Others are smaller, but just as familiar: neighbours pulling chairs into a Montreal laneway behind the houses on one of the first warm evenings of the year to watch hockey together, beer in hand, kids running around, conversations and cheers lingering long after sunset. Beer has always had a place in those moments. But its contribution starts well before the first drink is poured.

A Canadian industry

Beer is a uniquely Canadian product and industry. About 90 per cent of beer consumed in Canada is brewed domestically, supporting 23,580 direct jobs and 149,000 more across the national supply chain.

Made from Canadian-grown agricultural inputs and supported by local production, distribution and hospitality networks, beer’s economic footprint reaches well beyond breweries themselves. Nearly one in five beers sold is consumed outside the home, helping sustain local hospitality businesses and community gathering spaces. In summer, that local presence becomes easier to see.

Part of the summer experience

At festivals, concerts, sporting events and community celebrations, beer is often part of the broader event ecosystem. For organizers, revenues from concessions and sponsorships can help support programming, stages, artists, technical crews, security, site infrastructure, cleaning and visitor services.

Beer does not simply accompany these events. In many cases, it helps make the event model work. The same holds true on a smaller scale. A beer garden at a community festival. A local fundraiser. A patio that becomes part of a neighbourhood’s seasonal routine. A brewery visit added to a weekend trip. These are not always headline moments, but they are part of how Canadians experience summer in their own communities. That experience is also evolving.

Sipping outdoors

What began in many places as a temporary response to pandemic restrictions has, in several municipalities, become a more permanent recognition that parks and public spaces are also places where adults can gather responsibly. More than 25 municipalities now have permanent programs that allow responsible alcohol consumption in designated outdoor spaces, where permitted by provincial rules.

Montreal and Quebec City had already permitted alcohol consumption in parks with a meal before the COVID-19 pandemic, while cities such as Vancouver, Toronto, Edmonton and Calgary have since moved toward designated park or public-space models. That matters at a time when many Canadians are exploring more of their own country.

Big events, shared moments

From Atlantic Canada to the Prairies, from Quebec to the West Coast, breweries, patios, taprooms, beer gardens and public gathering spaces have become integral to local tourism and hospitality.

Canada’s beer tourism market is projected to reach approximately $1.5 billion by 2030, reflecting growing interest in local flavours and experience-based travel. This summer will also be marked by the excitement of Canada co-hosting the FIFA World Cup. Major sporting moments have a way of turning individual games into shared national experiences – in stadiums, bars, patios, fan zones and homes across the country.

Beer has long been part of how Canadians mark those occasions. The details vary from place to place. It may be a brewery visit on a weekend getaway, a beer garden after a bike ride, a patio before a concert, a park picnic with friends or a community celebration that brings together neighbours, volunteers, local businesses and visitors. The setting changes, but the role remains familiar.

Looking ahead to Canadian Beer Day

That same idea will be at the heart of this year’s Canadian Beer Day, taking place on Oct. 7 under the theme, “Brewed into Canadian Culture.” After a summer of festivals, patios, community events and everyday gatherings, Canadian Beer Day offers a moment to recognize something Canadians see throughout the season: beer is connected to local jobs, shared places and the communities that make those moments possible.

Summer reminds us that beer is more than a product. It is brewed into the moments, traditions and shared experiences that help define Canadian culture.

The assumption is that people simply like beer less than they used to. That explanation is incomplete.

A lot of the change we’re seeing isn’t about people liking beer less. It’s about people spending less time together, and beer has always been about connection. Across Canada, people are socializing less often. According to Restaurants Canada’s 2025 Foodservice Facts report, three out of four Canadians say they are eating out less due to the rising cost of living, and that figure increases to 81 per cent among those aged 18 to 34.

Housing costs, irregular work schedules, digital habits, and the lingering effects of the pandemic have also reduced opportunities for informal, in-person socializing. The “third places” that once anchored communities – neighbourhood pubs, local restaurants, community halls and gathering spots – are under strain. When communities gather less, beer is part of what gets lost.

For some, this may seem like a positive change. But in truth, it points to a deeper problem. This isn’t just about drinking habits, it’s about social infrastructure.

For generations, beer has been part of how Canadians connect after work, at community events, during major sporting moments and at family celebrations. These shared experiences help build relationships, reduce isolation, support mental well-being and foster informal exchanges where ideas, creativity and collaboration often emerge. Strong social connections are essential not only to personal health, but also to vibrant, innovative and resilient communities.

When gathering places and shared rituals weaken, the social fabric frays. People become more isolated, local businesses struggle and communities lose important spaces for dialogue, belonging and mutual support.

If we are serious about supporting healthy, connected communities, we need to look beyond individual consumer choices and address the structural factors that make gathering harder, from affordability and taxation to the sustainability of neighbourhood pubs, restaurants and community spaces.

Start with affordability

Affordability is now one of the biggest barriers to social participation. Nearly 46 per cent of the price of beer in Canada is made up of taxes and government charges. Automatic tax increases, mark-ups and layered regulatory costs make social occasions more expensive every year, even when household budgets are already stretched.

When meeting friends becomes unaffordable, people stop going out. They stay home. They disconnect. Keeping taxes and fees under control is not about encouraging overconsumption. It is about ensuring that everyday social interactions remain accessible to hard-working Canadians.

Restore balance in beer taxation

Canada’s beer tax system has become increasingly disconnected from economic reality. Automatic annual increases happen regardless of market conditions, sales trends or affordability pressures. Predictable, reasonable taxation allows brewers to invest, innovate and keep prices stable. It also helps ensure that beer remains a practical, social option rather than an occasional luxury. Smart tax policy supports moderation, stability and community life.

Protect bars and restaurants as community anchors

Bars, pubs and restaurants are not just businesses. They are social institutions. They are where neighbours meet, teams celebrate, friends reconnect and communities come together. They employ over one million Canadians and serve as a training ground for countless young people, anchoring main streets in towns and cities across the country.

For many of these establishments, beer is also a key driver of profitability, helping to sustain operations, support staffing and reinvest in their businesses. Yet these establishments are facing unprecedented cost pressures, from labour and rent to energy and insurance, on top of declining foot traffic. Protecting the hospitality sector is about protecting places where connection happens and opportunities begin.

Policy decisions that increase costs or undermine viability weaken the very spaces that foster responsible, social drinking, workforce development and community engagement.

Rebuild social infrastructure

Strong communities do not happen by accident. They depend on affordable places to gather, stable local businesses, supportive regulatory environments and policies that recognize social value alongside fiscal considerations. When we invest in this social infrastructure, we strengthen mental health, economic resilience and civic life.

Beer has always played a role in that ecosystem. When enjoyed responsibly, it brings people together, marks important moments and helps create shared experiences that reinforce community bonds.

A broader conversation worth having

Declining beer consumption should not be viewed in isolation. It is a signal of deeper shifts in how Canadians live, work and connect. If we want stronger communities, we must make it easier for people to spend time together. That starts with affordability and requires fair, predictable taxation. This means repealing the federal automatic annual beer tax hike and ensuring provincial governments steer clear of new mark-up and tax increases that further strain consumers and local businesses.

Beer is not just a product. It is part of Canada’s social fabric. Preserving that fabric benefits consumers, workers, businesses and communities alike.

Beer continues to be the top choice for drinking-age Canadians, accounting for almost 36 per cent of all alcohol sold in 2024. Yet, its resilience is rooted in far more than sales data. Beer’s enduring appeal comes from its deep cultural roots, its authentic craftsmanship and the social psychology that makes it unlike any other beverage.

Beer is woven into Canada’s social fabric

Beer is the beverage Canadians reach for in their everyday moments. After a long shift, at the rink, around the campfire or while meeting up with friends, it’s democratic, unpretentious and approachable. There’s no right way to drink a beer. No script, no ritual, just connection.

Canadian brewers, both large and small, have built that emotional connection over generations. With 88 per cent of beer consumed in Canada brewed domestically, Canadians know that the beer in their fridge supports Canadian workers, farmers, maltsters, taproom staff and the local pubs that act as community anchors. Beer’s story is local by nature, and drinkers feel that authenticity.

The spectrum of choice keeps expanding

If the last decade has taught us anything, it’s that beer is not one thing, it’s hundreds. From crisp lagers to barrel-aged sours, hazy IPAs to non-alcoholic stunners, Canadian brewers have expanded what “beer” can mean.

Consumers are exploring more than ever, often trying different options within the same occasion, and brewers are rising to meet that curiosity with new flavours and styles inspired by global trends, a wave of premium and craft-forward releases, an expanding range of options such as low-calorie and low-carb beers, and a booming non-alcoholic category that is redefining what moderation looks like. This evolution has kept beer culturally relevant while attracting new drinkers who may not have connected with traditional styles.

Beer signals relaxation and togetherness

Ask Canadians what beer means to them, and you’ll hear a similar sentiment: it’s relaxing, social and instantly recognizable. People reach for beer when they want to decompress or spend time together, not when they’re trying to impress. It’s a drink that makes moments feel easy. When consumers want something approachable and enjoyable, beer is the default, something other categories can’t quite replicate.

Beer’s economic footprint reinforces its cultural staying power

Beer is also a quiet economic engine. The industry supports 149,000 Canadian jobs and contributes $13.6 billion to Canada’s GDP. That footprint ensures that beer remains not only culturally relevant, but economically vital. Another reason Canadians feel a sense of connection and ownership over it.

A beverage built for modern Canada

Beer’s future in Canada isn’t about defending market share. It’s about evolving with consumers while staying true to what Canadians love about it: approachability, craftsmanship, community and choice. From coast to coast, brewers are innovating, investing and finding new ways to make beer part of Canadians’ lives. Whether that’s a classic lager after a shift, a cutting-edge sour on a patio or a non-alcoholic pale ale at the ski hill.

Beer isn’t going anywhere. In fact, it continues to reflect the values of today’s drinker better than ever: local, authentic, diverse and proudly Canadian.

The Canadian beer industry supports 149,000 jobs across farming, brewing, distribution, retail and hospitality. Well beyond its direct tax revenue, the production, distribution and sale of beer generate billions of dollars in economic value for local economies. However, beyond its economic impact, beer is uniquely tied to history and culture. Everyone longs to share time with family, friends, neighbours or co-workers. Canadians feel at ease and at home when those times include a beer, whether at a corner pub, curling rink or a backyard.

The local thread in Canada’s social fabric

Few products can claim to be as “homegrown” as Canadian beer. Most Canadian brewers source nearly all their barley and other cereal grains from Canadian farms. Canada is recognized globally for growing high-quality malting barley, prized by brewers far beyond its borders. From its breeding varieties to its purity, quality control systems and ideal growing conditions, Canadian barley is one of the world’s most trusted sources for maltsters and brewers. This symbiotic relationship between Canadian barley and domestic brewers is a true farm-to-glass success story. Brewers, farmers and maltsters rely on and support each other to make some of the finest beers in the world.

Every Canadian beer carries within itself a story about farmers, maltsters, truck drivers and servers. These are neighbours whose livelihoods are connected to one another by and through beer. Beer is, in many ways, an economic ecosystem that doubles down as a social force.

Beer in Canada’s cultural life

Think of a few of the best moments that bring people together: cheering for the local sports team, celebrating life’s milestones or getting together at a community festival. Beer has been part of those great times for generations. Styles and flavours may evolve, but beer remains central to celebrations, big and small. Beer’s moderate alcohol content makes it a natural companion to Canadians’ social lives, where the point is enjoying one another’s company.

Canadian beer also carries a sense of heritage. Today’s diverse brewing landscape reflects that history while embracing innovation. From classic lagers to adventurous IPAs and an explosion in new non-alcoholic options, Canadian brewers marry Old World techniques with New World innovation to create a wide range of beer styles to satisfy Canada’s cultural diversity.

The role of breweries in communities

Breweries themselves often serve as community social hubs. Across the country, local breweries sponsor local sports teams, festivals and special events. As neighbours, brewers have frequently been among the first to offer support and assistance in times of crises, from the COVID-19 pandemic to recent floods and wildfires.

Responsible enjoyment and shared experience

Most Canadians who choose to drink do so as part of a balanced and healthy lifestyle. The Canadian brewing industry has long been a leader in promoting moderation and responsible drinking, reminding Canadians to always ensure a safe ride home, avoid underage or binge drinking, and savour beer’s great taste.

What makes beer particularly suited to responsible social enjoyment is its range of alcohol strengths and serving sizes. From low alcohol lagers to alcohol-free offerings, Canadian brewers provide options that allow beer consumers to participate in an active and busy social life without excess. It’s one of the few categories of alcohol that naturally fosters inclusivity and connectivity.

Beer as a bridge in a divided world

At a time when digital screens dominate, beer offers something profoundly analogue: human connection. Sharing a beer means putting down the phone, sitting across from someone and engaging in conversation.

Beer also has a unique ability to bridge divides. Different generations can sit at the same table with a pint, immigrants can introduce their brewing traditions into Canadian communities and neighbours who disagree on politics can still bond over their local brew. In a world where differences often keep people apart, beer has a unique way of bringing people together.

The policy connection: Protecting a community anchor

For policymakers, recognizing beer as a community builder means more than photo ops and election backdrops. It means supporting the operating conditions that allow brewers, pubs and bars to thrive. Sky-high taxes and automatic annual beer tax hikes undermine local businesses and jobs, and the social spaces that depend on them.

When nearly half the price of beer in Canada goes to the government in taxes (more than in any other G7 country), it weakens the ability of breweries and hospitality businesses to invest back into their communities. Every dollar squeezed in additional taxes is a dollar that isn’t going into sponsoring the local soccer team, hosting a festival or supporting the wages of local staff who keep neighbourhood pubs and restaurants thriving. Supporting the beer industry is about safeguarding a sector that helps create communities, jobs and culture.

Looking ahead: Beer’s place in Canada’s future

As Canada navigates demographic shifts, changing consumption habits and international trade pressures, its brewers will continue to evolve to meet the future head-on. Many younger consumers are more mindful of health and wellness, but also look for authentic, social experiences. Canadian beer can thrive in this new marketplace, as it offers lower-alcohol, non-alcoholic and sustainably produced options that meet the expectations of today’s adult consumers.

The Canadian beer industry has a tremendous opportunity to succeed in this future by telling its story not just as a producer of beverages, but as a builder of communities and a positive facilitator of social interactions.

Beer’s value goes far beyond the taproom. It represents a chain of connections, from farmer to brewer to consumer, from one neighbour to another. In a time when Canada needs more unity and shared spaces, beer remains one of its most enduring community builders.

Canadian beer has long held a special place in the culture, history, economy and social lives of Canadians from coast to coast. However, Canadian Beer Day seems more relevant and important now than ever. In the face of remarks on their country’s sovereignty and economy, Canadians are showing their pride.

Beer is a truly Canadian industry, with 88 per cent of all beer consumed in Canada made here by Canadian workers in Canadian plants from Canadian water, barley and other grains. Canadian brewers also prioritize local purchases whenever possible. In fact, a recent study showed that 84 per cent of the value of all the inputs used to brew Canadian Beer is bought from fellow Canadian businesses, workers and farmers.

To complement home-grown styles and brands, Canadian brewers have invested to produce in their Canadian plants a wide range of some of the world’s leading beer brands. The patriation of these brands means that all the economic value associated with their brewing accrues directly to Canadian businesses and workers. In addition, their domestic production allows brewers to maximize both their production and distribution efficiencies helping keep beer affordable for hard-working consumers.

This year’s Canadian Beer Day theme, “There’s Nothing Like a Beer,” captures the spirit of what makes beer unique. For many Canadians, beer is more than a thirst-quenching beverage. It signifies friendship, camaraderie, moderation, community and good times. Sharing a pint of beer is a social bond that brings families, neighbours or coworkers together. The social benefits of sharing time together in person means more than ever to an individual’s mental and social well-being.

As Brock University professor Dan Malleck, PhD, opined, “Drinking is not just the act of consuming a certain amount of ethanol. It often takes place in a social space, and it’s a way for humans to form connections, celebrate, mourn and stave off loneliness and isolation, which we know from the pandemic can have real medical consequences.”

Beer is a particularly social beverage with 20 per cent to 25 per cent typically consumed out-of-home, in the company of others, whether at a neighbourhood restaurant, a concert, a sporting event or a festival. Beer’s low alcohol content also promotes moderate, responsible consumption. Drinking for the pleasure of the taste of what’s in the glass (or can), and more importantly, the company, separates beer-drinking from many other products and activities.

There’s also a compelling economic story to celebrate. With nearly 90 per cent of all beer consumed in Canada made here, local brewing supports more than 149,000 Canadian jobs across the full supply chain. Strong grains-to-glass manufacturing equates to local economic activity, including important contributions from grain farmers, maltsters, truckers, label, can and bottle makers, retailers and servers.

Many Canadians reject recent calls from neo-prohibitionist activists to put radical new restrictions on beer’s availability or brewers’ local sponsorships. Today’s modern beer consumer wants their governments to treat them as adults and provide them with convenient access to purchase and consume the beer brands they prefer. The country has seen real progress recently in terms of expanded retail access in some provinces and momentum in terms of direct-to-consumer manufacturer sales.

In addition, there are over 30 communities across Canada that now allow responsible beer consumption in designated public parks, plazas or beaches. Follow-up studies conducted by participating municipalities indicate strong public support from park visitors and no increase in disturbances or nuisance issues.

In all these market liberalization initiatives, Beer Canada has engaged directly with regulators and legislators to ensure the proper regulatory and legal frameworks are developed and put in place, ensuring confidence in both the fiscal and social responsibility requirements of government, and the protection of the health and safety of communities.

At the same time, many Canadians also want governments to elimate beer tax increases and recognize that Canada already has the highest beer taxes of all G7 countries. Other beer producing countries recognize that a more balanced approach to beer tax policy is widely popular with their electorate, and also promotes new investment and jobs. By skimming off the top nearly 50 per cent of beer’s retail transaction value, Canadian governments sap any financial flexibility from brewers to respond to unexpected cost pressures. Recently, Canadian brewers have been subjected to peak inflation, energy and transportation cost spikes, labour shortages, U.S. tariffs and Canadian counter measures and rising beer taxes.

For licensed venue owners and staff, Canadian Beer Day is an occasion to celebrate. It’s a chance to turn patrons into champions of Canadian beer, whether by spotlighting homegrown selections, offering tasting menus, or simply reminding customers that their purchasing choice supports Canadian workers, farmers and businesses. In a competitive marketplace, beer stands out because it reflects something truly Canadian: community.

This Oct. 8, Beer Canada is celebrating Canadian Beer Day with pride, raising a glass to the brewers, hospitality businesses and adult beer drinkers, and reminding everyone that when it comes to culture, community and connection, there really is nothing like a beer! 

Learn more or get involved at canadianbeerday.ca.

From coast to coast, Canadian breweries support local, well-paying jobs, drive economic activity and facilitate coming together in positive social gatherings. However, hurricane-level storm warnings are ahead as the brewing industry faces a new set of unprecedented domestic and foreign economic challenges. It is time for Canada’s governments to step up and ensure the future of Canadian brewing for generations to come.

A truly Canadian industry

Few industries are as inherently Canadian as beer and brewing. In 2024, 88 per cent of all beer consumed in Canada was made by Canadian workers in Canadian breweries. Canadian brewers also source 84 per cent of all their inputs from fellow Canadian businesses, workers and farmers. More than 1,300 breweries operate in communities large and small, urban and rural, across the country, directly employing 24,000 Canadians and supporting over 149,000 jobs from agriculture, transportation, marketing, retail and hospitality.

Beer is not just an economic powerhouse – it is a cornerstone of community. Local breweries, taprooms and pubs serve as gathering places and local social hubs where families, neighbours or coworkers connect. Brewers are among the first to step up when their communities are in need. Whether sponsoring sports tournaments, supporting festivals or mobilizing resources in times of crisis – such as producing hand sanitizer during the COVID-19 pandemic or canned drinking water during natural disasters – brewers have always been there for Canadians. Now, they need Canadian governments to meet them halfway.

Canada’s unfair tax burden on beer

The Canadian beer industry is currently taxed at an alarming and unsustainable rate. Nearly 50 per cent of the typical retail price of beer in Canada are taxes – the highest in the G7. Since the Trudeau government’s 2017 budget, federal beer (and other alcohol beverages) taxes have increased automatically every year due to inflation-indexed increases, rising in total by more than 16 per cent without a single vote in Parliament by elected members. No other food or beverage product in Canada is subject to this kind of undemocratic taxation.

Canada’s major trading partners, including leading beer-producing nations like Germany, do not employ such a punitive and rigid beer taxation system. Other beer-producing nations recognize the value and importance of creating and sustaining a positive investment and operating environment for local brewers. In fact, countries like Japan and the U.S. have decreased their beer taxes in recent years to spur growth, investment and job creation. At a time when Canadian brewers are grappling with increased costs, supply chain disruptions and nearly unprecedented economic and trade uncertainty, raising federal or provincial beer taxes would be devastating to the sector with ripples across the broader economy.

Unwarranted and unprecedented tariff threats

Canadian brewers buy local whenever possible. However, like many Canadian business sectors, due to integrated supply chains, certain essential materials must be imported. For example, Canada has no aluminum rolling mill manufacturing capacity. Canadian virgin aluminum is sent to the U.S. for transformation into can sheets, the essential precursor to the aluminum beverage can.

The Trump Administration is threatening to impose a 25 per cent import tariff on Canadian aluminum that would be added on top of their threatened 25 per cent across the board (excluding energy) tariffs on Canada and Mexico. With over 80 per cent of Canadian beer sold in cans, these unwarranted tariffs would be another cost increase that brewers cannot absorb. While it is uncertain whether or to what extent these American tariffs on Canadian goods will materialize, the mere threat has already increased aluminum’s benchmark U.S. Midwest price by over 50 per cent this year.

What governments can do to help

Canada needs a more fair and democratic tax framework for beer. Beer Canada recommends four immediate steps. First, the Canadian federal government must take immediate action with a precautionary “do no harm” approach to protect and support Canadian brewers, beer consumers and the broader hospitality sector. This includes eliminating the rigid, automatic annual indexing of beer taxes, which fuels inflation.

Second, the Department of Finance must also undertake a fundamental review of their approach to beer taxes to encourage the investment required to sustain a healthy and vibrant self-sufficient domestic beer industry. Third, provinces must step up and lower their own fiscal burdens on beer.

Fourth, the federal and provincial governments must work together to eliminate outdated regulations, red tape and facilitate inter-provincial trade of beer. Too many prohibition-era rules add unnecessary costs and complexities for brewers selling in provinces outside of their home-base. A modernized approach to inter-provincial trade would create a more competitive and accessible marketplace, benefiting not just brewers, but Canadian consumers who deserve greater choice and affordability.

By addressing both tax reform and trade barriers, governments can foster an operating environment in which Canadian brewers of all sizes and regions are able to compete, invest and succeed. A strong brewing industry means more jobs, more economic growth and more opportunities for Canadians to enjoy locally-made beer.

Canadian brewers have always been strong, resilient and committed to their communities. However, they cannot continue to grow under an unfair tax system and unnecessary trade barriers. If the government is serious about protecting jobs, supporting local businesses and strengthening our economy, it must act now to level the playing field. It is time for policymakers to recognize the value of the beer industry and take meaningful action to support its future.

Canadian beer is worth fighting for. Let’s ensure it has a future as strong as its past.

The importance of responsible beer consumption

Responsible beer consumption benefits not only the individual drinker, but the community. Excessive drinking poses well-documented risks, including impaired judgment, health complications and community safety issues, such as impaired driving. Beer Canada and many of its member companies continue to invest in public awareness and education programs to reduce various forms of harmful drinking.

Beer occupies a unique space in this context. Beer’s lower alcohol by volume levels positions it as a choice of moderation for many drinkers. When consumed responsibly, beer serves as a bridge to social connection, celebration and relaxation. It holds a central place in many social occasions, from casual get-togethers to large community celebrations. If the recent global pandemic has taught us anything, it is that these in-person connections are essential for maintaining one’s mental health and overall well-being.

The role of non-alcoholic beer in modern hospitality

Bars and restaurants are not simply places of food and beverage consumption; they are social hubs where a community’s cultural trends are forged. As consumer preferences shift toward healthier lifestyles, hospitality venues must adapt to meet these evolving demands. Including a variety of non-alcoholic beers on beverage menus is no longer just nice to have – it is a necessity for hospitality business success.

The Canadian non-alcoholic beer market has experienced exponential growth in recent years. Ontario’s LCBO, for example, reports a near 70 per cent increase in non-alcoholic beer sales over the past 12 months alone. Gen Z and Millennials, in particular, are leading the charge in seeking flavourful, low or no-alcohol alternatives.

In a fall 2024 Leger Marketing poll commissioned by Beer Canada, 17 per cent of Canadians had reported buying non-alcoholic beer at a retail store over the previous 12 months. For the 18-34 age groups, the number climbed to 22 per cent. However, the same survey showed a significant under performance in the on-premises sales channel, with only seven per cent of respondents consuming a non-alcoholic beer in a licensed bar or restaurant.

The rise in popularity of non-alcoholic beer can be attributed largely to significant investments by brewers in research, brewing techniques and specialized equipment to create products that can rival the taste and quality of their alcoholic counterparts. Historically, non-alcoholic beers carried a reputation for blandness or lacking the complexity of other beer brands. Canadian brewers now employ innovative brewing techniques to create non-alcoholic beers without compromising flavour, while offering a wide range of styles and flavour profiles.

In licensed establishments, non-alcoholic beers are typically sold at a price point higher than other non-alcoholic beverage options, such as juice or soft drinks, providing bars and restaurants another path to increased revenues and profitability. At the same time, establishments that champion responsible drinking build trust and loyalty among patrons, who appreciate venues that prioritize customer safety, well-being and inclusivity alongside excellent service.

Zebra-striping: A simple strategy for responsible drinking

The idea of alternating between a beer and a glass of water as a way to pace drinking or keep hydrated is far from new; it has been a go-to strategy for mindful drinkers for years. However, with the growing variety of flavourful non-alcoholic beers now available, this practice has evolved into something even more enticing. Known as zebra-striping, the approach of alternating between alcoholic and non-alcoholic beverages is gaining traction as an effective and appealing way to drink responsibly.

Zebra-striping is both intuitive and transformative. By incorporating non-alcoholic beers into their evening, drinkers can significantly reduce their alcohol consumption while still enjoying the flavours and social aspects of drinking beer with family, friends, neighbours or co-workers.

This approach sits at the intersection of tradition and modern responsibility, giving beer a unique role in promoting healthier consumption practices. Zebra-striping – coupled with the growing presence of high-quality, non-alcoholic beers – offers a straightforward path to fostering a culture of balance and intentional drinking. For bars and restaurants, embracing these strategies means more than just meeting customer demand – it’s about creating safer, more inclusive spaces that cater to a diverse patron base.

A legacy of responsible consumption

Ultimately, responsible alcohol consumption is a shared responsibility. It begins with awareness, education and offering the right options for people to make informed choices. For an industry rooted in community and celebration, adopting zebra-striping and non-alcoholic beer offerings isn’t just good business – it’s a meaningful way to build a legacy of care, connection and mindful enjoyment.

Beer manufacturing in Canada is both an economic and social engine for large and small communities from coast to coast. As a grain-to-glass or farm-to-table industry, brewing creates jobs at every step of the journey. At a macroeconomic level, brewing contributes to the country’s gross domestic product (GDP) more than five times that of winemaking and distilling combined.

Canada’s relationship with beer began with the first European settlers, including those from France, England, Ireland and Scotland recognizing the land was well suited for beer production. Starting with premium grains and clean freshwater, they adapted their traditional brewing techniques to sow the seeds of today’s Canadian brewing sector. Now, Canadian brewers marry the best of these old-world brewing traditions with new-world innovation to provide a range of beer styles and flavours.

Canadian vs. Foreign Content: Beverage Alcohol Categories in Canada

Beer is as intimately tied to Canada’s culture and heritage as is hockey or maple syrup. Canadians continue to have a deep love for “their beer.” Local brewers act as a community’s social hub, whether at their in-house taproom or at a neighbourhood pub. Sharing a few laughs, stories or discovering the next million-dollar idea over a beer provides a much-appreciated break from people’s busy lives.

Brewing in Canada has provided these benefits for generations of Canadians, but governments in Canada may not be doing all they need to do to ensure these benefits are available for future generations.

Beverage Alcohol Production Contribution to Canada’s GDP

In 2017, the federal government, under then Liberal Finance Minister Bill Morneau, increased federal beer excise duties by two per cent and introduced an annual inflation-indexing formula to raise rates automatically each year from then on. The cumulative effect of these increases has been a federal beer tax rate increase of nearly 14 per cent. These increases were imposed annually, even through the worst of the COVID-19 pandemic when out-of-home beer sales channels were no longer available due to the health-related closures of restaurants, festivals, professional sporting venues and similar venues.

Given that Canada already had among the highest beer taxes in the world and the highest in the G7, the impact of these punishing federal tax hikes was entirely predictable with depressed beer sales volumes and declining net federal revenues on beer sales.

In fall 2019, combined federal excise duty and GST revenues on beer sales reached $9.85 billion, but these decreased to an estimated $9.51 billion in fall 2023. While federal government revenues decreased by 3.4 per cent, beer sales volumes decreased by 9.3 per cent. Chasing ever higher tax rates while the brewing, hospitality and tourism sectors were fighting the economic challenges of a lifetime was short-sighted and misguided.

Estimated Total Beer Taxes as Percentage of Retail Price (G7)

A year ago, a huge coalition representing grain farmers, consumers, businesses, workers, hospitality and tourism sectors and brewers came together and demanded a change in policy direction. The coalition was partially successful in that Budget 2023 replaced the inflation-based scheduled 6.3 per cent beer tax increase with a two per cent increase, but it was a stop gap measure only.

Canada has seen a deteriorating market in recent months as the double punch of higher costs for almost all goods and services and higher interest rates have squeezed most family budgets to the breaking point. Discretionary items like a dinner out or a beer after work are casualties of tightening belts. A hallmark of the parliamentary system and western Liberal government is that the legislature and elected officials vote on tax measures.

This basic and fundamental role of individual members of Parliament was taken from them in 2017 and must be restored. At that time, the Senate of Canada and the chair of the House of Commons standing committee on finance vigorously opposed this weakening of the role of elected officials and of ministerial accountability. Only after a tax measure is tabled in parliament and is subjected to open debate and consultation, then voted on, should new taxes be imposed on Canadians. Morneau short circuited this process and short-changed Canadians.

Raising beer taxes by nearly another five per cent on April 1, 2024, (as is now scheduled) must be put to a vote or be set aside. Members of Parliament, of any political party, would likely oppose a beer tax hike when they take into account the following:

• Beer sales volumes remain well below pre-pandemic levels.
• 53 per cent of Canadian brewers selling less than $5 million annually were unprofitable in 2022.
• Taxes already represent 46 per cent of the price of beer in Canada, the highest rate of G7 countries.
• As of March 2023, over half of Canadian foodservice restaurants reported they were operating at a loss or simply breaking even.
• Beer is a key profit and revenue driver for licensed restaurants and pubs, generating significantly higher margins than available on food.
• The livelihoods of unionized and non-unionized brewery workers are entirely dependent on a healthy beer market.
• Tying commodity tax rates to inflation fuels higher inflation.
• Persistent high inflation puts upward pressure on interest rates.
• Canadian brewers buy 350,000 tonnes of malting barley each year valued at more than $175 million with these purchases being crucial for Canadian farmers.
• Brewing in Canada supports 149,000 jobs across its added-value supply chain and directly employs 21,000 well-paid jobs in breweries.
• Progressive tax policy should prioritize lower alcohol strength products such as beer, the typical alcohol content of which ranges between four and five per cent by volume.
• Canadian brewers need to continually invest in their facilities to remain globally competitive and leaders in environmental performance from facility water and energy use to container and packaging stewardship.

Once again, the coalition is working hard to encourage all members of Parliament to demand a debate and vote prior to any future beer tax increases.