Ontario's Craft Beer Industry: Current Assessment and Future Directions

The micro-brewing, or craft brewing industry, is a rapidly emerging section of Ontario's economy and local food system (Agriculture & Agri-Food Canada, 2015; Beer Canada, 2016). Since the late 1980s, over 300 breweries have opened shop in Ontario. The growth of the industry is interesting for a number of reasons. The government control of beer and alcohol sales in the province has created a number of challenges for small scale brewers, challenges only now beginning to shift. Historically, the beer industry has been defined by the consolidation of three major industrial scale brewers who control at least 80% of the market. The growing craft sector has pulled local agriculture toward commercial hop production, and opened up discussion of grain sourcing and processing. The trend toward local consumption has created a broader dialogue that questions the dominant corporate and government controlled framework of beer and alcohol sales in Ontario. The industry's recent growth also appears to, in part, be related to the broader local food movement.

This paper offers an interdisciplinary discussion on the emerging industry. It relies on three major lenses to offer a current assessment of the industry and the experience a brewing entrepreneur has in Ontario at present. First, it looks at the craft brewing industry within the framework of the local food network in Ontario. Second, this paper places the small to medium enterprise (SME) network of the micro-brewing industry within the framework of the Green Economy, which sees SMEs as having a pivotal role. It also seeks to understand the role of SMEs in contributing to a low-growth, or steady-state economy as outlined by Victor, 2008. Finally, this paper approaches the industry at the individual company level, examining business practices and sustainability therein. The approach taken by this paper is useful in understanding the functional and operational challenges and successes food SMEs have in carrying out their place within the green economy and local food system.

This paper contributes a new perspective to the limited existing literature on the craft beer industry in Ontario, and by extension the emerging role of SMEs in the growing local food sector. By undertaking analysis of four distinct breweries of various life-spans and scale, it assumes some common challenges or successes the brewing entrepreneur would find in this sector. The major questions addressed in this paper are: what role do SMEs have to play in the local food movement in Ontario; what are their entrepreneurial limitations or strengths under the current system, and by extension, what are their capabilities in integrating sustainability into their business practices?

Lastly, the findings highlight patterns and trends, and offer some recommendations regarding the future of craft in the Province and some speculations on leveling the playing field of the retail sales channels systems. Results show that craft brewing entrepreneurs are committed to maintaining independence and autonomy over their businesses, are driven by passion for the craft and are mindful of growing their businesses responsibly. Many of these entrepreneurs are highly conscientious and critical of growing too large, and aim to integrate ethics and sustainability into their business practices in response to the glaring issues corporate consolidation has created for themselves and the economy.