer a range of quality products in a variety of flavours and still grow their businesses. Specializing in local, artisanal low- and alcohol-free beer will help brewery owners corner an untapped consumer market.
Robert Phelps is president of Silver Chef, Canada’s leading dedicated hospitality funding partner that has worked with more than 2,300 Canadian hospitality businesses. Silver Chef provides restaurant owners with a ‘pathway to ownership’ for hospitality equipment.
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