Canada, MB: Black Wheat Brewing for sale after two years of operations

Black Wheat Brewing is up for sale after two years of operations in Brandon, the Brandon Sun reported on November 4.

“Black Wheat Brewery is listed for $1.5 million. That is the asking price for the business along with the equipment,” Munn Group at Royal LePage partner Zach Munn told the Sun. “There is the potential that the building could be purchased separately.”

Co-owner Ted Birch declined to comment on the sale of the business. Munn said the brewery’s financial details will be disclosed to qualified buyers who have signed a non-disclosure agreement, underscoring the importance of confidentiality in the transaction.

The move comes at a time when the brewing industry is facing significant cost pressures, Manitoba Craft Brewers Association executive Tim Hudek told the Sun.

“A lot of costs have gone up dramatically in the last couple of years. I mean, there’s a myriad of reasons for that,” Hudek said. “Factors such as inflation and the war in Ukraine are contributing to these cost increases.”

Hudek also said that it is harder for operators to bring their prices down because their products tend to be purer than those sold by national brands, as less adjuncts are used.

Overall, he acknowledged, the industry is witnessing a slowing down in the uptake of craft beer. “When people are squeezed more financially, they might not necessarily be able to afford to go out to eat at their favourite restaurant as much,” he said. “If they’re hanging out at home on the weekend, you know, they might have to go for a discount brand instead of their favourite beer.”

Hudek said the social transformations due to COVID have created a real shift in much of the economy, adding that the inability of restaurants to return to the pre-COVID era is affecting his industry because that is where people might have been introduced to local beer.

“COVID hasn’t gone away, and many people may not have returned to their pre-COVID lifestyle. This has certainly impacted people’s ability to support local businesses and enjoy local products,” he said.

Hudek said he hopes that politicians find ways to address these economic issues so that people have enough disposable income to enjoy activities like sports, theatre, or simply going out for entertainment.

“We’re optimistic about working with the new government to sort of improve the position of craft beer in Manitoba.”

The association, he said, also hopes Manitoba Liquor and Lotteries can help position their products better to encourage people to support local brands. He cited a survey that found that $1 spent on a local product was worth $5 for the local economy because the money wasn’t leaving the community.

“It’s not like C$1 spent on an OTC beer is the same as $1 spent on Budweiser. It’s more like $5 because the money stays here and it gives back to the local economy, hires local people, and gives to local charities. The economic impact is huge,” he said.

When Black Wheat Brewing opened its doors two years ago, the microbrewery marked a return to the city’s brewing tradition after almost a century-long absence. Situated at 402 10th St., Black Wheat Brewing established its product line by introducing “Empire Ale,” a West Coast IPA, and “Reality Czech,” a Czech-style pale lager.

Before Black Wheat Brewing arrived on the scene, the city had a brewery known as the Empire Brewing Company, which ceased operations in the 1930s.

05 November, 2023