Canada, AB: Alberta’s craft beer industry not growing as fast as it could because of regulatory barriers

Albertans drink a lot of beer but have few craft breweries, MetroNews Canada reported on July 20.

But some say that's about to change.

A new report from Beer Canada, the industry’s trade group, shows Albertans had Canada’s third highest rate of beer consumption behind only Newfoundland and Quebec.

Yet that hasn’t translated into a big growth in local brewers.

Alberta had 40 brewers as of 2015, the same number as Nova Scotia, a province with less than a quarter as many people.

British Columbia, with about 500,000 more people than Alberta, has 120 breweries by comparison.

Ben Rix, one of four co-founders of the recently launched Bent Stick Brewing company in Edmonton, said its regulatory barriers have stood in the way of growth.

Rix and his co-workers all worked at Alley Kat Brewing before the government changed rules in 2013, allowing brewers to be licensed without requiring them to produce large volumes.

“When that rule changed we all started chit chatting at work,” Rix said.

Since that first meeting, Rix said the company bought equipment, found a location and perfected their recipes.

“People have been excited to get some new players in the area and the beer has been selling really well so far,” he said.

Stehphen Anderchek, the business manager of Village Brewery in Calgary, said removing the large volume requirement made it easier to start-up.

“You have people who are willing to make investments now where it is not an investment of C$5 million,” he said.

Anderchek said the consumer demand is there and breweries will rush into fill it.

“Now you are seeing the catch-up. The interest in people wanting to drink different styles,” he said.

Terry Rock, executive director of the Alberta Small Brewers Association, said all the ingredients are here for more breweries.

“We’re a world leader in the production of malt barley,” he said. “We can create the freshest beer on the continent.”

Rock said he knows of at least a dozen new brewers that should open their doors in the next year or so and believes Alberta’s industry will swiftly catch up.

“I think we can actually build a tourism industry around this.”

Tony Stolz, manager of Olds College’s Brewery, which is connected to the college’s brewing program, said the course has plenty of demand.

“Our program has been full since we opened up the door,” he said.

Stolz said his students are finding plenty of work when they graduate or they are starting their own breweries, too.

“Most of them want to work locally and they want to work in the craft industry,” he said.

With three weeks of business behind him, Rix said he welcomes new competitors, hoping that any new craft productions will make the whole industry stronger.

“If there are a whole bunch of breweries on the shelf the more likely it is to get someone to stray from their Coors Banquet or Bud Light choice.”

24 July, 2016