Last Friday, when I read the media release from Rich Coleman's office announcing changes to BC liquor laws, I felt proud to know that CAMRA Vancouver had a hand in bringing those changes about.
CAMRA members, you may not realize it, but we, as a consumer advocacy group, did play a role in educating politicians about the issues and did put pressure on the government to make these changes regarding both tied houses and the on-site tasting room-lounge consumption areas. These changes specifically benefit craft beer consumers and they were issues that were particularly targeted by your executive over the past few years. We may not have been the major players that helped prompt these changes, but I, as a past president can tell you we were definitely in the mix.
Although every member may not have played a direct role, or even known what was going on with the executive in regards to advocacy, they did play an indirect role in that CAMRA Vancouver was able to state to both government and bureaucratic officials in various communications that we were representing a group of concerned consumers that numbered close to 800 members. As such a large group, and one that continues to grow and expand, those in positions that can make decisions to effect change have to pay more attention. Your support and membership in CAMRA Vancouver gives those advocating on behalf of your consumer rights more strength, legitimacy and power.
Our voice in regards to tied houses was heard loud and clear, starting with then President Martin Williams's letter to the Liquor Control and Licensing Branch in Feb/11 voicing CAMRA's concerns about completely deregulating tied house and trade practice laws.
Myself and former CAMRA Vancouver VP, Dieter Friesen, took CAMRA's concerns forward again about a year later to then alcohol critic, NDP MLA Shane Simpson. That meeting led to CAMRA Vancouver arranging for Shane to tour three breweries in his riding to meet with brewery representatives and talk about their concerns and what changes would benefit their businesses. One of the topics that was discussed was tied house rules and how having some sort of controlled-limited tied house opportunities for some small breweries would be beneficial for businesses and consumers alike.
This original meeting and tour led to Mr Simpson raising the subject of tied house restrictions in the BC Legislature bringing the issue to the attention of Rich Coleman, minister responsible for LCLB/LDB. CAMRA Vancouver then arranged a second meeting with Mr Simpson and players in the local craft beer industry to again discuss pushing for some modifications to the tied house laws. The tasting lounge, on-site consumption issues was also discussed at this meeting. Mr Simpson once again wrote a letter to the LCLB querying as to what was being done in regards to tied houses and pushing for limited allowances for tied houses to exist.
CAMRA Vancouver has also been liaising with other advocacy groups such as Modernize Wine and The Campaign for Culture and these meetings were very informative as all three groups were able to share information and coordinate on issues where we have common concerns such as tied house deregulation. We were looking at moving forward together to some degree, but that need, in regards to tied houses was nullified by last Friday's announcement.
In regards to the on-site consumption and lounge laws, CAMRA Vancouver did play an active role in contacting many craft breweries to help them coordinate and encourage them to write the LCLB when the call went out for consultation last June. This coordination helped prompt a huge response from the industry which led to the government making the changes to bring breweries and distilleries in line with wineries in regards to on-site consumption opportunities. Pushing to get the craft beer consumer and the craft beer industry the same rights and freedoms that the wine consumer and industry enjoy has been something CAMRA Vancouver has been hammering away at in communications with the LCLB and the Liberal Government. This one change to the law gives me hope that if CAMRA Vancouver, CAMRA BC and the CAMRA membership keep advocating for the same rights, freedoms and privileges that wine consumers enjoy, one day corkage for beer and inter-provincial importation of Canadian craft beer, with no provincial markup on cost, will be allowed as it is for wine consumers.
CAMRA BC and CAMRA Vancouver were also among the throngs protesting about the proposed privatization of the LDB warehouses. Letters were sent to many Liberal politicians and to the LCLB voicing our concerns about how the move may negatively impact consumers. I was asked to appear twice on CKNW radio to represent CAMRA and talk about these concerns as well, raising awareness as to how this move may be bad for consumers. As you all know, the government eventually trashed the idea to privatize and backed away. The huge outcry and protest from various groups, including CAMRA, the only group speaking on behalf of the craft beer consumer, played a major role in the privatization idea being abandoned.
Be proud CAMRA members, we have accomplished a lot the past few years. I have no illusions that we have been solely responsible for any of these positives changes as there have been many different groups lobbying the government both publicly and behind closed doors, but I do believe 100% our group has contributed to the push towards reforming our outdated liquor laws. Continued CAMRA growth will bolster numbers and provide CAMRA Vancouver and CAMRA BC with more money to educate and advocate and continued-increased support of our executive will help CAMRA Vancouver be more successful in their quest to protect the rights of craft beer consumers.
Because at its core, that is what CAMRA is all about: educating about craft beer and advocating on behalf of craft beer consumers. We are more than just a beer drinking club and whether you realize it or not, by supporting CAMRA Vancouver, you are making a difference and are apart of the solution.
Just think about what a difference we can make as an organization if we as members all commit to being more engaged, to answering our executives call to support campaigns, participate in social media blitzes and get more involved. It only takes minutes to make your voice heard and the more voices heard by the government, the more they are likely to listen.
Tuesday, February 12, 2013
Friday, February 8, 2013
Gov't Announces Liquor Law Changes That Could Benefit Craft Beer Consumers & Industry
Today, Rich Coleman, the minister responsible for the province's alcohol portfolio, announced some long anticipated changes to BC liquor laws, many of which have a direct impact on the craft beer industry and craft beer related licensees.
In a press release issued today from Coleman's office, these are the changes I see as having the most impact on the craft beer consumer:
My assumption is that they mean breweries who produce less than 160,000 Hectolitres per year, which means the big boys like Molson and Labatt cannot have tied houses. What is yet to be seen is whether Granville Island, owned by Molson, will be able to have three tied house arrangements, thereby giving Molson a way through the door. But even if this is the case, the press release goes on to explain that tied houses must also "carry a variety of products from different suppliers to avoid particular products being favoured," meaning they cannot shut out the competition in these licensed establishments.
Another question I have is how is how difficult are the government going to make it for breweries to have on-site beer lounges, which are essentially liquor primary licenses. Does that mean over-19 years old allowed only? What hoops will the brewery have to jump to get these licenses? This is the most significant of all the changes for craft breweries, in my opinion as now small nano-style breweries can operate and exist without ever having to distribute their beer. Growler fills and bottle sales from the tasting room-lounge combined with lounge revenue could be enough for these smaller breweries, with no plan to expand, to exist. This is, as far as I understand, the business model for Brassneck Brewery, who, under the new laws, could also offer their products at the Alibi Room due to the tied house law changes (Brassneck and the Alibi both have Nigel Springthorpe involved in ownership).
I am going to dig more and talk a bit more about how these changes could impact the craft beer scene come March 1, 2013 after I do some digging and reflecting on the announcement. As with everything announced by this government, I will wait until the fine print is produced to see just exactly these changes mean. The BC Liberals have a habit of making announcements that look to be making big changes to liquor laws when in fact, they are little more than tweaks and minor adjustments when the full extent of the changes are understood.
In a press release issued today from Coleman's office, these are the changes I see as having the most impact on the craft beer consumer:
- "Small- and medium-sized liquor manufacturers" to have "three common ownership and business relationships with licensed establishments located off their manufacturing site." Translation, tied house laws have been relaxed and you will soon be able to enjoy Parallel 49 beers at St Augustine's come March 1/13.
- ""Brewers and distillers now can apply to have an on-site consumption area such as a lounge, tasting room or event area." Translation, beer lounges at breweries are not far off.
- "Rules around how liquor manufacturers can promote their products in bars and restaurants have been simplified by removing the requirement for a buy-sell agreement." Translation, breweries can now buy tap and shelf space legally and bars restaurants will be able to demand inducements for the right for a brewery to sell their product via the licensee.
My assumption is that they mean breweries who produce less than 160,000 Hectolitres per year, which means the big boys like Molson and Labatt cannot have tied houses. What is yet to be seen is whether Granville Island, owned by Molson, will be able to have three tied house arrangements, thereby giving Molson a way through the door. But even if this is the case, the press release goes on to explain that tied houses must also "carry a variety of products from different suppliers to avoid particular products being favoured," meaning they cannot shut out the competition in these licensed establishments.
Another question I have is how is how difficult are the government going to make it for breweries to have on-site beer lounges, which are essentially liquor primary licenses. Does that mean over-19 years old allowed only? What hoops will the brewery have to jump to get these licenses? This is the most significant of all the changes for craft breweries, in my opinion as now small nano-style breweries can operate and exist without ever having to distribute their beer. Growler fills and bottle sales from the tasting room-lounge combined with lounge revenue could be enough for these smaller breweries, with no plan to expand, to exist. This is, as far as I understand, the business model for Brassneck Brewery, who, under the new laws, could also offer their products at the Alibi Room due to the tied house law changes (Brassneck and the Alibi both have Nigel Springthorpe involved in ownership).
I am going to dig more and talk a bit more about how these changes could impact the craft beer scene come March 1, 2013 after I do some digging and reflecting on the announcement. As with everything announced by this government, I will wait until the fine print is produced to see just exactly these changes mean. The BC Liberals have a habit of making announcements that look to be making big changes to liquor laws when in fact, they are little more than tweaks and minor adjustments when the full extent of the changes are understood.
Monday, February 4, 2013
Help Feed Vancouver's Hungry by Drinking Craft Beer!!
In support of the Vancouver Food Bank, and as a thank-you for the support of local craft beer consumers, Liberty Wine Merchants of Commercial Drive is organizing the "Inaugural East Side Beer Fest", March 20th, 7pm to -9pm, at East Vancouver's WISE Hall, located at the corner of Victoria Drive and Adanac Street.
Admission is $20, with tickets currently available at all Liberty Wine Merchant locations, and a non-perishable food item for the Food bank, to be dropped off at the event. The event is described as "self-guided" and the tasting is included in the entry price meaning no tickets or tokens need to be purchased inside the event!
"This is our way of giving back to the community that has supported us through our first year on Commercial Drive," wrote Liberty Commercial Drive Manager, William Ford in an email to VEBB. "We have been very fortunate to be embraced as part of the community and this event is our way of showing our gratitude to our patrons and neighbours."
Driftwood, Parallel 49, Howe Sound, Lighthouse, Mill St., Propeller, Beerthirst, Copper & Theory, Beverage Concepts and BrewDog have been confirmed with more participants to be announced. There will be a few local, artisan food booths in attendance and hopefully, if things go to plan, one whiskey booth, although nothing has yet been confirmed as to who the whiskey vendor will be.
You may be wondering why a store known for selling wine is organizing a beer festival. If you have not been into the Commercial Drive location, and you love craft beer, you should pop your head in the door.
"Beer has been chosen because we have noticed that east side residents are passionate about beer and, more specifically, passionate about craft, artisanal ales," stated Ford. "We listen to our patrons and try to work together with them to offer the best service and selection we can."
It is my local bottle shop and I am never disappointed with the great beer selection when I go in. Within weeks of opening, this Liberty location had already put together a great inventory of craft beers, with a particular focus on Belgian beers. Ford, like all Liberty managers, has been given the leeway to tailor his stock to local tastes. I actually selfishly hesitated about writing this post as I would love to keep Liberty the hidden secret that it is where I can often find the limited releases, for decent prices, that local beer nuts scour the city in search of, after they have disappeared from the shelves of other stores.
"What's unique about Liberty Wine Merchants is that each store has it's own personality that is shaped by the demands of their demographic as well as the workers in that store," says Ford. "Commercial Drive has noticed our craft beer selection has been a hit over the past year so we decided to host a charitable tasting event with that focus."
Prices are also very reasonable at Liberty compared to some other liquor retail outlets. Because they are located just a block or so from the government liquor store, Liberty has to be competitive.
"We want people to know that we work tirelessly to hunt down the best values in the market and I think our prices reflect that," reports Ford. "A testament to that would be that all of the government-store listed items will be on our shelves for less than a loonie more. This is a good reason why we are the #1 LRS for the Central City Red Racer IPA."
Hopes are that this festival will be a success and turn into an annual event which will allow Liberty thank their supporters while giving back to those in need in the community. At $20 plus a non-perishable food item as the admission cost, it is a great deal and helps support those less fortunate in our community by helping them put food on their table.
Seems like a win-win situation to me.
Tuesday, January 29, 2013
How A Craft Brewery Inspired a Small Town
Sometimes those of us who live in the Greater Vancouver and South Vancouver Island areas take it for granted we can get craft beer almost everywhere these days. I am more often than not pleasantly surprised to find at least one or two good beers on offer as a result of the craft beer craze. It seems that most licensees in these areas have finally clued in that craft beer drinkers have money, will spend it and will specifically seek out and support licensees that offer good beer.
But for the majority of BC beer drinkers the reality is that fizzy, almost-tasteless, macro-brewery lagers, not to be confused with small-batch, craft lagers, still rule the roost and despite the fact that domestic craft beer sales are increasing constantly in the province and now have approximately 15% of the market share, the majority of those craft beer sales are concentrated in the Greater Vancouver and Victoria areas. The boundaries of the craft beer-friendly areas are expanding slowly but most rural and isolated areas are still devoid of good beer and when I head out of town I still carry my small vial of hop oil with me just in case I find myself in a craft-beer-free zone.
A few years back, good friends of mine, Bernie and Debbie, moved to one such community where commercially produced craft beer was virtually non-existent. Powell River, due to its geography, is a difficult place for small craft breweries to distribute to therefore few, if any, had attempted to break into the market in the area known as the Upper Sunshine Coast. The big breweries were uncontested except for a few craft beer offerings in the liquor stores.
To give you a little bit of a back story, Bernie and Debbie are from from England and Bernie, an early supporter and member of CAMRA UK in the 1970's, is an avid real ale lover and has been drinking real ale for, well, lets just says decades. When Bernie first moved from England to Squamish seven years ago, he baffled the realtor when he said he wanted pubfront property, not oceanfront or lakefront property like everyone else. He made the same request and got the same baffled expression from the realtor when moving to scenic Powell River a few years ago but he and Debbie managed to find a beautiful home just down the road from a wee neighbourhood pub called the Red Lion.
Unfortunately, this pub, like all pubs in Powell River at that time, had no real ale or craft beer. To help make the beer that was on offer palatable, Bernie used to have a small whisk on a lanyard which he took to the pub and he would vigorously whisk his fizzy lager to get rid of some of the unnecessary carbonation, much to the amusement of the pub staff and other patrons. The practice, which Bernie started when he could not find craft beer options in Squamish, caught on with some as they found Bernie's small trick actually helped make the beer more drinkable.
Last year, Bernie and other craft beer lovers who live in the Powell River area were able to put their whisks away when Townsite Brewing opened their doors and began supplying the area with a locally- brewed, craft beer alternatives to mainstream lagers. Townsite made their first keg deliveries in March, 2012 and in less than a year they have changed the local beer scene. Townsite beer is virtually everywhere. Locals like Bernie and his friends have embraced the craft beer option with open arms.
This immediate acceptance of craft beer in Powell River has even surprised Townsite owner Karen Skadsheim who had some idea that craft beer was well overdue on the Upper Sunshine Coast, but who admittedly may have under-estimated just how much locals desired options in regards to beer.
"I have to confess that I was surprised at how quickly people around here took to it," wrote Skadsheim in an email to VEBB. "I knew there were craft beer lovers in Powell River, but I fully expected a learning curve for most folks and sure, lots of people didn't know what craft beer was but as soon as you explained it and gave them a taste, they were converted. We got a lot of people, often, it must be said, women, who said 'I don't like beer, but I like this'."
I saw first-hand how excited locals are about having access to good beer when I went up to Powell River a few weekends ago to visit Bernie, Debbie and attend the Craft Beer Tap Takeover at the Red Lion. The event was sold out as local craft beer lovers paid $10 a ticket to get in to sample beers from Driftwood, Howe Sound, Parallel 49, Tofino Brewing and of course Townsite. It was a great event and most of the kegs were drained that night by the enthusiastic crowd who were ready to party. There were many who had never heard of the out-of-town breweries and a few who didn't find the craft beers to their liking, prompting them to switch to mainstream lagers, but I can say that I have seen that here in craft-beer crazy Vancouver at the Railway Club where, during a CAMRA Vancouver Harvestfest, I saw a few Railway regulars ignore the cask beers on offer and go straight to their usual bottles of mainstream swill.
There is no accounting for good taste, or lack thereof, I guess.
Even more impressive than the sold out Tap Takeover was the fact that the next night the Invitational Brewers' Dinner, a food-beer pairing event featuring some of the same breweries, sold 54 tickets, at $50 a pop, exceeding their capacity of 50 people. I know this is commonplace here in Vancouver but you have to remember that there was virtually no craft beer, if any, in Powell River only one year ago and events such as the tap takeovers and beer-food pairing dinners are definitely not the norm and how they would be accepted was an unknown to organizers.
According to the Sunshine Coast-Powell River NDP MLA Nicholas Simons, Townsite Brewing has done more than just offer great beer to locals. While we were guests chatting about craft beer and liquor laws on CJMP FM Community Radio's "Every Day is Like Sunday" radio show, Simons told me off-air that the brewery's success has been "an inspiration" to many in the Powell River business community and has shown others that a small, unique business can succeed, flourish and grow in area. He stated residents are "proud" of the brewery and how they have been able to become an integral member of the community while putting Powell River on the craft beer map.
One way Townsite have endeared themselves to locals has been their practice of donating $1 for every growler sold to different charitable organizations in the area.
"Because growlers are such a local thing, we decided to keep some of that money helping the community," wrote Skadsheim. "I am very proud to say that in just eight months of growler sales, we've given more than $6000 to help groups like The Powell River Food Security Project, The ORCA Bus, Skookum Food Cooperative, CJMP Community Radio, The Bruce Denniston Bone Marrow Society and many others," wrote Skadsheim.
The success of the growler sales and the amount of money Townsite has been able to donate to charities is also a bit of a shock to Skadsheim.
"As with craft beer in general, I thought growlers would be a learning curve and sure, not many knew what they were before we opened our doors but as soon as we explained growlers, everyone said 'What a great idea! I'll take two'," she said. Luckily for her she had read an article by Joe Wiebe which mentioned the success of the Tofino Brewery's growler sales so she doubled her order of growlers before starting sales.
All of this community pride and acceptance of craft beer warms my heart as I am looking to locate my family up in Powell River sooner than later. Knowing that I will not have to take a supply of hop oil with me, or not have to purchase a small whisk, makes the decision to head to a small town that much more easier.
And knowing there are a growing number of craft beer enthusiasts and characters like Bernie up there means I will not have to look far to find like-minded people and stay wired into the BC craft beer community. I think the community of Powell River is ready to expand to craft beers from other breweries as the local beer lovers are obviously showing a desire to branch out and deserve access to more of the great beers brewed here in BC. Townsite has blazed the trail and established themselves as the local favourites, who the locals will support loyally, now it is ready for others to follow. Who knows, you may even see a CAMRA Powell River branch pop up before the end of the year with yours truly in the mix if my family does indeed relocate there.
You know I won't be able to resist...
But for the majority of BC beer drinkers the reality is that fizzy, almost-tasteless, macro-brewery lagers, not to be confused with small-batch, craft lagers, still rule the roost and despite the fact that domestic craft beer sales are increasing constantly in the province and now have approximately 15% of the market share, the majority of those craft beer sales are concentrated in the Greater Vancouver and Victoria areas. The boundaries of the craft beer-friendly areas are expanding slowly but most rural and isolated areas are still devoid of good beer and when I head out of town I still carry my small vial of hop oil with me just in case I find myself in a craft-beer-free zone.
A few years back, good friends of mine, Bernie and Debbie, moved to one such community where commercially produced craft beer was virtually non-existent. Powell River, due to its geography, is a difficult place for small craft breweries to distribute to therefore few, if any, had attempted to break into the market in the area known as the Upper Sunshine Coast. The big breweries were uncontested except for a few craft beer offerings in the liquor stores.
To give you a little bit of a back story, Bernie and Debbie are from from England and Bernie, an early supporter and member of CAMRA UK in the 1970's, is an avid real ale lover and has been drinking real ale for, well, lets just says decades. When Bernie first moved from England to Squamish seven years ago, he baffled the realtor when he said he wanted pubfront property, not oceanfront or lakefront property like everyone else. He made the same request and got the same baffled expression from the realtor when moving to scenic Powell River a few years ago but he and Debbie managed to find a beautiful home just down the road from a wee neighbourhood pub called the Red Lion.
Unfortunately, this pub, like all pubs in Powell River at that time, had no real ale or craft beer. To help make the beer that was on offer palatable, Bernie used to have a small whisk on a lanyard which he took to the pub and he would vigorously whisk his fizzy lager to get rid of some of the unnecessary carbonation, much to the amusement of the pub staff and other patrons. The practice, which Bernie started when he could not find craft beer options in Squamish, caught on with some as they found Bernie's small trick actually helped make the beer more drinkable.
Last year, Bernie and other craft beer lovers who live in the Powell River area were able to put their whisks away when Townsite Brewing opened their doors and began supplying the area with a locally- brewed, craft beer alternatives to mainstream lagers. Townsite made their first keg deliveries in March, 2012 and in less than a year they have changed the local beer scene. Townsite beer is virtually everywhere. Locals like Bernie and his friends have embraced the craft beer option with open arms.
One story that is told in the Red Lion Pub that illustrates how much some of the locals have taken to craft beer is that one evening when Bernie and his friends were having a few jars the keg of Townsite beer blew. The pub owner told them they would have no more Townsite on tap until delivery the next day. Whiskless and in horror that they might have to switch to a less desirable macro-lager, Bernie's pal Don took matters into his own hands, phoned up the brewery to see if they could help out and about 10 minutes later a keg of Townsite Suncoast arrived prompting Bernie and Don to get on their hands and knees to bow down and worship the arriving keg as it was wheeled into the pub.
This immediate acceptance of craft beer in Powell River has even surprised Townsite owner Karen Skadsheim who had some idea that craft beer was well overdue on the Upper Sunshine Coast, but who admittedly may have under-estimated just how much locals desired options in regards to beer.
"I have to confess that I was surprised at how quickly people around here took to it," wrote Skadsheim in an email to VEBB. "I knew there were craft beer lovers in Powell River, but I fully expected a learning curve for most folks and sure, lots of people didn't know what craft beer was but as soon as you explained it and gave them a taste, they were converted. We got a lot of people, often, it must be said, women, who said 'I don't like beer, but I like this'."
I saw first-hand how excited locals are about having access to good beer when I went up to Powell River a few weekends ago to visit Bernie, Debbie and attend the Craft Beer Tap Takeover at the Red Lion. The event was sold out as local craft beer lovers paid $10 a ticket to get in to sample beers from Driftwood, Howe Sound, Parallel 49, Tofino Brewing and of course Townsite. It was a great event and most of the kegs were drained that night by the enthusiastic crowd who were ready to party. There were many who had never heard of the out-of-town breweries and a few who didn't find the craft beers to their liking, prompting them to switch to mainstream lagers, but I can say that I have seen that here in craft-beer crazy Vancouver at the Railway Club where, during a CAMRA Vancouver Harvestfest, I saw a few Railway regulars ignore the cask beers on offer and go straight to their usual bottles of mainstream swill.
There is no accounting for good taste, or lack thereof, I guess.
Even more impressive than the sold out Tap Takeover was the fact that the next night the Invitational Brewers' Dinner, a food-beer pairing event featuring some of the same breweries, sold 54 tickets, at $50 a pop, exceeding their capacity of 50 people. I know this is commonplace here in Vancouver but you have to remember that there was virtually no craft beer, if any, in Powell River only one year ago and events such as the tap takeovers and beer-food pairing dinners are definitely not the norm and how they would be accepted was an unknown to organizers.
According to the Sunshine Coast-Powell River NDP MLA Nicholas Simons, Townsite Brewing has done more than just offer great beer to locals. While we were guests chatting about craft beer and liquor laws on CJMP FM Community Radio's "Every Day is Like Sunday" radio show, Simons told me off-air that the brewery's success has been "an inspiration" to many in the Powell River business community and has shown others that a small, unique business can succeed, flourish and grow in area. He stated residents are "proud" of the brewery and how they have been able to become an integral member of the community while putting Powell River on the craft beer map.
One way Townsite have endeared themselves to locals has been their practice of donating $1 for every growler sold to different charitable organizations in the area.
"Because growlers are such a local thing, we decided to keep some of that money helping the community," wrote Skadsheim. "I am very proud to say that in just eight months of growler sales, we've given more than $6000 to help groups like The Powell River Food Security Project, The ORCA Bus, Skookum Food Cooperative, CJMP Community Radio, The Bruce Denniston Bone Marrow Society and many others," wrote Skadsheim.
The success of the growler sales and the amount of money Townsite has been able to donate to charities is also a bit of a shock to Skadsheim.
"As with craft beer in general, I thought growlers would be a learning curve and sure, not many knew what they were before we opened our doors but as soon as we explained growlers, everyone said 'What a great idea! I'll take two'," she said. Luckily for her she had read an article by Joe Wiebe which mentioned the success of the Tofino Brewery's growler sales so she doubled her order of growlers before starting sales.
All of this community pride and acceptance of craft beer warms my heart as I am looking to locate my family up in Powell River sooner than later. Knowing that I will not have to take a supply of hop oil with me, or not have to purchase a small whisk, makes the decision to head to a small town that much more easier.
And knowing there are a growing number of craft beer enthusiasts and characters like Bernie up there means I will not have to look far to find like-minded people and stay wired into the BC craft beer community. I think the community of Powell River is ready to expand to craft beers from other breweries as the local beer lovers are obviously showing a desire to branch out and deserve access to more of the great beers brewed here in BC. Townsite has blazed the trail and established themselves as the local favourites, who the locals will support loyally, now it is ready for others to follow. Who knows, you may even see a CAMRA Powell River branch pop up before the end of the year with yours truly in the mix if my family does indeed relocate there.
You know I won't be able to resist...
Monday, January 14, 2013
A Look Forward to 2013
Now that 2012 is in the rear view mirror it is time to start looking forward to see what is in store for 2013 for the BC craft beer consumer. The past few years has seen the BC craft beer scene explode but I believe that what has transpired has just been the warm-up for the main event which will totally change the craft beer landscape here in BC over the next few years.
Okay, I will now put on my funny wizard hat, look into my crystal ball and channel my inner Amazing Kreskin to see what is in store for 2013 for BC craft beer consumers with a special focus on the Vancouver area as that is where I am based...
Changes to Laws in the Works
As I announced a few weeks back, it looks like the tied house and trade practice laws are going to be erased from the books and according to the intel I am getting, these changes are happening ASAP. How these changes, if they do indeed occur, impact the craft beer consumer is a point of heavy debate among those involved in the craft beer industry.
Tied Houses: In one camp there are those who believe allowing alcohol producers (i.e. breweries, wineries and distilleries) to also own distribution points (i.e liquor stores, pubs, clubs, restaurants) will allow for deep pocketed producers to buy up distribution and sell only their own product limiting the smaller, less financially able manufacturer from being able to get their products to their adoring public. In the other camp, some believe that by eliminating the tied house laws, consumers will have greater choices, especially in smaller markets, as manufacturers will then have the opportunity to create their own places to sell their wares and licensees will have the opportunity to get into the manufacturing game, producing unique alcoholic treats for their establishments.
Trade Practices: Again, there is one camp that believes that giving deep pocketed alcohol manufacturers the chance to basically buy shelf and tap space or allowing licensees to sell tap and/or shelf space to the highest bidder will cut down on consumer choice as money will dictate selection, not consumer desire-demand. Some also say this practice will drive up prices as manufacturers are forced to pay licensees for the right to sell their products. Others believe that changing these types of laws will have no impact because bribery is alive and well and a common practice here in BC.
To be perfectly honest, these laws (both tied house and trade practice but more so the latter) are being ignored and regularly circumvented in the BC beer industry so it is hard to say if making these common practices legit will really impact things. I think here in the big city, where craft beer has a strong hold, we will not see much change, but deregulating may stop to craft beer craze from growing as quickly in the smaller markets.
Another change to the liquor laws I think we are likely to see sooner than later is one that will allow breweries and distilleries to have licensed lounges and special events areas similar to those that wineries have been allowed for years.You can read about the proposed changes here. These changes are being highly anticipated by many and should allow for a lot more opportunity for craft breweries to market themselves and offer their beers right on-site. It will also allow for smaller, nano-style breweries to operate both in the bigger urban centres and smaller communities without having to worry about packaging or getting their beer to vendors. It might be time to start looking for growler companies to invest in as I think the current growler market, which Barley Mowat writes about here, is going to take off and explode.
But without a doubt the biggest event in 2013 that will influence whether there are major changes in store for the craft beer consumers of BC is the Provincial Election, slated for May 14, 2013. If the current popularity polls are accurate, it looks like we are in for a change of government with the NDP Party taking the reigns for the next four years. I have heard both personally from a contact high up in the NDP party and from another source who also has NDP contacts, that if elected, the NDP will be looking at reviewing BC liquor laws. Whether this is a major review, which could result in widespread changes to laws that are hindering consumer choice, restricting consumer access, inflating alcohol prices, not supporting the growth of the craft beer industry and generally stifling good times, or just a few tweaks here and there, such as we are currently seeing with the Liberals, is yet to be seen. From what I am hearing now, pre-election, is that the NDP may be looking at a major review and fix of our broken alcohol system. I don't expect them to make that promise publicly, as it is a big one to keep, but lets keep our fingers crossed and hope that they truly have been listening to the BC public and have not just been spouting rhetoric in attacking the Liberals for not making these much-needed changes.
Breweries
A sign of how healthy the craft beer industry is here in BC is the seven craft breweries that opened their doors in 2012, five of those in the Greater Vancouver area, according to Thirsty Writer Joe Wiebe's recent Urbandiner.ca article . Joe is wired into this type of thing through his constant research on BC breweries so I am going to go out on a limb and say his list is fairly inclusive.
The upcoming year looks to see even more craft breweries open their doors in BC. By my count, there are 10, seven in the Greater Vancouver area, who have announced plans to open and I know of at least four more that are in the planning stages, including the proposed brewpub or brewery at UBC. That estimate could be conservative as I am not as in the know about things that are happening outside of The Lower Mainland-Greater Vancouver and the South of Vancouver Island.
As well, many existing breweries are also expanding their brewing capacity to keep up with demands. Central City, Red Truck and Steamworks are all in the process of building new, bigger facilities. Driftwood has just gone through an expansion at their present sight that has increased production and Parallel 49, who opened last Spring, seem to be in a constant state of expansion to keep up with the demands for their beer. I know Townsite Brewing, in Powell River, is currently installing new fermenters, which will help them keep up with demand and the list goes on and on as to who is growing and expanding. And to make sure that all this increased beer production makes it to market, I have noticed that many of the craft breweries are increasing their sales and marketing teams and attempting to enlarge their distribution areas. This is great news for those craft beer lovers who live outside the craft beer hubs of Vancouver and Victoria. Lets hope these breweries pushing the borders of the craft beer market are successful in spreading the love.
What does all this mean...well, by the end of 2013 we should have much more production of some of the great beers we already love, meaning less shortages of the most popular brews and possibilities for these breweries to expand their distribution and sales. And with the new breweries up and running we will see new beers on the market competing for your craft beer dollar and, judging by the people I know who are getting involved in the brewing end of the industry, there are going to be some great new beers available in the market competing with the already great selection of BC craft beers.
Restaurants and Pubs
It seems everywhere you go these days, at least here in Vancouver, there is at least a few craft beer options on the menu. Rarely now do I need to produce my small bottle of hop oil to tart up my macro-beer because almost everywhere I go I can find decent beer. I was even in the lounge of the Hotel Vancouver the other day and found several Phillips and Driftwood beers on the bottle list. This is great news for consumers and I do not think this trend will slow down as business folks continue to clue in that craft beer drinkers are everywhere, have money and are willing to part with it while out on the town.
In Vancouver, the two most anticipated openings for me are the Craft Beer Market, to be located in the Salt Building at 85 W 1st Ave in the Olympic Village, shouting distance from The Tap & Barrel, the Daniel Hospitality Group's (DHG) dynamite False Creek BC craft beer hangout. The Craft Beer Market is planning on having 140 taps of draft, many of the craft variety and the DHG are planning on opening a second Tap & Barrel location near the Vancouver Convention Centre, complete with another massive patio and I am told more great BC craft beers on tap.
Advocacy
The last few years has seen CAMRA Vancouver really raise their game and their profile and I do not see this trend slowing down. I spoke briefly with newly elected President Adam Chatburn at CAMRA Van's AGM and he seemed to speak my language and quickly convinced me he wants to keep on fighting the good fight and keep CAMRA focused on pushing their advocacy and education agendas. This is great news for local craft beer consumers as this upcoming year could be CAMRA's big coming out party if they can manage to get themselves to the table if the NDP do get elected and do commit to a review of liquor laws.
I have also heard rumblings that the BC Craft Brewer's Guild is possibly looking at revitalizing and getting more active and focused. I have long said it is essential that the industry get organized and advocate and lobby hard for themselves in order to get the same treatment that the wine industry does and I really do hope that the rumours I am hearing are true and that we do get a more active and comprehensive craft beer, industry-oriented association because a strong craft beer industry means more growth, which should translate into more selection and more access for consumers.
With all these positive things in the works I believe it is going to be a banner year for the BC craft beer lover. As I said at the opening of this post, I think the explosion we have seen in regards to craft beer locally is nothing compared to what is going to happen over the next few years. Exciting times to be a craft beer lover here in BC!!
Okay, I will now put on my funny wizard hat, look into my crystal ball and channel my inner Amazing Kreskin to see what is in store for 2013 for BC craft beer consumers with a special focus on the Vancouver area as that is where I am based...
Changes to Laws in the Works
As I announced a few weeks back, it looks like the tied house and trade practice laws are going to be erased from the books and according to the intel I am getting, these changes are happening ASAP. How these changes, if they do indeed occur, impact the craft beer consumer is a point of heavy debate among those involved in the craft beer industry.
Tied Houses: In one camp there are those who believe allowing alcohol producers (i.e. breweries, wineries and distilleries) to also own distribution points (i.e liquor stores, pubs, clubs, restaurants) will allow for deep pocketed producers to buy up distribution and sell only their own product limiting the smaller, less financially able manufacturer from being able to get their products to their adoring public. In the other camp, some believe that by eliminating the tied house laws, consumers will have greater choices, especially in smaller markets, as manufacturers will then have the opportunity to create their own places to sell their wares and licensees will have the opportunity to get into the manufacturing game, producing unique alcoholic treats for their establishments.
Trade Practices: Again, there is one camp that believes that giving deep pocketed alcohol manufacturers the chance to basically buy shelf and tap space or allowing licensees to sell tap and/or shelf space to the highest bidder will cut down on consumer choice as money will dictate selection, not consumer desire-demand. Some also say this practice will drive up prices as manufacturers are forced to pay licensees for the right to sell their products. Others believe that changing these types of laws will have no impact because bribery is alive and well and a common practice here in BC.
To be perfectly honest, these laws (both tied house and trade practice but more so the latter) are being ignored and regularly circumvented in the BC beer industry so it is hard to say if making these common practices legit will really impact things. I think here in the big city, where craft beer has a strong hold, we will not see much change, but deregulating may stop to craft beer craze from growing as quickly in the smaller markets.
Another change to the liquor laws I think we are likely to see sooner than later is one that will allow breweries and distilleries to have licensed lounges and special events areas similar to those that wineries have been allowed for years.You can read about the proposed changes here. These changes are being highly anticipated by many and should allow for a lot more opportunity for craft breweries to market themselves and offer their beers right on-site. It will also allow for smaller, nano-style breweries to operate both in the bigger urban centres and smaller communities without having to worry about packaging or getting their beer to vendors. It might be time to start looking for growler companies to invest in as I think the current growler market, which Barley Mowat writes about here, is going to take off and explode.
But without a doubt the biggest event in 2013 that will influence whether there are major changes in store for the craft beer consumers of BC is the Provincial Election, slated for May 14, 2013. If the current popularity polls are accurate, it looks like we are in for a change of government with the NDP Party taking the reigns for the next four years. I have heard both personally from a contact high up in the NDP party and from another source who also has NDP contacts, that if elected, the NDP will be looking at reviewing BC liquor laws. Whether this is a major review, which could result in widespread changes to laws that are hindering consumer choice, restricting consumer access, inflating alcohol prices, not supporting the growth of the craft beer industry and generally stifling good times, or just a few tweaks here and there, such as we are currently seeing with the Liberals, is yet to be seen. From what I am hearing now, pre-election, is that the NDP may be looking at a major review and fix of our broken alcohol system. I don't expect them to make that promise publicly, as it is a big one to keep, but lets keep our fingers crossed and hope that they truly have been listening to the BC public and have not just been spouting rhetoric in attacking the Liberals for not making these much-needed changes.
Breweries
A sign of how healthy the craft beer industry is here in BC is the seven craft breweries that opened their doors in 2012, five of those in the Greater Vancouver area, according to Thirsty Writer Joe Wiebe's recent Urbandiner.ca article . Joe is wired into this type of thing through his constant research on BC breweries so I am going to go out on a limb and say his list is fairly inclusive.
The upcoming year looks to see even more craft breweries open their doors in BC. By my count, there are 10, seven in the Greater Vancouver area, who have announced plans to open and I know of at least four more that are in the planning stages, including the proposed brewpub or brewery at UBC. That estimate could be conservative as I am not as in the know about things that are happening outside of The Lower Mainland-Greater Vancouver and the South of Vancouver Island.
As well, many existing breweries are also expanding their brewing capacity to keep up with demands. Central City, Red Truck and Steamworks are all in the process of building new, bigger facilities. Driftwood has just gone through an expansion at their present sight that has increased production and Parallel 49, who opened last Spring, seem to be in a constant state of expansion to keep up with the demands for their beer. I know Townsite Brewing, in Powell River, is currently installing new fermenters, which will help them keep up with demand and the list goes on and on as to who is growing and expanding. And to make sure that all this increased beer production makes it to market, I have noticed that many of the craft breweries are increasing their sales and marketing teams and attempting to enlarge their distribution areas. This is great news for those craft beer lovers who live outside the craft beer hubs of Vancouver and Victoria. Lets hope these breweries pushing the borders of the craft beer market are successful in spreading the love.
What does all this mean...well, by the end of 2013 we should have much more production of some of the great beers we already love, meaning less shortages of the most popular brews and possibilities for these breweries to expand their distribution and sales. And with the new breweries up and running we will see new beers on the market competing for your craft beer dollar and, judging by the people I know who are getting involved in the brewing end of the industry, there are going to be some great new beers available in the market competing with the already great selection of BC craft beers.
Restaurants and Pubs
It seems everywhere you go these days, at least here in Vancouver, there is at least a few craft beer options on the menu. Rarely now do I need to produce my small bottle of hop oil to tart up my macro-beer because almost everywhere I go I can find decent beer. I was even in the lounge of the Hotel Vancouver the other day and found several Phillips and Driftwood beers on the bottle list. This is great news for consumers and I do not think this trend will slow down as business folks continue to clue in that craft beer drinkers are everywhere, have money and are willing to part with it while out on the town.
In Vancouver, the two most anticipated openings for me are the Craft Beer Market, to be located in the Salt Building at 85 W 1st Ave in the Olympic Village, shouting distance from The Tap & Barrel, the Daniel Hospitality Group's (DHG) dynamite False Creek BC craft beer hangout. The Craft Beer Market is planning on having 140 taps of draft, many of the craft variety and the DHG are planning on opening a second Tap & Barrel location near the Vancouver Convention Centre, complete with another massive patio and I am told more great BC craft beers on tap.
Advocacy
The last few years has seen CAMRA Vancouver really raise their game and their profile and I do not see this trend slowing down. I spoke briefly with newly elected President Adam Chatburn at CAMRA Van's AGM and he seemed to speak my language and quickly convinced me he wants to keep on fighting the good fight and keep CAMRA focused on pushing their advocacy and education agendas. This is great news for local craft beer consumers as this upcoming year could be CAMRA's big coming out party if they can manage to get themselves to the table if the NDP do get elected and do commit to a review of liquor laws.
I have also heard rumblings that the BC Craft Brewer's Guild is possibly looking at revitalizing and getting more active and focused. I have long said it is essential that the industry get organized and advocate and lobby hard for themselves in order to get the same treatment that the wine industry does and I really do hope that the rumours I am hearing are true and that we do get a more active and comprehensive craft beer, industry-oriented association because a strong craft beer industry means more growth, which should translate into more selection and more access for consumers.
With all these positive things in the works I believe it is going to be a banner year for the BC craft beer lover. As I said at the opening of this post, I think the explosion we have seen in regards to craft beer locally is nothing compared to what is going to happen over the next few years. Exciting times to be a craft beer lover here in BC!!
Wednesday, January 9, 2013
VEBBie Awards - VanEast Beer Blog 2012 Year in Review
The fog brought on by too many barley wines over the holidays has finally lifted and the synapses are once again firing so now is as good a time as any to look back at 2012 and hand out the first ever VEBBie Awards. The award winners have been selected by the VEBB Awards Committee, a committee made up of, well, me and like 99% of all awards given out, mean absolutely nothing in the grand scheme of things beer-related or otherwise.
The David Slays Goliath Award
The story of independent business owner Corinne Lea's battle with the LCLB in regards to the Rio Theatre and their liquor primary license set the tone for 2012. Lea applied for and was granted a liquor primary license for the Rio Theatre so they could serve alcohol at over-19, nighttime events and then was told by the LCLB she could not show movies, any time of the day or night, whether the alcohol was locked up or not, because of a decades-old, Prohibition-era law that prohibited liquor licenses in movie theatres. The ensuing public uproar at the ridiculous decision by the LCLB caused a huge backlash that saw support coming from NDP MLA Jenny Kwan, Vancouver City Council, the media, CAMRA Vancouver and thousands of angry citizens and eventually led to the provincial alcohol portfolio being passed from Shirley Bond to Rich Coleman who, after dragging his feet and screwing around with half-measure solutions, did the right thing and allowed for alcohol licenses in movie theatres but not before making Lea suffer due to having her business basically closed down for several weeks.
Things That Make You Go Hmmm Award
This award, hands down goes to the post I wrote entitled "Politics Make Strange Bedfellows" which saw VEBB break the story that the Ontario-only-based chain of liquor outlets called the Beer Store, owned by Molson (49%), Labatt (49%) & Sleeman (2%) had donated over $150,000 to the BC Liberals since 2005. I found it quite strange as to why an Ontario-only chain of beer stores would have such an interest in the BC Liberal Party but when you look at who owns The Beer Store and the fact that the big, national breweries are loosing ground quickly to the smaller, craft breweries.....hmmmm
Jackass of the Year Award
There was a lot of competition for this award but for me, in the end, there was one person who stood head and shoulders above the rest, that being restaurateur Chris Stewart, otherwise known as the Wine Snob. I encountered Mr Stewart while out for dinner with my wife and daughter and was amazed at just how arrogant, insulting and well, downright ignorant this man was. To sum things up, he stated to me, knowing full-well I was the president of CAMRA Vancouver, that craft beer drinkers were not worth enticing to his five restaurants because those who drink craft beer only order yam fries and basically had no idea what good food was all about.
Political Friend of the Year for the Craft Beer Consumer Award
This award goes to NDP MLA Shane Simpson who, when I made contact with as a result of my CAMRA Vancouver President duties, was the official NDP alcohol critic. Mr Simpson was kind enough to take the time to meet with myself and CAMRA Van VP Dieter Friesen and actually listened to what we had to say. During that original meeting, Shane stated he liked what CAMRA was doing and asked us to produce a top-priority list of no more than three or four issues and stated if they made sense, he would take them forward to Rich Coleman, the Liberal minister responsible for the province`s alcohol portfolio. And true to his word he did, bringing up CAMRA`s FUSS Campaign, the Bring Your Own Craft Beer campaign and the tied house and trade practice issue in the BC Provincial Legislature. Shane also wrote several letters to both Coleman and the LCLB in support of issues brought to him by CAMRA and members of the craft beer industry and also took the time to meet with myself some of the local brewers who have their breweries located in his riding of Vancouver Hastings.
It was also Shane who, in July, put the Provincial Liberals under severe pressure in regards to their ill-fated warehouse distribution privatization plan by making public 39 pages of documents that showed the Liberals had no plans to privatize the liquor distribution warehouse system until approached by Excel Logistics personnel, who happened to be very interested in taking over BC`s alcohol distribution as they had in Alberta ans who had hired Liberal insiders to lobby for the privatization.
Political Enemy of the Year for the Craft Beer Consumer
Rich Coleman, that man just does not give a shit about the BC craft beer industry or the BC craft consumer...enough said.
Best Supporter of BC Brewed Craft Beer Award
This past year Tap & Barrel restaurant opened up in the Olympic Village on the south side of False Creek. Besides having a killer patio that will be the envy of every other restaurant in the city next summer, they have a great 24-tap selection of craft beers all from BC breweries! I know that the Alibi Room, St Augustine's and a handful of other establishments have more taps and a better selection, but none are exclusively BC beers. I love the fact that the Tap & Barrel gang are sticking local and letting our great BC beers take centre stage...I wish more places would follow suit.
Whistler Blower Award
Journalist Bob Mackin, without a doubt, was the single biggest reason the province's liquor warehouse distribution system did not get sold to Excel Logistics, a company that had been lobbying and Liberals for years and who had basically, using Liberal insiders, talked the Liberals into thinking it was in the government's and public's best interests to privatize. Despite the fact almost everyone but Excel and the Liberals were against the move, Coleman and the Liberals plowed forward but with his series of posts hash tagged #Liquorleaks, Mackin led the charge of protest, went at the Liberals relentlessly with some stellar investigative journalism and exposed what NDP MLA Shane Simpson called a "tainted process".
Biggest About Face Award
Due to the above mentioned Bob Mackin, Shane Simpson along with many other journalists and special interest groups, the Liberals quietly announced they were dropping privatization plans for their liquor warehouse system while announcing having reached a tentative agreement with BCGEU in regards to a new contract.This announcement, hidden in the tentative agreement with the unionized government workers came out of the blue, just like the announcement to privatize did some seven months earlier. No real explanation was ever given as to why the plan, which had been heavily defended despite huge criticism from almost everyone, was dropped like a hot potato.
Biggest Shitstorm in the Local Craft Beer Community Award
Probably the worst kept secret in the BC craft beer community was exposed by blogger Barley Mowat in his post "The Grinch Who Stole Cascadia" when he wrote about how Steamworks owner Eli Gershkovitch was attempting to stop other craft breweries from using the descriptor Cascadian Dark Ale as he had trademarked the word Cascadia some years back. This blog post caused a shitstorm the likes that have never been seen before in the local craft beer community and resulted in a ton of negative, on-line bashing of Eli, Steamworks and the evils of corporate greed. For me, the actions of Eli and his "Steam Team" were a sign of how the local craft beer community is changing as the stakes get higher and the competition grows.
Well there you have it folks, the VEBBie Awards. It has been quite a year and there has been so much to write about. I only touched the surface of what is going on in the BC craft beer scene and now that I no longer have the responsibilities of being CAMRA Vancouver President, I hope to dedicate more time to this blog and writing. The readership of the blog has really grown and the more I write, the more I get people contacting me with great story ideas and inside tips about what is going on. Keep the flow of information coming and I will do my best to do what I do, which is offer up my rantings, ramblings, ideas and opinions in relation to the politics of the BC craft beer scene.
Best Supporter of BC Brewed Craft Beer Award
This past year Tap & Barrel restaurant opened up in the Olympic Village on the south side of False Creek. Besides having a killer patio that will be the envy of every other restaurant in the city next summer, they have a great 24-tap selection of craft beers all from BC breweries! I know that the Alibi Room, St Augustine's and a handful of other establishments have more taps and a better selection, but none are exclusively BC beers. I love the fact that the Tap & Barrel gang are sticking local and letting our great BC beers take centre stage...I wish more places would follow suit.
Whistler Blower Award
Journalist Bob Mackin, without a doubt, was the single biggest reason the province's liquor warehouse distribution system did not get sold to Excel Logistics, a company that had been lobbying and Liberals for years and who had basically, using Liberal insiders, talked the Liberals into thinking it was in the government's and public's best interests to privatize. Despite the fact almost everyone but Excel and the Liberals were against the move, Coleman and the Liberals plowed forward but with his series of posts hash tagged #Liquorleaks, Mackin led the charge of protest, went at the Liberals relentlessly with some stellar investigative journalism and exposed what NDP MLA Shane Simpson called a "tainted process".
Biggest About Face Award
Due to the above mentioned Bob Mackin, Shane Simpson along with many other journalists and special interest groups, the Liberals quietly announced they were dropping privatization plans for their liquor warehouse system while announcing having reached a tentative agreement with BCGEU in regards to a new contract.This announcement, hidden in the tentative agreement with the unionized government workers came out of the blue, just like the announcement to privatize did some seven months earlier. No real explanation was ever given as to why the plan, which had been heavily defended despite huge criticism from almost everyone, was dropped like a hot potato.
Biggest Shitstorm in the Local Craft Beer Community Award
Probably the worst kept secret in the BC craft beer community was exposed by blogger Barley Mowat in his post "The Grinch Who Stole Cascadia" when he wrote about how Steamworks owner Eli Gershkovitch was attempting to stop other craft breweries from using the descriptor Cascadian Dark Ale as he had trademarked the word Cascadia some years back. This blog post caused a shitstorm the likes that have never been seen before in the local craft beer community and resulted in a ton of negative, on-line bashing of Eli, Steamworks and the evils of corporate greed. For me, the actions of Eli and his "Steam Team" were a sign of how the local craft beer community is changing as the stakes get higher and the competition grows.
Well there you have it folks, the VEBBie Awards. It has been quite a year and there has been so much to write about. I only touched the surface of what is going on in the BC craft beer scene and now that I no longer have the responsibilities of being CAMRA Vancouver President, I hope to dedicate more time to this blog and writing. The readership of the blog has really grown and the more I write, the more I get people contacting me with great story ideas and inside tips about what is going on. Keep the flow of information coming and I will do my best to do what I do, which is offer up my rantings, ramblings, ideas and opinions in relation to the politics of the BC craft beer scene.
Sunday, December 30, 2012
Is the BC Beer Market About to Become the Wild West?
If the rumours I have been hearing the past few weeks are true the BC beer market may resemble the Wild West by the middle of January.
I have been informed from two completely different sources that the BC Liberals will finally be making an announcement in regards to what course of action they will take two years after the Liquor Control and Licensing Branch.put out a consultation paper requesting industry input in regards to proposed changes to the laws regulating tied house and trade practices.
If the information I am getting is correct, and I do believe it to be so, the changes are to be announced by mid-January and will completely deregulate tied houses and trade practices, leaving the BC market wide open, reminiscent of the Wild West, for the highest bidders to lock down pubs, restaurants and liquor stores by either buying these outlets or offering large amounts of cash, or other inducements, for exclusivity rights (bars/restaurants) and preferential shelf placement (liquor stores).
The original call for input outlined three options for tied house law changes, those being to eliminate tied house prohibitions altogether, permit tied houses between the same corporate entity, but limit the number of tied houses a person can hold to limit risk of market consolidation or to permit tied houses with public interest restrictions.
They also laid out three options in regards to trade practice regulations, those being to eliminate trade practice restrictions altogether, reduce or eliminate most trade practice restrictions or to streamline some trade practice policies and procedures
For better explanations as to what those options mean, click on the consultation link above.
There has been a great divide among the players in the craft beer industry as to whether deregulating tied house and trade practice restrictions will have a negative impact on the industry or not. You can read in more detail what this is all about here and here.
The biggest fear is that the larger, deep-pocketed, national and multinational breweries will simply buy pubs and restaurants, or pay licensees to favor their products, to stop the growth of the local craft beer industry which has managed to claw their way from 7% to about 15% of the domestic beer market in BC over the past five years. That growth may not sound much, but when you consider that each percentage point represents over $8 million dollars in sales, you can see why the bigger, national macro-breweries do not want the smaller breweries get any stronger. There are also some concerns that the more aggressive and growth-oriented local breweries, willing to incur short-term losses for long term gains, might just try to buy a larger share of the market by stepping on their competition who are more focused on sustainability and producing great beers.
There is also the fear that licensees will begin to demand cash, free product and kickbacks for the right to sell beer in their establishments which will prohibit smaller breweries from being able to sell their beers in those types of establishments.
Many others say that the deregulation of the tied house laws will not impact the major craft beer markets like Greater Vancouver and Victoria and will give craft breweries in smaller markets, where marco-beers dominate, another outlet to sell their beer if they have the means to invest in a pub, restaurant or liquor store. There is also the argument that the practices of bribery by breweries and demanding payment of some type by licensees are alive and well in the beer industry because the laws are impossible to enforce and that deregulating will have little impact.
If the laws are wiped from the books, it will be interesting to see what happens. As a consumer, I would like to see a middle ground approach, where their are some safeguards in place to stop the larger, richer breweries from simply buying tap, fridge and shelf space to the point of restricting their competition similar to what happened in the UK in the 1990's. But I think, at least here in Vancouver, there are too many licensees who are committed to craft beer because it is simply a better product, because selling craft beer is profitable and because there is a great thirst among local beer drinkers for superior craft beer products.
In the end, as a consumer, I can only hope that if there is deregulation, it does not result in restricted access to locally brewed craft beers or higher prices. If so, it will have to be the consumers who rally and demand a further review by which ever political party gains power in the upcoming election as the industry is too divided on these issues.
I have been informed from two completely different sources that the BC Liberals will finally be making an announcement in regards to what course of action they will take two years after the Liquor Control and Licensing Branch.put out a consultation paper requesting industry input in regards to proposed changes to the laws regulating tied house and trade practices.
If the information I am getting is correct, and I do believe it to be so, the changes are to be announced by mid-January and will completely deregulate tied houses and trade practices, leaving the BC market wide open, reminiscent of the Wild West, for the highest bidders to lock down pubs, restaurants and liquor stores by either buying these outlets or offering large amounts of cash, or other inducements, for exclusivity rights (bars/restaurants) and preferential shelf placement (liquor stores).
The original call for input outlined three options for tied house law changes, those being to eliminate tied house prohibitions altogether, permit tied houses between the same corporate entity, but limit the number of tied houses a person can hold to limit risk of market consolidation or to permit tied houses with public interest restrictions.
They also laid out three options in regards to trade practice regulations, those being to eliminate trade practice restrictions altogether, reduce or eliminate most trade practice restrictions or to streamline some trade practice policies and procedures
For better explanations as to what those options mean, click on the consultation link above.
There has been a great divide among the players in the craft beer industry as to whether deregulating tied house and trade practice restrictions will have a negative impact on the industry or not. You can read in more detail what this is all about here and here.
The biggest fear is that the larger, deep-pocketed, national and multinational breweries will simply buy pubs and restaurants, or pay licensees to favor their products, to stop the growth of the local craft beer industry which has managed to claw their way from 7% to about 15% of the domestic beer market in BC over the past five years. That growth may not sound much, but when you consider that each percentage point represents over $8 million dollars in sales, you can see why the bigger, national macro-breweries do not want the smaller breweries get any stronger. There are also some concerns that the more aggressive and growth-oriented local breweries, willing to incur short-term losses for long term gains, might just try to buy a larger share of the market by stepping on their competition who are more focused on sustainability and producing great beers.
There is also the fear that licensees will begin to demand cash, free product and kickbacks for the right to sell beer in their establishments which will prohibit smaller breweries from being able to sell their beers in those types of establishments.
Many others say that the deregulation of the tied house laws will not impact the major craft beer markets like Greater Vancouver and Victoria and will give craft breweries in smaller markets, where marco-beers dominate, another outlet to sell their beer if they have the means to invest in a pub, restaurant or liquor store. There is also the argument that the practices of bribery by breweries and demanding payment of some type by licensees are alive and well in the beer industry because the laws are impossible to enforce and that deregulating will have little impact.
If the laws are wiped from the books, it will be interesting to see what happens. As a consumer, I would like to see a middle ground approach, where their are some safeguards in place to stop the larger, richer breweries from simply buying tap, fridge and shelf space to the point of restricting their competition similar to what happened in the UK in the 1990's. But I think, at least here in Vancouver, there are too many licensees who are committed to craft beer because it is simply a better product, because selling craft beer is profitable and because there is a great thirst among local beer drinkers for superior craft beer products.
In the end, as a consumer, I can only hope that if there is deregulation, it does not result in restricted access to locally brewed craft beers or higher prices. If so, it will have to be the consumers who rally and demand a further review by which ever political party gains power in the upcoming election as the industry is too divided on these issues.
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