There’s been a big shake-up in the Central Okanagan’s brewery scene.
At least three local craft breweries have shut their doors for good — all in a one-month span.
“It was three breweries in December,” said Ken Beattie, executive director of the BC Craft Brewers Guild. “It came kind of quickly and it is just unfortunately because of the market itself.”
December saw the closure of Vice and Virtue Brewing in Kelowna after nearly seven years of operations as well as the Kelowna Brewing Company near UBC-Okanagan and Lake Country Brewing also announced its permanent closure.
“Was it a surprise it was in one location, like one area Kelowna yes that was surprising to me but it wasn’t surprising to me that there are going to be breweries closing,” Beattie said.
Beattie said with cashflows down and the price of goods up, the pressure is taking a big toll.
“I happen to know of a number of breweries that are just hanging on and now we are in damp or dry January and February. This is the worst time of the year for sales anyways,” Beattie added.
Industry officials said many businesses were propped up with COVID-19-related government grants but the post-pandemic economic climate is a tough one, and the hospitality sector is among the hardest hit.
“Government was quite generous with the number of grants during the pandemic, we also took on record levels of debt … during the pandemic just to get through,” said Jeff Guignard, executive director for the Alliance of Beverage Licensees.
“They have been trying the last few years to scrape their way through but it is just not working for some of these businesses.”
Some of the businesses, even well-established ones such as the Fixx Cafe, are being forced to close.
In the case of Fixx Cafe, the closure came after 20 years of operations.
“Every month it is just getting harder and harder,” said Guignard. “It’s tough economic times and I would not be surprised that unfortunately if we saw more of these closures in the future.”
With conditions expected to get worse before getting better, the government is being urged to lower regulatory and tax burdens on businesses.
Locals are also being asked to do their part.
“If you have a favourite neighbourhood pub, bar or restaurant or craft brewery in your area, get out and support them,” Guignard said. “They need your business now more than ever.”
