Craft brewers across Ontario seem less than excited about the Ford government's "buck-a-beer" plan.
On Tuesday, Premier Doug Ford announced that, as of August 27, the government is lowering the minimum price floor of beer from $1.25 to $1. The price floor will affect beer with an alcohol percentage below 5.6%. Ford also announced that he is also offering incentives to brewing companies, which include LCBO promotional considerations like “limited-time discounts, in-store displays on end aisles and shelf extenders, or advertising in LCBO flyers and newspaper inserts.”
But most craft brewers say there's little chance they will take advantage of the lower price floor and the marketing enticements being offered by the province.
"It's just not something we can really sustain or do," said Dave Reed, co-founder of the Forked River Brewing Company in London. "It's been 10 years since it was a buck a beer. Things have changed in a decade. We stand behind the quality of our product and we just can't compromise on that. It's a completely different economy of scale for the large brewers versus what we do on a small batch, supporting local community, local involvement in London."
Reed's sentiment seems to be a common one among craft brewers in Ontario. Tim Copeland of the Sons of Kent brewery in Chatham says he's not interested in making the kind of beer that can be sold for a dollar a bottle or can.
“We will definitely not be participating. It’s not our customer that’s going to seek out a buck-a-beer. Our customers look for a quality craft beer, one that uses quality ingredients. I can’t see anyone in the craft business being able to stay in business making a buck a beer,” said Copeland.
Neither Reed or Copeland are concerned that they will lose business to drinkers looking for cheaper suds. Both are confident their customers will keep coming back for the quality that they offer.
"I think the consumer that's out there buying a Forked River or Andersen or Co-Op, they're looking for a specific beer,' said Reed. "They want to try this beer or try that beer. It's not 'I want the cheapest beer.'"