It’s a beer that’s been in Nova Scotia since the 1800s, but Oland Brewery might be looking to move because of rising utility costs.
The company says rising utility costs, like Halifax Water’s proposal to hike rates by 35 per cent, are creating an unfair business environment.
Oland’s general manager sent a letter to the province’s regulatory and appeals board last week saying, “as the federal and provincial governments work to remove internal trade barriers, companies like ours may move production to jurisdictions where it is more affordable.”
Business professor Ed McHugh, who teaches at several Halifax-area post-secondary schools, says sudden rate hikes can really disrupt a business’s plans.
“This is an industry that uses a lot of water. And so, now when they get hit with this increase, which will be quite significant … in the middle of their business planning cycle, I think it’s a little out of step,” he said.
McHugh says the beer industry has become highly competitive with the growth of the craft beer scene, meaning less market dominance for bigger brands.
Oland’s is owned by Labatt, which also brews Budweiser and Alexander Keith’s.
“Oland’s is in a very tough fight right now, a tougher fight than it would have been 20 years ago, so this is a tough one for them to swallow,” said McHugh.
“And you can’t just say, ‘Well, I’ll use less water’ because I can’t.”
A public hearing for Halifax Water’s rate application, which Oland has intervened in, will begin next week.
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