In response to these pressures, wine grape researchers are evaluating more climate-resilient varieties and developing improved forecasting systems and disease management techniques. Meanwhile, research programs on hops and malting barley remain primarily focused on breeding climate-resilient cultivars.

Wine grapes and polar vortex events

Few sectors have felt the effects of climate instability as sharply as the Canadian wine industry. There have been devastating crop losses from “polar vortex” events, which occur when a normally stable pool of cold air over the Arctic is disrupted and plunges southward.

The Okanagan Valley, which accounts for 86 per cent of British Columbia’s vineyard acreage, experienced two consecutive polar vortex events in December 2022 and January 2024. These events were crippling, with some estimates putting the total 2024 losses at 97 to 99 per cent of all grapes in the region, amounting to an economic loss of $440 to $445 million in revenue.

Across wine grapes, barley and hops, Canadian researchers and growers are confronting the same reality: climate change is reshaping every stage of crop production.

Darien Temprile, executive director of the Canadian Grapevine Certification Network (CGCN) says that they are overseeing national research projects to look into superior grape vine material with the potential to withstand Canadian climates. This involves evaluating different Vitis cultivars, as well as clone and rootstock selections, for their vine performance, fruit composition and cold hardiness.

While CGCN does not currently manage any grape breeding programs in Canada, it ensures its certified clean repository is stocked with the best grapevine propagation material to withstand Canada’s cold temperatures.

Growing uniform barley in an unpredictable climate

For barley farmers, the main challenge is climate volatility. The Saskatchewan Barley Development Commission (SaskBarley) has between 40 and 60 research projects going on at any given time. Mitchell Japp, the research and extension manager at SaskBarley, notes that while weather variability has always existed, growers have been dealing with extremely hot, then dry, seasons. This year, farmers were still dealing with spring runoff in mid-May, leaving fields too wet for planting.

When breeding barley for climate resilience, SaskBarley funds testing sites for different varieties “across a network of sites that range from southern Manitoba, where it’s warm and wet, to southern Saskatchewan, southern Alberta, where it’s hot and dry, and up into northern Saskatchewan, northern Alberta, where it’s cool and wet. Generally, the varieties that get selected are the ones that perform and are stable across all those environments,” said Japp.

“If they can be stable across all those environments, we think they have good stability against whatever climate change might throw at us in the short term, and that’s all we can manage for. We can’t manage for what’s going to happen 50 years from now.”

Japp notes that most of SaskBarley’s investment goes into breeding new barley varieties with improved yield potential and agronomic characteristics, such as increased resistance to disease and lodging. Lodging occurs when the barley falls over from its vertical position, typically due to strong winds, heavy rain or overgrowth. It makes harvest recovery more challenging.

“We’re using a plant growth regulator to help the crop not grow so tall and have stronger stems. We’re trying to find the conditions where that’s most helpful because it’s not efficient for growers to grow their crops and then have them be difficult to harvest or lose quality because they’re lying on the ground,” said Japp. Ideally, all crops will be at the same stage at harvest, so researchers are exploring different fertility management methods to determine whether they can manipulate the development of late barley heads.

Heat waves and the future of hops

Canada’s craft beer industry exploded from approximately 400 breweries in 2010 to over 1,200 in 2025, according to data from IBISWorld, which spurred growth of the hops sector. However, only relatively small regions have suitable environmental conditions for growing high-quality aroma hops, and there is a serious risk that heat waves and droughts will stunt plant growth, shorten crop development cycles and reduce acid levels.

A research article published by Nature Communications in 2023 found that hop production in European regions is projected to decline by four to 18 per cent, while alpha content is projected to decline by 20 to 31 per cent. Hop farmers have responded by relocating hop gardens to higher elevations, changing the orientation and spacing of crop rows and breeding more resistant varieties.

At Kwantlen Polytechnic University in B.C., the NextGen Hops team says that current hop varieties grown in the province were bred and trialed in U.S. or Germany and are not adapted to grow in the B.C. climate. This is why the team is working to develop new, unique hop varieties that are proprietary to the province. At NextGen Hops, they are crossing locally adapted male hop plants with existing commercial varieties. They have also been able to transfer heat and drought-tolerant traits to their varieties by using wild hop plants collected from extreme growing environments throughout North America.

The breeding project began in 2018 and is unique in that it uses genomics to identify and mark desirable traits, then tracks those markers through successive DNA tests. Instead of waiting for a full growing season, a small leaf sample can be used to immediately identify the presence of a trait, freeing up field space and other resources.

Excessive rainfall and the rise of crop diseases

Excessive rainfall leads to a higher incidence of diseases such as powdery mildew, downy mildew and grey mould in grape vines. Viral diseases such as grape vine red blotch and leafroll are also becoming more common. Temprile says that vine infection can reduce winter hardiness by up to four degrees Celsius in some varieties. “This presents a huge gap for potential vine injury or death with Canada’s volatile temperature fluctuations,” she said.

Infected vines require more money and resources to manage, making it more difficult for wine growers to turn a profit. Ultimately, the best long-term vineyard management decision is to remove the infected vines and replace them with certified clean vines. CGCN maintains a clean vine repository that includes samples of healthy, virus-tested grape vine material. This repository is vital in protecting the global viticulture economy as it ensures that Canadian vineyards always have access to healthy vines.

Harrison Wright, PhD, an academic researcher from Agriculture and Agri-Food Canada, says climate adaptation pressures and consumer preference for fewer pesticides will push the wine industry to be more accepting of hybrid grapes (hybrids are crossings between two or more grape species).

In Canada, these crossings are usually between the European Vitis vinifera and hardy North American vines. They are naturally more resistant to diseases and pests, and can survive long-lasting cold temperatures. “Quebec would not have any wine grape industry if it wasn’t for the fact that [they] had hybrids,” said Wright.

Forest fires and smoke-tainted wine

In 2023, Canada experienced an extraordinarily destructive wildfire season. Fires consumed 16.5 million hectares – nearly seven times the historical average, according to Natural Resources Canada. Drier, hotter summers put more stress on grapes, while increased forest fires make wine grapes more susceptible to developing smoke taint.

Smoke taint occurs when grapes absorb pungent airborne compounds called volatile phenols from wildfire smoke. Once absorbed into the ripening grape tissue, these compounds bind to one or more carbohydrates found within ripening grapes. These carbohydrate-bound volatile phenols, in contrast with their smelly “free” forms, are odourless. However, when yeast is added during fermentation, it may break down the carbohydrate chain, unmasking the original smoky molecules.

Wesley Zandberg, PhD, professor at the University of British Columbia, focuses his research on better understanding the mechanisms by which smoke molecules are absorbed into the grape and how the addition of yeast unmasks these smoky aroma compounds. Zandberg stresses that smoke exposure does not necessarily mean smoke taint. “To know you have a tainted wine, it’s still a subjective thing … an oaked wine will have the same markers as a smoky wine, just at different concentrations and different ratios,” he said.

In proper concentrations, the wine would be said to have “peppery” or “oaky” notes, which are desirable, versus being smoke-tainted, where the same smoky aromas are present at too high a concentration. Currently, most wineries send samples of their wine grapes for smoke taint testing. If the concentrations of volatile phenols are too high, they can apply for crop protection insurance. In this case, they would have to destroy their crop to collect insurance for the smoke-damaged crop.

However, there is ongoing research into using sprays to create a barrier between grapes and smoke. “I’ve tested some products. In one year, it works really well, and in the other year, it doesn’t work at all. So, you know, these aren’t easy experiments,” said Zandberg.

The challenge of breeding climate-resilient barley varieties

Gina Feist, executive director of the Brewing and Malting Barley Research Institute (BMBRI), is particularly concerned about the erosion of public funding for barley breeding programs. “To breed a new variety really takes eight to 10 years, and so the dollars that are going in at this time will be funding those varieties coming out in the next decade,” said Feist.

Since climate‑impact research requires many years of data to yield meaningful insights for farmers and maltsters, long‑term investment is essential. “Farmers have a choice of growing several different crops, and they need to be profitable. We need to continue to invest in [barley] research so that it remains a profitable cropping option,” she said. Japp is quick to praise farmers for their quick adoption of new technologies such as “zero tillage,” which prevents soil erosion, and “variable rate applications,” which optimize the use of fertilizers, herbicides and fungicides in each area of the field.

Japp says the biggest barrier to adopting these climate-resilient varieties is the slow uptake by maltsters and brewers. He believes that outreach by organizations such as the Canadian Malting Barley Technical Centre is central to raising awareness of new barley varieties and driving industry demand. Across wine grapes, barley and hops, Canadian researchers and growers are confronting the same reality: climate change is reshaping every stage of crop production.

While each industry faces distinct challenges, all are racing to develop climate-resilient varieties, technologies and management strategies needed to sustain Canada’s alcoholic beverage industry.

While Canadians are used to paying taxes for goods and services, they might be surprised to learn that over 50 per cent of the sticker price on a bottle of alcohol comes from government taxes.

Understanding Canada’s alcohol taxation system is complex, as it involves multiple layers of taxation from the federal excise duty, which is levied at the point of production or import and becomes part of the wholesale cost of a product. Then there is the provincial markup rate, which varies widely from province to province.

On top of these taxes are the buyer’s sales taxes. Products with higher alcohol percentages, such as spirits and refreshment beverages, are generally taxed at a higher rate than products with lower alcohol percentages, such as beer and wine.

Both Alberta and Saskatchewan have moved to fully privatize their liquor stores, whereas other provinces still maintain government-controlled liquor stores. These government monopolies charge higher markup rates, resulting in higher retail prices for consumers. Canada’s heavy tax system and bureaucratic hurdles have pushed many alcohol brands to the brink of survival; some have introduced lower-alcohol options, while others have adapted by selling outside of the country.

Stifling craft industry growth

In British Columbia, 2025 saw 20 breweries close due to softening demand, rising costs and over-taxation. Ken Malenstyn, one of the owners of Barnside Brewing in Ladner, B.C., says the provincial markup rates are the cause of “killing B.C. craft breweries.” Malenstyn says that if the markup model were fair, craft breweries would be able to pay their employees and invest in growing their businesses by expanding distribution and setting more competitive prices. “All these things would help make craft breweries more sustainable, and to continue generating revenue for the government and hiring more employees,” said Malenstyn.

Even long-established breweries, such as Lighthouse Brewing, which operated for 27 years, have had to close permanently. “There’s something wrong when that’s happening. So, it’s not just the small guys … there’s just a lot of good operators that aren’t able to survive because they’re constantly having to put their own money back in the brewery to keep it going,” said Malenstyn.

In summer 2025, the BC Craft Brewers Guild pitched reforms, titled Protect BC Craft Beer, to reduce the tax burden on small, local producers. “For most small breweries, we’re paying 40 cents a litre for every litre we produce before we sell anything, and that’s just for the right to be in the industry,” Malenstyn said. “And for a lot of us, it could be 10 per cent of our revenue.” The Guild told Victoria News that these reforms would be revenue-neutral for the government and help save B.C. craft breweries approximately $16.3 million annually.

Classification disputes

A few years prior to launching Edna’s Non-Alcoholic Cocktails, Nick Devine envisioned a brand of alcoholic beer-based cocktails. Devine had 20 pallets worth of these canned beer cocktails manufactured by a local Vancouver brewery. At the time, the British Columbia Liquor Distribution Board (BCLDB) disagreed with Devine’s classification of the product as a beer. Beer markups are based on production volume, and for small producers producing 15,000 hectolitres or less, the markup would be 40 cents per litre. The BCLDB wanted to classify Devine’s product as a refreshment beverage, which would have significantly increased the markup rate to 73 per cent per litre.

The dispute dragged on for months before Devine was permitted to sell the inventory he had already produced. By then, the project had become a financial loss for Devine and left him feeling demoralized. Armed with the lessons he had learned from his beer-based cocktail venture, Devine later left the alcohol space and went on to launch a successful line of non-alcoholic cocktails. His experience with the BCLDB underscores how challenging it can be for new, unconventional products to navigate a system built around the long-established product classifications of the liquor distribution board.

Evolving into the low alcohol market

Olivia Lovenmark-Hay launched Duchess Cocktails in 2020 with a 12 per cent ABV bottled cosmopolitan. “With tax being 55 per cent of our shelf price, it is a significant aspect when it comes to pricing. It really makes creating a premium product or a higher quality product much more challenging because the cost of what you are selling goes up so significantly,” said Lovenmark-Hay. She is now preparing to launch a low alcohol line of canned ready-to-drink spritzes.

It really makes creating a premium product or a higher quality product much more challenging because the cost of what you are selling goes up so significantly.

Olivia Lovenmark-Hay, Duchess Cocktails

Lovenmark-Hay says that her 12 per cent ABV cocktails were “much better to sip at home … but by offering something that’s lower ABV at five per cent, [we’re] really expanding the use cases and the people who are more interested in [our] product.”

Another benefit of producing a series of lower per cent ABV drinks is the considerably lower federal excise duty. As of April 1, 2026, spirits containing not more than seven per cent absolute ethyl ABV have an excise duty of $0.358 per litre, whereas spirits containing more than seven per cent absolute ABV are $14.117 per litre. Duchess Cocktails will be able to offer their spritzes at a more cost-friendly price point for potential customers. The stark difference in excise duty rates for products below and above seven per cent ABV also underpins how these arbitrary rules dictate the types of products presented to customers in stores.

Diversifying into other markets

Nathan Flim, founder of The Fort Distillery in Alberta, has expanded his business into several U.S. states and Taiwan. Remarkably, Flim found it more difficult to get his products into other Canadian provinces’ government-run liquor stores than into the U.S. For Film, the extensive paperwork and application process for each liquor distribution board was challenging, and the small market size in some provinces made the hassle of applying not worth it. He made more revenue selling his products in the U.S. than selling to provinces such as B.C. or Ontario, where alcohol taxation is heaviest.

Dalia Kohen, the founder of Wildfolk, a brand of non-alcoholic botanical cocktails, also began expanding into the U.S. The initial process was smooth, but after Aug. 29, 2025, when the U.S. implemented tariffs that removed the “de minimis” exemption allowing shipments valued at $800 USD or less to enter the country duty-free, Kohen began having many of her shipments returned. She found that even with the correct paperwork, her products would still be sent back, often damaged and no longer in sellable condition. Kohen has since focused her efforts on growing in B.C. and Alberta.

Helping the little guy

At the Stratford-Fox Run Distillery in Ottawa, master distiller Adam Brierley says that in Ontario, the federal excise tax is indexed annually to the Consumer Price Index. Through government intervention, the tax is currently capped at two per cent per year. “Every April 1st, it becomes something that distilleries have to consider. Do we want to eat that as part of our cost of goods … or do we increase every year by the two per cent component of the excise tax year over year over year?” said Brierley.

Stratford-Fox Run Distillery has generally chosen to absorb the increase each year to avoid the perception that they are changing their prices on a whim. “Our whisky, for example, has been available for $44.95 for the last three years,” said Brierley.

On top of the federal excise duty is Ontario’s provincial markup rate of 61.5 per cent. Then there are the environmental fees, a volume levy and a 13 per cent Harmonized Sales Tax. “We all need to pay tax in one way or another in order to fund all the services that we enjoy,” Brierley admitted, but he says he would like to see the government offer more tax incentives to support smaller, local producers.

“I think if you ask any distiller in Ontario, we are all very envious of what the distillers in B.C. enjoy from their governments,” he said.

In B.C., spirit producers that use 100 per cent B.C. agricultural ingredients and maintain a production level under 100,000 litres per year can qualify as “craft distillers.” This designation allows them to avoid the standard BCLDB wholesale markup. In Ontario, there is no exemption for the use of Ontario-grown ingredients. “We get taxed the same as the big guys, whereas the cost of labour and cost of goods is going to be a lot higher in comparison,” said Brierley.

The economies of scale clearly favour larger producers, so Brierley would like to see the Ontario government implement a program similar to B.C.’s to give smaller players, such as himself, a chance to compete.

Traduit par Audrey Lemire

Les Canadiens sont habitués à payer des taxes sur les biens et services, mais ils pourraient être étonnés d’apprendre que plus de 50% du prix affiché sur une bouteille d’alcool provient des taxes gouvernementales.

Comprendre le système de taxation de l’alcool au Canada est un véritable casse-tête, car il implique plusieurs niveaux de taxation. Tout commence par le droit d’accise fédéral, qui est appliqué au moment de la production ou de l’importation et qui fait partie intégrante du coût de gros d’un produit. Ensuite, il y a le taux de majoration provincial, qui peut varier considérablement d’une province à l’autre.

À cela s’ajoutent les taxes de vente que paient les consommateurs. Les produits ayant un pourcentage d’alcool plus élevé, comme les spiritueux et les boissons rafraîchissantes, sont généralement soumis à un taux de taxation plus élevé que ceux ayant un pourcentage d’alcool plus faible, comme la bière et le vin.

L’Alberta et la Saskatchewan ont décidé de privatiser entièrement leurs magasins de vin, tandis que d’autres provinces continuent de gérer des magasins de vin contrôlés par l’État. Ces monopoles gouvernementaux appliquent des taux de majoration plus élevés, ce qui se traduit par des prix de détail plus élevés pour les consommateurs.

Le système fiscal complexe du Canada et les obstacles bureaucratiques ont poussé de nombreuses marques d’alcool au bord de la survie. Certaines ont dû introduire des options à faible teneur en alcool, tandis que d’autres ont choisi de se tourner vers des marchés étrangers.

Étouffer la croissance de l’industrie artisanale

En Colombie-Britannique, 2025 a été marquée par la fermeture de 20 brasseries en raison d’une demande en baisse, de l’augmentation des coûts et d’une taxation excessive. Ken Malenstyn, l’un des propriétaires de Barnside Brewing à Ladner, en C.-B., soutient que les taux de majoration provinciaux sont responsables de la destruction des brasseries artisanales de la C.-B.

Malenstyn explique qu’avec un modèle de majoration équitable, les brasseries artisanales pourraient mieux rémunérer leurs employés et investir dans la croissance de leurs activités en élargissant leur distribution et en fixant des prix plus compétitifs. « Toutes ces mesures contribueraient à rendre les brasseries artisanales plus durables et à continuer de générer des revenus pour le gouvernement tout en créant de nouveaux emplois », a-t-il déclaré.

Même des brasseries bien établies, comme Lighthouse Brewing, qui a fonctionné pendant 27 ans, ont dû fermer leurs portes de façon définitive. « Il y a quelque chose de profondément troublant lorsque cela se produit. Ce ne sont pas seulement les petits acteurs qui sont touchés. De nombreux bons opérateurs peinent à survivre parce qu’ils doivent constamment réinjecter leurs propres fonds dans la brasserie pour la maintenir à flot », a ajouté Malenstyn.

À l’été 2025, la BC Craft Brewers Guild a proposé des réformes, intitulées Protect BC Craft Beer, visant à alléger le fardeau fiscal pesant sur les petits producteurs locaux. « Pour la plupart des petites brasseries, nous payons 40 cents par litre pour chaque litre produit avant de vendre quoi que ce soit, et cela ne couvre même pas le droit d’exercer notre activité », a précisé Malenstyn. « Pour beaucoup d’entre nous, cela représente jusqu’à 10% de nos revenus. »

La Guilde a informé Victoria News que ces réformes seraient neutres sur le plan des revenus pour le gouvernement et permettraient d’économiser environ 16,3 millions de dollars par an pour les brasseries artisanales de la C.-B.

Litiges de classification

Quelques années avant de lancer les cocktails non alcoolisés Edna, Nick Devine avait imaginé une marque de cocktails à base de bière alcoolisée. Devine avait fait fabriquer 20 palettes de ces cocktails en conserve par une brasserie locale de Vancouver.

À l’époque, la British Columbia Liquor Distribution Board (BCLDB) n’était pas d’accord avec la classification de Devine qui considérait son produit comme une bière. Les majorations sur la bière sont basées sur le volume de production, et pour les petits producteurs produisant 15 000 hectolitres ou moins, la majoration est de 40 cents par litre. La BCLDB souhaitait classer le produit de Devine comme une boisson rafraîchissante, ce qui aurait considérablement augmenté le taux de majoration à 73% par litre.

Le litige a duré des mois avant que Devine ne soit enfin autorisé à vendre l’inventaire qu’il avait déjà produit. Entre-temps, le projet était devenu une perte financière pour lui, le laissant démoralisé. Fort des leçons tirées de cette expérience, Devine a finalement quitté le secteur de l’alcool pour lancer une ligne réussie de cocktails non alcoolisés.

Son expérience avec la BCLDB met en lumière les défis auxquels font face les nouveaux produits non conventionnels dans un système qui repose sur des classifications de produits bien établies.

Évolution vers le marché des boissons à faible alcool

Olivia Lovenmark-Hay a lancé Duchess Cocktails en 2020 avec un cosmopolitan en bouteille à 12% d’alcool par volume. « Avec une taxe représentant 55% de notre prix de vente, cela constitue un aspect significatif en matière de tarification. Cela rend la création d’un produit premium ou de haute qualité beaucoup plus difficile, car le coût de ce que vous vendez augmente considérablement », a déclaré Lovenmark-Hay. Elle se prépare maintenant à lancer une gamme de spritz à faible teneur en alcool en conserve.

Cela rend la création d’un produit haut de gamme beaucoup plus difficile, car le coût de vente augmente considérablement.

Olivia Lovenmark-Hay, Duchess Cocktails

Lovenmark-Hay affirme que ses cocktails à 12% d’alcool étaient beaucoup plus agréables à déguster à la maison, mais en offrant quelque chose avec une teneur en alcool plus faible à 5%, nous élargissons vraiment les occasions d’utilisation et attirons un public plus large.

Un autre avantage de la production d’une série de boissons à faible pourcentage d’alcool est la réduction significative des droits d’accise fédéraux. À partir du 1er avril 2026, les spiritueux contenant au maximum 7% d’alcool par volume auront un droit d’accise de 0,358$ par litre, tandis que ceux contenant plus de 7% d’alcool par volume seront soumis à un droit de 14,117$ par litre. Duchess Cocktails sera ainsi en mesure d’offrir ses spritz à un prix plus abordable pour les clients potentiels.

La nette différence des taux de droits d’accise pour les produits en dessous et au-dessus de 7% d’alcool par volume souligne également comment ces règles arbitraires dictent les types de produits présentés aux consommateurs en magasin.

Diversification vers d’autres marchés

Nathan Flim, fondateur de The Fort Distillery en Alberta, a élargi son entreprise à plusieurs États américains et à Taïwan. Il est intéressant de noter que Flim a constaté qu’il était plus difficile d’introduire ses produits dans les magasins de vin gérés par l’État d’autres provinces canadiennes que sur le marché américain.

Pour Flim, la paperasse extensive et le processus de demande pour chaque commission de distribution de vin étaient décourageants, et la petite taille du marché dans certaines provinces rendait l’effort de postuler peu rentable. Il a réalisé plus de revenus en vendant ses produits aux États-Unis qu’en les vendant dans des provinces comme la C.-B. ou l’Ontario, où la taxation sur l’alcool est la plus élevée.

Dalia Kohen, fondatrice de Wildfolk, une marque de cocktails botaniques non alcoolisés, a également commencé à s’étendre aux États-Unis. Le processus initial s’est déroulé sans heurts, mais après le 29 août 2025, lorsque les États-Unis ont mis en place des tarifs qui ont supprimé l’exemption « de minimis » permettant aux envois d’une valeur de 800$ USD ou moins d’entrer dans le pays sans droits, Kohen a commencé à voir de nombreuses expéditions retournées. Elle a constaté que même avec la documentation appropriée, ses produits étaient souvent renvoyés, souvent endommagés et devenus invendables. Kohen a depuis concentré ses efforts sur sa croissance en C.-B. et en Alberta.

Soutenir les petits producteurs

Au Stratford-Fox Run Distillery à Ottawa, le maître distillateur Adam Brierley indique qu’en Ontario, le droit d’accise fédéral est indexé chaque année selon l’indice des prix à la consommation. Grâce à l’intervention gouvernementale, ce droit est présentement plafonné à deux pour cent par an. « Chaque 1er avril, c’est une question que les distilleries doivent considérer. Voulons-nous absorber cette augmentation dans nos coûts de production ou devons-nous augmenter chaque année de deux pour cent en fonction de l’accise? » a déclaré Brierley.

Stratford-Fox Run Distillery a généralement choisi d’absorber l’augmentation chaque année pour éviter la perception d’une hausse de prix arbitraire. « Notre whisky, par exemple, est offert à 44,95$ depuis trois ans », a précisé Brierley.

En plus du droit d’accise fédéral, il y a le taux de majoration provincial de l’Ontario qui s’élève à 61,5%. S’ajoutent également des frais environnementaux, une taxe sur le volume et une taxe de vente harmonisée de 13%. « Nous devons tous payer des taxes d’une manière ou d’une autre pour financer tous les services que nous apprécions », admet Brierley, mais il souhaite voir le gouvernement offrir davantage d’incitatifs fiscaux pour soutenir les producteurs locaux plus petits.

« Je pense que si vous demandez à n’importe quel distillateur en Ontario, nous sommes tous très envieux des avantages dont bénéficient les distillateurs en C.-B. », a-t-il ajouté.

En C.-B., les producteurs de spiritueux utilisant des ingrédients agricoles 100% de la province et maintenant un niveau de production inférieur à 100 000 litres par an peuvent se qualifier comme distillateurs artisanaux. Cette désignation leur permet d’éviter la majoration de gros standard de la BCLDB. En Ontario, il n’existe aucune exemption pour l’utilisation d’ingrédients cultivés en Ontario.

« Nous sommes imposés de la même manière que les grands producteurs, alors que le coût de la main-d’œuvre et des matières premières est nettement plus élevé en comparaison », a déclaré Brierley. Les économies d’échelle favorisent clairement les grands producteurs, donc Brierley souhaiterait voir le gouvernement ontarien mettre en œuvre un programme similaire à celui de la C.-B. pour donner une chance aux petits acteurs, comme lui, de rivaliser.

There are a host of factors pushing Canadians to drink less alcohol. Inflation and rising grocery prices have forced many to cut back on luxuries, such as alcohol, to save money. Many Canadians are also prioritizing their mental and physical health, which has led to a rise in moderation mindsets such as the sober curious movement. Consumers’ focus on health and wellness has also contributed to the rise of functional beverages, drinks with ingredients that offer added health benefits.

An Ansira report, 2026 Alcohol Trends, found that alcohol consumption fell from 67 per cent in 2022 to 54 per cent in 2025 in the United States. In 2026, alcohol consumption is expected to continue its downward trend, as low- and no-alcohol beverages continue to gain a greater share of the market.

How moderation mindsets are reshaping drinking culture

Sober curiosity is when a person tries to be more mindful of their alcohol consumption and tries to reduce or stop drinking alcohol. This lifestyle change is rooted in re-evaluating society’s drinking norms, living a healthier lifestyle and embracing NA options. Younger generations, especially Gen Z, are leading this movement, as they are choosing to simply not drink alcohol.

A 2025 report on the Sober Curious Movement by Circana stated that “65 per cent of American Gen Zers planned to drink less in 2025, and 39 per cent planned to adopt a dry lifestyle not just during January, but during all of 2025.”

For Angela Hansen, the founder and owner of Mocktails – Vancouver’s first exclusive NA bottle shop – creating an entirely alcohol-free store was a deeply personal matter. Hansen struggled with an unhealthy relationship with alcohol for many years. When she quit drinking, she wanted to find NA options that could replace the routine and experience of drinking alcohol. During this period, Hansen also noticed many people in her life slowing down their alcohol consumption and saw the trend of ‘zebra striping,’ the practice of alternating between NA and alcoholic drinks, becoming more commonplace in social settings.

Hansen was blown away by the products available, but realized that an exclusively alcohol-free store like Mocktails didn’t exist in Vancouver. “I felt there was a space that needed to be filled for people to have that exclusivity and that inclusive place for people to come and buy NA products without the pressure of alcohol,” she said.

At her store, Hansen sees firsthand the changes in consumers’ drinking habits. Her customer base is diverse and includes the sober and sober-curious, people in recovery, pregnant women, new parents, and both older and younger generations. She sees the older Gen Xers like herself who overindulged in their youth and are making lifestyle changes that include not drinking anymore. Then there are the younger generations, many of whom don’t drink to begin with.

“In my generation, we used alcohol as a medication. [Now], you aren’t ostracized anymore because you are choosing not to drink. It is becoming more common not to drink or drink less,” Hansen said.

Hansen reflects on how many of her older customers have been recommended by their doctors to stop drinking or are taking medications that interact with alcohol. However, these older generations have developed a routine of drinking after work. “That kind of hand-to-mouth ritual is important to the older generation, especially,” Hansen said, so she is proud that people can come into her store and find an NA alternative that allows them to continue their routine.

Hansen says she also finds that the growing selection and quality of NA products are making it easier for consumers to make healthier choices, and that NA alternatives often taste as good, or better, than their alcoholic counterparts. She also sees NA products as contributing to more inclusive spaces. Having struggled with an unhealthy relationship with alcohol, Hansen explains that for her, going out for a drink isn’t about looking for a buzz. Rather, she is “just looking for the ritual and the taste of it and the experience.”

When she goes to a restaurant and sees NA options beyond soda and juice on the menu, it makes her feel thought of and included.

Crafting beverages for under-served demographics

When Olivia Lovenmark-Hay, founder of Duchess Cocktails, became pregnant, she quickly realized that she could no longer enjoy the beautiful cocktails that she loved so much. “I hate to say it – it sounds naïve – but all of a sudden it opened my eyes that a good chunk of the population is going to go through pregnancy and they might like an alternative,” she said.

At the time, Lovenmark-Hay was working on creating NA equivalents of her existing cocktail lineup. When she launched her NA cocktails in fall 2023, she received many messages from pregnant women and new moms who were grateful for the NA options, as they could continue enjoying cocktails without worrying about the effects of alcohol. Lovenmark-Hay specifically designed her brand with midlife women in mind. “It is an underserved demographic, and it is an audience that prioritizes quality and experience,” she said.

At the time, Lovenmark-Hay didn’t see herself represented in the products available and was motivated to create Duchess Cocktails to meet women where they were at in life. Whether they were looking to become pregnant, already pregnant, menopausal, or simply prioritizing wellness in their lives, “all these life changes dictate what they eat and drink,” she said.

Her instincts proved correct, as a report released by Circana highlighted the increasing popularity of NA drinks among American women who are pregnant or breastfeeding. “In 2023, 25 per cent of women who gave birth within the last three years had an NA drink while pregnant or nursing. In 2024, that percentage jumped to 39…,” the report stated.

Staying competitive in hybrid drinking occasions

To better meet her customers where they are at, Lovenmark-Hay is expanding the Duchess portfolio to include spritzers and sodas. Her current line-up of cocktails is packaged in glass bottles and has a minimum ABV of 12 per cent. Duchess spritzers will have a lower alcohol content and be packaged in cans for easier transportability. The Duchess spritzer and soda are meant to provide more affordable options to complement her premium offerings.

Diversifying her product offerings into low- and no-alcohol categories is also a strategic decision, as she sees consumer behaviours shifting in that direction and wants to stay ahead of the competition. Current data backs her up, as “2024 saw another year of double-digit volume growth for low- and no-alcohol in Canada. The forecasted volume… for no-alcohol beverages between 2024 and 2028 is up seven per cent” (IWSR). Growth in this category is primarily attributed to younger demographics and moderation mindsets.

Lovenmark-Hay says she isn’t too worried about NA beverages lowering the rate of alcohol consumption. She finds that consumers are instead becoming more educated about how they drink and what drink options are available to them. For example, consumers are moving towards hybrid drinking occasions where, instead of only drinking alcoholic or NA products, they may choose to enjoy both types of products on the same night, so that they won’t have a hangover the next day.

Wellness is becoming more significant in shaping consumers’ drinking habits, so “now we are just giving them an option to drink when they don’t want alcohol,” said Lovenmark-Hay. She wants her products to remove the stigma of not drinking alcohol in social settings by giving people NA alternatives that look and feel the same as alcoholic offerings. “If there isn’t a difference between what you are choosing, I think people feel more relieved and relaxed, and I think it allows people to have a good time on their own terms, which is really important in social settings,” said Lovenmark-Hay.

Why RTDs are continuing to outperform traditional categories

Globally, the ready-to-drink (RTD) beverage market is projected to grow by 116.45 per cent over the next 10 years, increasing from $35.14 billion in 2025 to $76.06 billion in 2035, according to a report from Business Research Insights. Spirit-based RTDs are particularly dominant in this category, accounting for 79.8 per cent of the total volume, according to Wine & Spirits Wholesalers of America.

Susie Goldspink, head of RTD insights at IWSR, noted in RTDs Strategic Study 2025 that the greatest opportunities for growth lie in markets where RTDs are already established, with Canada being a prime example.

The growing popularity of RTDs is due to several factors, such as their accessibility and portability. Rather than going out to a bar or gathering the supplies and ingredients needed to make a cocktail at home, consumers can simply enjoy a cocktail in a can. RTDs are also versatile and can be served in restaurants and bars or taken away for off-premises consumption. Aside from its convenience, the RTD industry is producing exciting new flavour profiles that continue to captivate consumers.

Nick Devine, the cofounder of Edna’s Non-Alcoholic Cocktail Co., has successfully merged the popularity of RTDs with the rising demand for NA beverages. His brand of NA and RTD cocktails is now sold nationally across Canada and the U.S. While the brand began locally in Vancouver, B.C., Devine says his sales revenue from the U.S. has now surpassed his Canadian sales, thanks to a partnership with Target.

Reflecting on his business’s beginnings, Devine recalls his early efforts to persuade bars and liquor stores to stock his NA cocktails in 2021. He often received confused and incredulous looks from potential buyers, who reminded him that they were in liquor establishments. Since then, the NA space has grown significantly, with more bars and restaurants now catering to NA consumers.

“There is a proper section in their menu now. You rarely saw that five years, 10 years ago, but now, all of a sudden, it is almost commonplace,” said Devine. He believes that Gen Z’s preferences for NA beverages, amplified by social media, have made not drinking mainstream. “All of a sudden it’s cool not to drink, whereas it used to be – almost twenty years ago – you were almost outcast if you said you didn’t drink,” he said.

Devine believes consumers “are coming to the realization that you can still have fun and maintain a fun lifestyle, and social lifestyle, and do it without booze. You aren’t going to have a hangover, but it’s got the body and feel of a proper cocktail, which is kind of what people want. It’s that habit. They don’t want to sit there with a sweetened sugary soda pop. They want a proper drink.”

Challenges of entering the NA and RTD categories

For those thinking of entering the low- and no-alcohol space, a major challenge is creating a beverage that mimics the taste and body of real alcohol. Edna’s Non-Alcoholic Cocktails Co. uses shrubs, concentrated syrups that contain fruit, sugar and vinegar, to mimic the bite of alcohol. They also use specially formulated extracts to add greater complexity to the flavour of their NA cocktails.

Devine’s background as a professional bartender made it easy for him to develop NA cocktail recipes. However, he found the process of adapting bar recipes into shelf-stable canned products to be a steep learning curve and had to enlist the help of a food scientist to finalize his recipes.

Another challenge cited by both Lovenmark-Hay and Devine was the difficulty of finding co-packers for their products. Devine eventually found a suitable co-packer in the neighbouring province of Alberta. Lovenmark-Hay’s search for a co-packer was far more difficult, as her packaging was too unique for most co-packers to handle. Although it would have been far simpler to change her packaging to meet a co-packer’s requirements, she was confident that her unique packaging would help her stand out from other RTD products on the market. This led her to establish her own production facility for Duchess Cocktails, where she now provides co-packing services for other brands as well.

Despite the challenges of developing her NA cocktails, Lovenmark-Hay says she is grateful for the growth of the NA sector. She notes that it has made her brand more accessible, enhanced brand awareness and created more sales opportunities. “We have people that start with our [NA products], then move into our alcohol and vice versa, so that part has been awesome in growing our audience,” said Lovenmark-Hay.

The future of NA beverages

In 2023, the Canadian Centre on Substance Use and Addiction released a report stating that “no amount or kind of alcohol is good for your health” and consuming more than two drinks per week significantly increases the risk of developing several different types of cancer. This news caused many Canadians to seriously re-examine their drinking habits. As Canadians have decreased their alcohol consumption, they have increasingly turned towards NA alternatives. In fact, 62 per cent of consumers stated that they selected foods and beverages with health in mind, according to a report by Ansira.

As a result, the functional food and beverage market is projected to grow by 10.33 per cent to $793.6 billion by 2032. With health and wellness now a consumer priority, a new category of NA drinks has emerged: functional beverages.

Functional beverages are often designed to target a specific wellness goal, such as improving immunity, focus, digestion, or energy. Beverages such as prebiotic and probiotic sodas, vitamin-infused water and beverages with adaptogens are growing in popularity as beverage producers tap into consumers’ desire to use food as medicine. Lovenmark-Hay also thinks that as consumers become more educated, the market will move towards a preference for higher-quality ingredients, less artificial flavouring and colours and more natural products.

Many younger generations are also shifting away from alcohol to cannabis as their go-to recreational substance. This has resulted in the rise of cannabis-infused NA drinks. These beverages offer consumers a discreet and smoke-free alternative to cannabis consumption. In fact, over one in four Americans plan to try these cannabis-infused drinks, with Gen Z and Millenials being particularly interested (Circana).

As consumer preferences continue to evolve at a rapid rate, Devine, Hansen and Lovenmark-Hay all agree that there is much more innovation to come in the NA beverage space, and that they are only just scratching the surface. While trends may come and go, Devine is confident that the NA movement marks a long-term shift in drinking culture.

“This is not going anywhere. This is here to stay, and I think anyone who doesn’t realize that is really missing what is going on out there. This is a movement,” said Devine.

Marcus Wiebe, founder of Dead Horse Cider Company in Manitoba, and Adam Keil, co-founder of Mountainview Brewing in British Columbia, discuss their tips and tricks for making going to markets and events easier for craft alcohol producers.

Booth design and set-up

One key element of creating a successful and eye-catching booth is incorporating elements of the brand’s physical location and atmosphere. Keil says the focal point of Mountainview Brewing’s booth is its jockey box – a portable draft beer dispensing system. Most of the jockey box cover is made of wood, which gives a rustic look to the booth display. It also helps evoke the feeling of the brewery, surrounded by woods in the rural town of Hope. In the future, Keil plans to update the jockey box cover to be a miniature replica of Mountainview Brewing. He believes that doing so will transform their jockey box cover into a natural conversation starter and attract more visitors to their display booth.

Wiebe, whose cidery is also in a rural location, echoes a similar sentiment. He says the backdrop of a display should not necessarily be more product. Instead, it should “be pictures of your taproom, vineyard or cidery, to convey your brand.” Wiebe uses markets to extend the cidery business, and so his focus is to introduce people to the brand and entice them to visit Dead Horse Cider Company. “We want to draw people to our cidery [and] to our orchards, so that they make the drive out to see us. That is the goal with the markets. [It] is to show people who we are and get them to come to us,” he said.

When Wiebe first started going to farmers’ markets in 2019, he had extravagant displays that took a lot of work to set up three times a week. Since then, he has opted for a more stripped-down look, prioritizing displays that are easy and repeatable. He stresses that booth set-up and tear-down should be something other team members can easily replicate, since, as the business grows, there may be multiple events on the same day.

Aside from making the process of setting up a display as efficient as possible, Keil tries to envision how people will interact with the booth when they approach it. For instance, if the booth is at a drink festival and drink tokens are given out, how will the tokens be taken? How will people receive their samples? It is important to consider the flow of people around the booth and build the booth display around that.

Keil has also observed the value of having something vertical on the display table and not just having everything sit flat. “That vertical piece is hugely important in catching people’s eyes. They’ll try the sample and hang around for a moment to appreciate the display,” Keil said. This vertical piece is another value-added feature that helps start conversations with potential customers. It can be as simple as a raised wooden display stand with products on it, or as complicated as Keil’s vision of a miniature replica of his brewery.

Packing and transport

When packing up for markets, Wiebe goes through his checklists to ensure that no items are forgotten. Most items already live in a specific set of bins that contain the necessary supplies and equipment for events. Having these designated bins helps to streamline the process of loading and setting up the display booth. Before loading up the van, Wiebe also tries to forecast sales so that he doesn’t bring too much or too little of his products to the market.

Supplies Wiebe considers essential include wipes for cleaning spills, a cash box, a point-of-sale (POS) system and a backup POS system for emergencies. Cleaning rags are an essential item for Keil, too. He is also sure to bring garbage bags, extra gaskets and tools for fixing the draft system.

After each market, Wiebe will debrief with his team to discuss what worked and what didn’t, so that they can improve for future markets. Even with this thoughtful planning, Wiebe has experienced some market mishaps. He’s had his vehicle break down while on route to a market and has had his tent fly up and away on windy market days. Still, he takes it all in stride and reminds himself not to “get too caught up in it and remember that it is going to be okay.”

What to bring and what not to bring

Historical sales, geography and seasonality inform much of what Wiebe and Keil decide to bring to events. Keil observes that fruited sours seem to sell better in the Lower Mainland, closer to the city of Vancouver. However, traditional beer styles seem to be favoured in the British Columbia Interior communities. After analyzing past sales in each area, Mountainview Brewing decides what to bring to events. This often results in different products being brought to events in Vancouver versus the Okanagan.

In the early days of going to markets, Wiebe brought many single 355 millilitre cans in various flavours. He quickly realized that packing, transporting and displaying so many single cans made setting up his display more difficult. He also felt that it wasn’t worth his time to only make a $5 sale. He stopped bringing single cans in favour of four-, eight- and 12-packs in various flavour combinations. This way, customers still had a variety to choose from, and the minimum spending amount was raised.

In desperate times, [markets have] helped us stay afloat.

Marcus Wiebe, Dead Horse Cider Company

Wiebe advises craft alcohol producers to “pick a number that is worth your time and don’t bring anything under that.” Since marketgoers are often eager to support local businesses, Wiebe thinks it makes more sense to raise the minimum spend at a market booth, especially since it is often the same amount of work to make a $5 versus a $30 sale.

In Mountainview Brewing’s early days, Keil brought a variety of merchandise to events, including T-shirts and hoodies. While smaller items such as branded tasting glasses and stickers proved popular impulse buys, he never sold a single hoodie. Keil reflects that it is most likely because the price point of clothes, especially hoodies, is higher, and hoodies aren’t an item that people buy in the spur of the moment. Keil stopped bringing hoodies to events, but continues to bring branded glassware and stickers.

Marketing to customers

The popular mantra, “getting liquid to lips,” holds true for craft alcohol producers when marketing their products at events. While giving out free samples of alcohol at events always entails additional paperwork and can necessitate bringing extra staff, having people taste a product is the single best way to make a sale.

Wiebe cautions against getting caught up in talking to a single customer for too long. He tries to streamline the process of handing out samples by limiting sample options. Instead of offering 10 samples and overwhelming people with choices, he limits sample options by asking pointed questions to get a sense of what a person likes to drink. “If they like to drink beer, then I know what sample I am going to offer them,” he said. Wiebe has seen people start drifting away when he spends too much time talking about all the different samples, so now he tries to just give them what he thinks they will like and lets them have their space.

Additionally, Keil notes the importance of having an extroverted and friendly manner. Rather than waiting for people to approach your booth, “invite people to come talk to you. Sometimes people are sort of just window shopping.” If you can get their attention, try to invite them over for a free sample, or make a comment that will “invite them to come and hang out for a few minutes and learn about your product. It’s kind of silly, but I think that is the best tactic.”

In terms of social media, Wiebe tries to post an image on their brand accounts to let people know what market they are in and whether any seasonal, market-only products are available. Wiebe admits that these kinds of posts can feel repetitive after a while and finds social media marketing to be a totally different landscape than it was just five years ago.

Another marketing strategy Wiebe has tried is giving customers a card for free shipping when they order online. He admits that this ‘free shipping’ card idea was a flop. Wiebe believes that since the savings from ‘free shipping’ only amounted to around $5, it probably wasn’t enough of a discount to entice people to start ordering online. Although he has yet to try it himself, Wiebe has seen other craft alcohol producers give customers a ‘free drink’ card when they bring a friend to the brewery. Mostly, Wiebe hopes to build the brand by maintaining consistency when going to markets, since showing up at the same market routinely can help the brand develop a loyal following.

Lessons learned

In the early days of going to events, Keil once brought a pilot batch of beer that was made with fresh-harvested plums. While the beer wasn’t reproducible on a larger scale, Keil was proud of it and wanted to share it with others. However, he noticed that people who tried the product were quickly disappointed when they found out that this amazing product was not available for purchase anywhere else. Now, Keil makes sure to always bring his core products and seasonal products that are available in the brewery or at liquor stores. He no longer brings these “one and done beers,” as he wants there to be the potential for a second sale.

Another lesson Keil learned is how to adapt his business in the face of changing consumer demand. When Mountainview Brewing first opened, its fruity and sour beers garnered a lot of attention, so Keil transitioned the business to producing more unusual beers that would catch people’s eye. Over the past two years, he has seen the market switch again, where their more traditional beer styles are selling year-round, so he pivoted again, putting the primary focus on core products rather than special releases.

Staffing

When staffing markets, craft alcohol producers usually look at their sales data to determine how many staff are needed. If historical data isn’t available, they will usually ask event organizers how much foot traffic is expected. For small markets where people are spread apart, one person is usually enough. Larger markets with denser foot traffic can require two people, especially if samples are being poured.

Keil says it’s important to have the right person at a market, someone who is interested and genuinely cares about the product. When training staff for events, both Keil and Wiebe bring their staff to the taproom to teach them who they are, what the brand stands for and have them sample the products.

Sales and customer experience

In terms of tools for managing sales on the go, Wiebe uses Square, since it is well-known, has an app that integrates with phones to accept payments and has standard fees. Other common POS systems include Clover, Shopify POS, PayPal and Stripe.

To connect with customers, Keil makes sure to bring business cards to events and encourages people to reach out to them on social media. In order to reduce the friction for potential customers to purchase their products, Keil created a QR code that links to Google Maps with the location of all the liquor stores that carry their products. Keil says that loading all the store locations into Google Maps and keeping the map up to date is a bit of a hassle to maintain; however, it is an extremely useful tactic to make buying their products as easy as possible.

Advice

For Wiebe, going to markets has been a huge help in growing Dead Horse Cider Company. “In desperate times, [markets have] helped us stay afloat,” he said. Nevertheless, Wiebe acknowledges it takes a lot of hustling and grinding to keep setting up and taking down the booth constantly. “There are a lot of farmers’ markets. It takes a lot of your time, a lot of your weekends, but we have had to do it to stay in it,” he said.

As well, it can take time to determine which markets and events are worth going to. Some markets can yield extremely profitable sales, while other markets are just a means to further advertise the business and introduce people to the brand. For craft alcohol producers who are going to their first market, Wiebe and Keil say that the most important thing is to be excited to be there and not be on your phone. Being part of an event is “a chance to talk to people that are your future customers. They’re the ones who matter most,” said Keil.

Kelly Mean, manager of prevention field services at WorkSafeBC and a former professional winemaker, understands how difficult navigating health and safety regulations can be for new businesses. “As someone with experience in both the alcohol industry and health and safety, I understand that navigating regulations can seem daunting at first. However, these guidelines are essential for keeping workers safe….”

Mean emphasizes that WorkSafeBC’s goal is to help employers keep workers safe by providing education and consultation, and by enforcing The Workers’ Compensation Act and Occupational Health and Safety Regulations.

Deciding who gets inspected and when

WorkSafeBC classifies breweries and wineries as moderate-risk facilities. This classification means that WorkSafeBC officers will check in occasionally, but not as frequently as they do with high-risk facilities like construction sites. WorkSafeBC Prevention Officers prioritize inspections based on data-driven risk assessments. They focus on sectors and employers where the risk of worker injury is highest.

Several factors influence these inspections, including the number of claims submitted by a facility, sector-wide claim numbers, the timing of the last inspection and concerns raised by workers, family members or the public. Even media reports can affect the priority of an inspection. As a result, a brewery, winery or distillery may receive a visit from a WorkSafeBC officer due to a report, complaint or other issue that prompts action. However, sometimes an officer might also conduct an impromptu inspection if they are in the area, regardless of whether the facility is on their list.

If an officer identifies a violation, they typically issue a corrective order that outlines the problem, provides recommendations for how to fix it and sets a deadline for compliance. If the issue isn’t resolved by the time of a follow-up inspection, the officer may issue a warning letter and even impose a financial penalty.

However, for high-risk violations that have the potential to cause serious injury or fatality, officers may immediately issue a financial penalty along with corrective orders. An example of a high-risk violation would be someone entering a confined space without proper protective measures in place.

How health and safety affect the bottom line

Health and safety measures not only keep workers safe, but also impact a business’s bottom line. Brewery and winery owners in British Columbia are required to pay insurance premiums to WorkSafeBC. This insurance protects them from lawsuits related to worker compensation for work-related injuries and illnesses.

In 2024, the industry base premium rate for breweries was $1.38 per $100 of payroll. In 2025, this rate is forecasted to be $1.36 per $100 of payroll. This projected decrease in the premium rate is good news, as it indicates that claims from the brewing industry are expected to decline.

If most breweries maintain good health and safety programs, and in turn have fewer claims, this benefits the entire industry by decreasing the industry’s base insurance premium rate.

However, an employer’s individual health and safety record also impacts the premiums they pay. An individual brewery that has injury claims above the average for the sector will pay insurance premiums that are higher than the base rate. There is no maximum on how high an employer insurance premium can be increased. Conversely, if a brewery has claims that are below the industry average, they will receive a discount on their premiums, up to 40 per cent.

Having a strong health and safety program is also a competitive advantage. Research shows businesses that make health and safety core to their culture benefit from improved worker retention. In addition to paying lower premiums, they are better able to attract talent who want to work with organizations that listen and are focused on their well-being.

Focus on risk management basics

During inspections, WorkSafeBC officers first examine what is causing injuries in the workplace. Then they take a general look at the facility and ask questions to determine what health and safety measures are in place. An example of a question the officer would ask is whether the facility has a joint health and safety committee or worker representative. Officers will also look at what programs and processes are in place to protect workers from confined spaces, and employer investigations into incidents.

Mean says that her officers emphasize risk management, which refers to the systems that an employer should automatically have in place to control or eliminate risks.

Most common injuries in alcohol manufacturing

One of the most common injury claims Mean sees is overexertion, which occurs when a person undertakes repetitive actions such as lifting grain bags. Being struck by something like a forklift or falling load, falling from a height and falling from the same level (tripping) are also common injuries. Since most craft breweries operate in small, congested spaces, hoses and other equipment make for common tripping hazards.

Brewers, winemakers and distillers work in an environment where they have easy access to alcohol. For this reason, Dave Vander Plaat, co-founder of Blindman Brewing in Lacombe, Alta., has developed clear policies regarding when alcohol consumption is allowed at his brewery:

• It is the employer’s responsibility to identify workplace hazards and put controls in place to protect employees from these hazards.
• Training must be provided whenever an employee is assigned a new task or moved to a new role.
• Employers must ensure that their employees are competent at the jobs they have been given.

Required personal protective equipment (PPE)

In the hierarchy of controls – a method of identifying and ranking safeguards to protect workers from hazards – it’s well established that PPE is at the bottom. This means that PPE should be the last thing considered when looking at how to protect workers on the job. If the hazard cannot be eliminated, substituted or managed through administrative controls, then PPE must be worn.

Mean notes that the appropriate PPE depends on the task at hand. If an employee is working with a hazardous chemical, such as caustic soda, they should consult the accompanying safety data sheet to determine the appropriate PPE.

At Blindman Brewing, which employs 22 full-time staff and 12 part-time staff, they have clear guidelines on what PPE is needed to perform each task. Brewers are required to wear long pants to avoid direct skin contact with chemicals and hot surfaces. Insulated rubber gloves are also required for certain tasks, and hearing protection is required on days when they centrifuge their beer for filtration.

Expanding mental health policies

As the importance of psychological health and safety becomes more widely discussed, Mean says that managing psychological health and safety in the workplace is as important as managing physical health and safety. A psychologically healthy and safe workplace prevents harm to workers’ mental health and promotes mental well-being. While many factors outside the workplace can affect mental health, it is an employer’s responsibility to address the factors that are within the control, responsibility or influence of the workplace.

Currently, WorkSafeBC requires employers to have bullying and harassment policies. While wellness plans for employees are recommended, they are not mandatory.

Mean says that if a worker informs their employer about a mental health concern that affects their job performance, the employer must quickly address it. If the worker gets injured as a result of being psychologically unwell, WorkSafeBC could deem that the employer provided unsafe working conditions that placed the worker in harm’s way.

Fostering a strong health and safety culture

Employers should endeavour to develop a work and safety culture where people feel comfortable reporting issues. Ultimately, creating this environment starts at the top, with management. “We make rules. We have to, but safety doesn’t come because of rules, it comes because of good safety culture,” said Plaat.

He finds that management gets a lot of traction just by constantly talking about safety. Safety becomes ingrained in employees’ minds and is simply a part of the way they operate there.

Plaat highlights two key factors that encourage his employees to report issues: First, reporting issues must be quick and easy. At Blindman Brewing, they have “two-minute, near miss” cards. Employees fill these cards out when they observe a safety issue or hazard in the brewery. These cards take less than two minutes to fill out and drop in a box. Employees don’t even have to write their names on the cards.

Second, reporting issues should never be a blame game.

“It has to be a culture of ‘we are all in this together,’ and ‘we’re trying to make things safe for everybody here.’ We don’t want to place blame or find someone to find fault with,” said Plaat.

Resources

WorkSafeBC provides a variety of industry-specific guidelines for alcoholic beverage production facilities. They also have a Prevention Information line, where employers and workers can call for answers to their health and safety questions. People can also sign up on their website to get the latest news and policy updates.

What is contract manufacturing?

Contract manufacturing is when an existing production facility, such as a brewery or distillery, enters a partnership with another business to manufacture a product on their behalf. The beverage product is sold under the other business’s brand name. These beverages are often called “shadow brands” since the business does not have its own brick-and-mortar space.

Steps to create a shadow brand

In British Columbia, Russell Brewing Company has been contract brewing off and on for six years. They usually take contracts from existing Vancouver breweries who seek to fulfil production gaps. Steve Schafer, general manager at Russell Brewing Company, outlined the steps involved in creating a shadow brand for an alcoholic beverage.

Step 1: Apply for licensing with the government

A shadow brand must register with the appropriate government bodies. In B.C., these are the B.C. Liquor Distribution Branch and the B.C. Liquor and Cannabis Regulation Branch.

Schafer says that the shadow brands Russell Brewing works with are required to apply for their own manufacturing licenses. This may seem counter-intuitive since the shadow brand is not actually manufacturing anything. However, the manufacturing license allows the products to be registered under the brand owner’s license rather than the production facility’s license, and the shadow brands retain proprietary ownership of their products.

Schafer estimates that applying for a manufacturing license can take 18 to 24 months, and says that the process is more difficult for brands that don’t have a manufacturing facility. He notes that establishing a shadow brand for alcoholic products is quite an investment, since the production and distribution of alcohol is heavily regulated by the Canadian government.

Step 2: Fully develop the drink recipe and brand concept

What type of drink will be made? Will the drink be packaged in cans or bottles? What makes the drink unique? These are just some of the many questions shadow brands need to answer when developing a product. A shadow brand should have a clear vision of their product before approaching contract manufacturing facilities since it is difficult to make changes to a product once manufacturing begins.

Step 3: Find the right contract manufacturer for the product

No two contract manufacturing facilities are the same. Some facilities have bottling equipment, while others only have canning equipment. Shadow brands need to find a manufacturing facility that can produce the product they envision.

Along with ensuring that the facility can produce their product, the shadow brand will need to determine if the manufacturing facility can produce their beverage at a cost that enables them to make a profit. The cost of manufacturing is highly dependent on production requirements. For instance, ready-to-drink products, such as canned cocktails, usually only require mixing and can be packaged within a few hours.

Beer, on the other hand, requires brewing, mashing and fermenting, spanning several weeks to produce. Fermenting beer also requires tank storage. All these factors add to manufacturing costs. The size and production parameters of the manufacturing facility will also dictate the minimum order quantity.

Step 4: Negotiate the terms of the contract and sign it

A shadow brand must determine the details of their contract with the manufacturer. For example, some shadow brands purchase their own labels, while others will ask their contract manufacturer to purchase labels on their behalf. Manufacturers may be able to get a better deal since they order in bulk and often have larger discounts with suppliers.

Another important detail to consider in the contract is where the product will be stored. Contract manufacturers may be able to store the finished product for the shadow brand if they have the space, or the shadow brand may need to arrange for another storage space. Keep in mind that alcoholic products must be stored in a bonded warehouse. Shadow brands can apply for a bonded warehouse or hire another company to store and distribute their product.

Step 5: Get the drink into liquor stores

Once the beverage is manufactured, it’s time to get it into liquor stores. Shadow brands can hire liquor brand representatives to approach liquor stores to carry their product. When first approaching liquor store managers, bring product sell sheets or product samples to help managers decide whether they want to carry the product. Keep in mind that liquor store owners often ask for free bottles or additional perks for purchasing the product.

Establishing a good rapport with liquor store employees and managers may help sell more products, since employees can recommend the product to customers. This in turn can lead better shelf placement for the product. Generally, products placed at eye level tend to sell better than products placed very high or very low.

Step 6: Sell to customers

The work has only just begun once a shadow brand gets its product onto liquor store shelves. They will need to develop a marketing plan to spread the word about their amazing new product. This can entail creating a website and social media accounts for the brand. They can run online ads and promotions for their beverage, set up a booth at farmers’ markets and offer free tastings at liquor stores. It is all about getting the product in front of people and converting them into paying customers.

Step 7: Rinse, repeat and grow!

Once a shadow brand starts making sales and they are confident the product will continue to sell, they can go back to their contract manufacturer to make more product. As the drink brand continues to grow, they may even think of establishing their own brick-and-mortar manufacturing facility.

Weighing the pros and cons of starting a shadow brand

Establishing a shadow brand is a safer and less expensive way to start a drinks business. The main benefits for contract manufacturing a product are the cost savings and required expertise to operate a manufacturing facility.

“[Shadow brands] are not putting up the money to build and facilitate production, but at the same time they have to pay for that,” said Schafer. “Either they are paying perhaps more than they hoped, and their margin is shrinking and they’re getting [more] quality, or they can pay less and not get the quality that they were expecting…. It is a balance of cost versus quality.”

Shadow brands are also reliant on contract manufacturers to have the capacity to produce their products. During the busy summer season, manufacturing facilities may be operating near or at maximum capacity. So, either they might not be able to get their product made, or the price goes up compared to slower months when the facility has spare capacity.

Successful shadow brands usually transition from using a contract manufacturer to owning their own manufacturing facility over time, since owning a manufacturing facility allows the brand greater quality control, more reliable production schedules and higher profit margins.

Overall, contract manufacturing is an excellent way to test a drink concept, and to determine whether it is worth investing more time and effort. 

Kristine Hui is a professional distiller who has made whisky, gin and liqueurs in distilleries in the U.K., India and Canada. She helped to develop a rum recipe, which won a Silver medal at the 2021 International Wine and Spirits Competition. Most recently, she appeared as a contestant on Moonshiners: Master Distiller on the Discovery Channel. She is best known as Miss Brewbird on YouTube, where she documents her work in fermentation.