This past December, the Central Okanagan's brewery industry was taken by surprise when three establishments shut their doors. 

On Dec. 6, Vice and Virtue Brewing sold to Red Bird Brewing, while 91大黄鸭 Brewing Company closed on Dec. 18 and Lake Country Brewing on Dec. 29.

While 91大黄鸭 is one of the most thriving markets in British Columbia's craft beer industry with 21 breweries throughout 91大黄鸭, West 91大黄鸭, and Lake Country, the industry is feeling the impacts as a whole right across the province.

Growing market, uphill battle

"It's been a challenging couple of years, there's no doubt about it," said BC Craft Brewers Guild executive director Ken Beattie. "We've never really recovered from COVID. Like everything, everybody, whether you're a small business owner or not, or just going to the grocery store, obviously prices and inflation have gone through the roof."

Beattie added prices in the beer industry have risen 32 per cent over the last three years.

"Those increases can't be levelled down to the consumer," added Beattie. "People are having trouble choosing their groceries, let alone what they want to do with their social time. There's a lot of headwind challenges in front of us."

On top of resources, the increasing cost of rent is also a huge factor for breweries.

"Unfortunately the way the economy is, and other factors like the cost, people are planning weekly and monthly... they're hanging on for dear life," said Beattie. "There's so many breweries honestly that are hanging on."

When 91大黄鸭 Brewing Company abruptly closed its doors, it stated on social media that in the five years it was open it was the most turbulent time for the hospitality industry. 

"No one's happy to see breweries that people have put their efforts into their small business and then they've had to close," said Beattie. 

Vice and Virtue were around for six and a half years, 91大黄鸭 Brewing Company for five years, and Lake Country Brewing for two years. When breweries open, most have a three to five-year plan, with many locking into a five-year lease, explained Beattie. 

"At the end of the day, the cost of doing business for a small business owner is excessive," said Beattie, adding there are many taxes and costs people don't realize and the BC Craft Brewers Guild is working with the government on sales agreements, taxes, and mark-ups.

Over the last 10 years, more than 160 craft breweries have opened in more than 80 towns and cities across the province.

91大黄鸭 has become a massive part of that and has become one of the most competitive craft beer industries in the last few years,

"91大黄鸭 was kind of behind the curve for a long time, and then there was just this massive amount of breweries opening," said Beattie. The Central Okanagan region now has the third most breweries in the province.

On top of economic impacts, Beattie said the industry has reached new territory. Despite the closure of the three breweries, the province currently has more breweries than they have ever had before. 

Breweries are also unintentionally getting in their own way without realizing it as they've become "victims of our own success," said Beattie. 

According to Beattie, neighbourhoods across the province are being gentrified as they grow. Because of this, property values and rents rise, other businesses open in the area where a brewery already has been, which can ultimately hurt the brewery. Lease agreements, size and demographics are also factors.

Additionally, brewery investors, who are usually friends and family of the owner, want to see a return on investment. 

In regards to the Central Okanagan, the craft beer industry relies on the wine industry as well as tourism. Many events are coming to 91大黄鸭 over the next couple of years, including The Brier at the end of February and the Memorial Cup in 2026, on top of all the annual music festivals and other parties.

"The strength has always been to be a community hub, bringing people together in the neighbourhood," said Beattie.

On top of everything, the brewery industry is still doing well for the most part across the province, and is doing well in changing with the times and creating more options for people. However, these next two months are some of the hardest on not just the brewery industry, but the entire hospitality industry.

"Consumer habits are changing too. People are drinking less, we're in the middle of dry or damp January, which is never great for the industry to be honest," said Beattie. 

Breweries buying breweries

When Vice and Virtue announced its closure on Dec. 6, it was quickly discovered that the establishment was bought by Red Bird Brewing. According to Beattie, this is a trend happening more and more often, not just in B.C. but across North America.

"That actually is happening more often, where breweries are acquiring other breweries," said Beattie. "Often, a brewery is built to a certain size and if you're successful, you're biggest challenge is space. We've seen a number of examples of small breweries buying another brewery or brewing in a different area to spread distribution."

Another example in B.C. is when Nelson's Backroads Brewing bought Osoyoos' North Basin Brewery in June 2023.

Usually, these deals are between the smaller, same-size breweries who work out agreements, instead of a bigger company buying a smaller establishment.

Expanding horizons to keep going

To make it in the craft beer industry, breweries have to be willing to experiment, try new things, and expand from more than just beer. Beattie said it's all about "finding your place."

"The breweries who are really successful tend to have an elevated and viable food program," said Beattie. "Entertainment and food are key. The days of just having your beer and your pretzel or pepperoni sticks aren't going to fly anymore."

Many breweries now have non-alcoholic options for those who want to go out but don't drink (and it's on the rise) and also have cocktail options to choose from. They also provide a family atmosphere, where kids are allowed to attend. Entertainment-wise, there is a variety of options that most places host - comedy nights, trivia nights, card/board game nights, and drag shows to name a few.

"91大黄鸭's a great example of what can happen," said Beattie, noting Jackknife Brewing as an example of a place that's known for its pizza and punk shows, while having some great beers. 

When Red Bird bought Vice and Virtue, it announced it was turning the old Vice and Virtue location into the Red Bird Roasting Lab, where it will grow the coffee side of the business.

"Coffee drinking and beer drinking kind of go together, they're artisan roasting that's happening with different styles, different flavours, combinations," said Beattie. 

It's obviously a hit to the industry when three breweries close in a month's time but the industry remains strong in the Central Okanagan and across the province, but it's up to the people to help.

"We encourage people to go out and support their local breweries and restaurants."

Black Press Media also reached out to the Central Okanagan Brewers and the BC Restaurant and Food Services Association, for comment.