Does B.C.’s craft beer market have room to grow?

Paul Kamon, Vancouver Craft Beer Week business developer; Chris Bjerrisgaard, Vancouver Craft Beer Week marketing director; and Leah Heneghan, Vancouver Craft Beer Week events director
Paul Kamon, Vancouver Craft Beer Week business developer; Chris Bjerrisgaard, VCBW marketing director; and Leah Heneghan, VCBW events director

Paul Done, Epicmedia principal; and Greg Foweraker, Innate founder
Paul Kamon, Vancouver Craft Beer Week business developer; Chris Bjerrisgaard, VCBW marketing director; and Leah Heneghan, VCBW events director

Tara Martinez, BCBusiness account manager; Margaret Bru, Kendall Hunt Publishing acquisitions editor, Western Canada; and Adrian Hembruch, Newad account executive
Paul Kamon, Vancouver Craft Beer Week business developer; Chris Bjerrisgaard, VCBW marketing director; and Leah Heneghan, VCBW events director

Ian McKay, Driftwood Brewery partner; and Chris Bjerrisgaard, Vancouver Craft Beer Week marketing director
Paul Kamon, Vancouver Craft Beer Week business developer; Chris Bjerrisgaard, VCBW marketing director; and Leah Heneghan, VCBW events director

Rob van Egmond, Platinum Group Metals exploration manager; Jamie Floyd, Ninkasi Brewing owner/founder; and Peter Thiersch, Strange Fellows Brewing lead brewer
Paul Kamon, Vancouver Craft Beer Week business developer; Chris Bjerrisgaard, VCBW marketing director; and Leah Heneghan, VCBW events director

Dax Droski, Cocktails & Canapes partner; and Nathan Rayment, Postmark Brewing managing director
Paul Kamon, Vancouver Craft Beer Week business developer; Chris Bjerrisgaard, VCBW marketing director; and Leah Heneghan, VCBW events director

Rebecca Whyman, CBC On the Coast beer columnist; and Carlos Mendes, Davis LLP associate
Paul Kamon, Vancouver Craft Beer Week business developer; Chris Bjerrisgaard, VCBW marketing director; and Leah Heneghan, VCBW events director

Braden Lively, Jardine Lloyd Thompson Canada account representative; and Ben Fitzpatrick, JLTC associate account manager
Paul Kamon, Vancouver Craft Beer Week business developer; Chris Bjerrisgaard, VCBW marketing director; and Leah Heneghan, VCBW events director

Matt O’Grady, BCBusiness editor-in-chief; and Brew Love producer Jeremy Dyson
Paul Kamon, Vancouver Craft Beer Week business developer; Chris Bjerrisgaard, VCBW marketing director; and Leah Heneghan, VCBW events director

Anthony Frustagli, Parallel 49 Brewing Co. owner; and Paul Gibson-Tigh, Parallel 49 sales rep
Paul Kamon, Vancouver Craft Beer Week business developer; Chris Bjerrisgaard, VCBW marketing director; and Leah Heneghan, VCBW events director

Bryan McCook, Wolf Brewing managing vice-president; and Ken Malenstyn, Big Red Barn Entertainment principal
Paul Kamon, Vancouver Craft Beer Week business developer; Chris Bjerrisgaard, VCBW marketing director; and Leah Heneghan, VCBW events director

Kirsty Senior, BCBusiness production manager; Alexis Baran, Tourism Vancouver marketing production coordinator; Ariane Fleischmann, Canada Wide Media Ltd. production co-ordinator; Kathleen Almeida, Canada Wide Media marketing and events manager;
Paul Kamon, Vancouver Craft Beer Week business developer; Chris Bjerrisgaard, VCBW marketing director; and Leah Heneghan, VCBW events director

Brewers are taking a strong interest in how they engage with their surrounding communities as local beer markets continue to grow. With craft beer sales now passing the 20 per cent mark, the way businesses interact with both themselves and with their customer bases are more important than ever.

Industry professionals and beer enthusiasts kicked off craft beer week at this year’s Business of Craft Beer event hosted by BC Business by addressing many of the challenges our local industry is facing. The one-day affair, held at the Vancouver convention centre, featured a wide range of panel discussions including lessons on distribution, manufacturing challenges, industry trends, and even a unique look into the environmental impact the craft beer industry has on our city.

Stand out

Business owners are now looking at ways to stand out amongst their competitors by making more environmentally sustainable decisions about beer production and even developing innovative delivery and manufacturing solutions that can help them to service their markets.

“Everybody in B.C. wants to see craft beer now. It used to be a pretty Vancouver centric kind of idea. Now we are seeing people asking for deliveries in areas like Dawson Creek and even Prince Rupert,” says Dennis Slater, Supply Chain Manager at Granville Island Brewing.

While there is no doubt that B.C.’s love affair with craft beer is rising, the fact that there are an increasing number of businesses in a somewhat centralized region might make for a challenging market moving forward.

Panellist Geoff Barlow from Container World cites having a system in place that can deal with the wide range of issues that are faced in the beer business as integral to the success or failure of a new brewer. Keeping track of transport costs, inventory levels, and even making sure restaurants and bars are properly rotating kegs adds to the challenges of getting started in the craft beer business.

Location, location, location

“I think a really key consideration made by people looking to open up a brewery is finding the right location. So much of the business of craft breweries is built on fitting into a community, meeting community needs, and meeting customers first,” says Carlo Mendes, an associate at the law firm, Richards Buell Sutton.

The need for larger industrial spaces that can facilitate production and distribution, alongside having the ability to open up a tasting room, makes location one of the most important decisions a brewer will make when starting up. If a new brewer finds a location where they might be able to build a tasting room, options for production can sometimes be limited – especially as real estate prices continue to rise.

With that in mind, the further a company decides to ship its beer, the higher the cost. It is for this reason, that we are seeing a growing number of new craft breweries opening up in popular neighbourhoods off of Main Street and Chinatown.

“If you can build a strong community that supports your brand, the least distance you need to travel, the more margin you are going to make,” says Mike Macquisten from Direct Tap.