Canadian brewers anticipate shutdowns amid economic challenges

After nearly a decade of brewing and serving customers in East Vancouver, Chris Lee is facing a harsh reality.
On Dec. 31, Lee and his business partner, Diana McKenzie, will close their business, Callister Brewing, due to steep increases in their operating costs, particularly rent, which they say is set to increase by 45 percent.
The proposed increase would cost the city's self-described smallest brewery more than $10,000 a month.
Lee says he doesn't have that capability, so instead he's closing his business and wondering if he'll be able to open in another, smaller, more affordable space.
Callister's closure comes amid growing concern from many Canadian craft brewers, who say their already-crippling profit margins are getting tighter due to rising interest rates and production costs, including materials, packaging, taxes and shipping. Is.
"2024 will be a very difficult year for many Canadian craft breweries," said Christine Cuomo, executive director of the Craft Brewers Association of Canada. "I've heard that maybe 10 to 20 percent [of Canadian breweries] might be thinking about closing."
He and others have called on the federal government to ease some of the economic strain by expanding pandemic loan repayments for businesses and "modernizing the nation's consumption tax law" as a solution.
"We're looking at a 50 percent reduction in what small Canadian craft breweries are paying," Cuomo said. "It's going to help them invest in their factories ... and really help them stay operational through 2024 and into the future."
Differences in costs, but not for consumers
The Canada Emergency Business Facility Account (CEBA) was introduced at the height of the pandemic to help small businesses forced to close or limit their operations due to public health measures. This program offered interest-free loans backed by the federal government.

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