E-Malt.com News article: Canada, SK: Saskatchewan residents consume more beer than national average

The country’s beer economy accounts for roughly one in every 100 Canadian jobs and almost one per cent of our Gross Domestic Product (GDP), according to a new report by the Conference Board of Canada (CBC) that measured the economic impact of beer from field to fridge.

In Saskatchewan, the beer industry supports 3,768 Saskatchewan jobs, most of which revolve around the sale of beer such as retail stores, restaurants and entertainment, according to the CBC report. All industries contribute to the Canadian economy but surprisingly beer is on par with postal services and just behind pharmaceuticals in total GDP production.

“When you drink a bottle of beer, you are supporting not only the beer brewing industry directly, but also many other industries along the supply chain—the indirect benefits to the economy of the beer consumption,” the report said.

Saskatchewan has a small production industry but because of farming, the Prairie provinces have the largest percentage of jobs in crop and animal production in Canada, the report says. Saskatchewan farmers are expecting 9.2 million tonnes of barley in this year’s record crop, however it’s unknown exactly how much will go to beer production, Cjme.com reported on November 7.

Because Saskatchewan is so central, the province also provides a lot of transportation and warehousing jobs and profits.

Although Saskatchewan isn’t a large brewery hub, prairie province residents consume a lot of barley based beverages. The Saskatchewan Liquor and Gaming Authority (SLGA) reported a net income of C$232.2 million in all alcohol sales for the 2012-2013 fiscal year.

In the past year, SLGA says Saskatchewan consumed more than 70 million litres of beer which is roughly 180 cans for every man, woman and child in the province. CBC report, however, says the Prairie provinces consumed just slightly more than the national average of 235 bottles per person.

“More than half of all beverage alcohol sold in Saskatchewan is beer,” SLGA spokesman David Morris said.

The report said Saskatchewan residents added more than C$152 million to the public coffers through beer taxes. Canada’s entire beer business, including sales at the liquor store, belched up more than C$5.8 billion in taxes.

In Saskatoon, the Great Western Brewing Company (GWBC), Saskatchewan’s largest brewery, employs 75 people and produced roughly 14.5 million litres – 40.8 million cans - of beer last year.

“Beer is a combination of tradition, availability; it’s rooted in so much culture and tradition,” GWBC president Michael Micovcin said.

“I’m not surprised that either on a Canadian level, a western regional level or provincial level like Saskatchewan that the economic impact is significant.”

Micovcin said GWBC experienced high single digit growth over the past couple years. He attributes the slow growth to what he says is an overall flat Canadian beer market.

“In fact, I think probably through the end of September, beer sales across Canada are down two per cent,” he said.

“In some cases consumers are moving to other categories. Wine is a high-growth segment.”

Micovcin said a big hurdle for the industry is innovation and how to attract more demographics like women; who only make up 20 per cent of all beer consumption.

However, he said the gaining popularity of micro breweries and unique brews could reignite the country’s love affair with beer.

“Saskatchewan right now, I think, is a little behind the curve but I think as it catches up over the next three to five years it’s going to be an interesting and exciting time for beer drinkers in the province,” Micovcin said.


08 November, 2013