There has been a great upheaval in Central Okanagan brewery scene.
At least three local craft breweries have permanently closed their doors, all within a month.
“There were three breweries in December,” said Ken Beattie, executive director of the BC Craft Brewers Guild. “It happened quite quickly and it’s unfortunately because of the market itself.”
December saw the closure of Vice and Virtue Brewing in Kelowna after nearly seven years in business, with Kelowna Brewing Company near UBC-Okanagan and Lake Country Brewing also announcing their permanent closure.
“Was it a surprise that it was in a place, like in an area in Kelowna, yes it surprised me, but it didn’t surprise me that there were breweries closing,” Beattie said .
Beattie said that with cash flow declining and the price of goods rising, the pressure is taking its toll.
“I know of a number of breweries that are holding on and we are now into wet or dry January and February. It’s the worst time of year for sales anyway,” added Beattie.
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Industry officials said many businesses have benefited from COVID-19-related government subsidies, but the post-pandemic economic climate is difficult and the hospitality sector is among the hardest hit.
“The government has been quite generous with the number of grants during the pandemic, we have also taken on record levels of debt…during the pandemic just to get by,” said Jeff Guignard, executive director of the Alliance of Beverage Licensees.
“They’ve been trying for the last few years to get their way, but it’s just not working for some of these companies.”
Some businesses, even well-established ones like Fixx Café, are forced to close their doors.
In the case of Fixx Café, the closure occurred after 20 years of activity.
“Every month it’s more and more difficult,” Guignard said. “We are going through difficult economic times and unfortunately I would not be surprised if we see more closures of this type in the future. »
While the situation is expected to deteriorate before it improves, the government is urged to reduce the regulatory and tax burden on businesses.
Local sections are also invited to do their part.
“If you have a favorite neighborhood pub, bar, restaurant or craft brewery in your area, get out and support them,” Guignard said. “They need your business more than ever.”
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