E-Malt.com News article: Canada: Nova Scotia brewers union slams beer policy to brew beer for Oland Brewery

A Nova Scotia brewers union claims Saint John's Moosehead brewery is benefiting from a beer policy that's allows outside breweries to brew and bottle beer for Halifax's Oland Brewery, Canadian Press and NB Telegraph-Journal posted on January 6.

Gary Foran, president of Local 361 of the Brewery and Soft Drink Workers union, said a 2002 Nova Scotia beer policy, which allows for "reciprocity" is sending brewing capacity to other plants, such as Moosehead's West Side brewery. "We're going to lose some additional business and when it's all said and done we estimating we're going to be about 250,000 hectolitres of business (lost)," he said.

But Jean Lepine, spokesman for Labatt Breweries, which owns the Oland Brewery, said that isn't the case. "The truth is I don't really understand Gary's concern. It's working for us. We're shipping Keith's out and that's a great news story for the Oland Brewery and the employees."

Reciprocity means breweries can have their own company's plants in other provinces brew beer for them, allowing a brewer to ship in as many hectoliters as are shipped out. Mr. Foran said if Oland Brewery put more money into the plant through capital investments it wouldn't have to send brewing capacity to New Brunswick.

He contends the plant is refusing to upgrade at the expense of working hours for the nearly 200 men and women in Local 361. Mr. Lepine said the company has invested about $50 million in the plant over the last decade. "We continue to invest in the Oland Brewery," he said. "And we've got more plans to do so."

The deal allowing brewing rights between Moosehead and Labatt came about in October. Neither side has commented on how large it is, however sources have said the contract was big enough for Moosehead to substantially expand its facilities. Moosehead is also now able to import into the province an amount equal to what it exports without paying a 59 cent-a-litre tariff.

Under a new provincial policy that was introduced for Molson to set up shop in Moncton, Moosehead will be allowed to import Labatt products produced outside the Maritimes, such as Labatt partner brand and top-selling beer Budweiser, free of charge. Joel Levesque, spokesman for Moosehead Breweries, declined specific comment on the company's contracts with other brewers, saying only that he's aware of Labatt's operations in Halifax and has no concerns.


11 January, 2006