The growth of the microbrewery industry in Ontario can be attributed to the sponsorship of the development of this industry by the Government of Ontario. In Ontario, as we have seen historically and, which continues today, the provincial government exercises control over the sale, transportation, and delivery of alcoholic beverages. Support from the provincial government is required for the microbrewery industry to flourish. This is due to the fact that one of the largest segments of the retail beer industry is controlled by the provincial government through the Liquor Control Board of Ontario. The other retail location for the sale of beer in Ontario is through The Beer Store.
During the premiership of Dalton McGuinty, the government of Ontario has promoted and supported the Ontario microbrewery industry and has created several
initiatives to support its growth. Initiatives such as the Ontario Microbrewery Strategy, the creation of the Ontario Craft Brewers Association, the Ontario Craft Brewers Opportunity Fund, modernization of liquor laws, and public endorsements of the growing success of the industry have played an important role of the governmental policy.
The Ontario Microbrewery Strategy was created in 2004 and continues to support the industry with $1.2 million annually to microbreweries to assist them with their marketing strategies (Ministry of Economic Development and Innovation, 2012, May 25: Hinkson, 2013). The purpose of this strategy is to help create jobs and expand the microbrewery industry by helping small brewers explore new marketing, training, and tourism development opportunities (Ministry of Economic Development, Trade and Employment, 2013). This strategy is part of the government’s plan to build a prosperous and fair province that facilitates the business investment, job creation and economic growth (Liedtke, 2013). It works in collaboration with the Ontario Craft Brewers Association (OCB), which operates alongside the provincial government.
The OCB is a trade association that represents many of the province’s 53 microbrewers. It was founded in 2003 and promotes micro-brewed beer in Ontario, as well as develops marketing and communications strategies. Some of its promotional strategies include the OCB Discovery Pack, which is a six-pack of beer that contains beer produced by six different Ontario microbrewers. Additionally, the OCB produces advertisements in print and on radio, and more recently have created applications for iPhone and Android devices to help consumers find locations that sell and serve Ontario craft beer. While effort has been made to make craft beer more visible in LCBO retail locations, it remains an issue that craft
beer products produced by Ontario microbreweries are not prominently featured, displayed, advertised, or marketed in Beer Store locations.
The Ontario Craft Brewers Opportunities Fund was a four-year plan that provided up to $2 million per year to support the growth and development of craft beer manufacturers in Ontario. The fund was introduced in 2008 and ran until 2012 (Flavelle, 2012).
Microbreweries were able to apply for grants to undertake new projects, expand their existing facilities and activities to develop the microbrewery industry to become more competitive in Ontario markets. Ontario small brewers producing less than 300,000 hectolitres of beer annually were eligible to receive money as part of this grant. Licensed Ontario small brewers received grants of up to 6 cents per litre up to a maximum of $1 million per brewery annually. In addition, an annual amount of $200,000 was allocated to the Ontario Craft Brewers Association to support this organization’s efforts towards marketing and promotion of the microbrewery industry. (Ministry of Economic Development and Innovation, 2008).
John Hay, president of the OCB, said that out of the 53 licensed microbreweries in Ontario about 40 microbreweries took advantage of this fund. Although no longer running, while the program was in operation, it assisted with job creation and accelerating the growth of the microbrewery industry in Ontario (Ontario Craft Brewers, 2012). The cuts towards this program were reviewed in the Drummond Report, a document submitted to the Government of Ontario, which called for cuts across the province to reduce the Ontario government’s deficit. Many microbrewers have said in response to the termination of the Ontario Craft Brewers Opportunities Fund that development and growth within their industry have been stunted as a result of these cuts.
Additional efforts made by the McGuinty government have included changes to legislation. On 1 June 2011 the government passed new liquor laws that ‘relaxed’ where, when, and how alcohol could be served and consumed in public. These modernized laws essentially reduced some of the barriers to the consumption of alcohol publicly. For instance, a beer drinker familiar with the drinking rules of Ontario is likely to have seen or experienced the beer tent at a public event. The beer tent is a means of separating the beer drinker from the rest of the general population. At any type of outdoor public event where beer is being served in Ontario the rules have required that the drinker must purchase and consume their alcoholic beverage under a beer tent protected by a fence that ran the complete perimeter of the licensed area. During the consultation phase of these new modernized laws, proposals were made that would remove “the need for beer tents at events and festivals so people [could] walk around freely with drinks” (Ministry of Tourism and Culture, 2011, February 23). Ultimately, at the end of discussions, it was agreed upon that the province would maintain its beer tents at public events, but under new modernization laws, the size of these beer tents could be increased to allow for greater movement of the customers within. Other changes included allowing all-inclusive vacation packages, which permits all-you-can-drink getaways to be sold in the province. Moreover, restaurant owners and servers can now carry drinks on public sidewalks to licensed areas such as patios. Additionally, government issued identity cards, such as First Nations status cards, and Ministry of Transportation (MTO) cards, which can now be used as proof of age. Easier application procedures for SOPs allow the service of alcohol at events such as weddings and charity fundraisers, as well as extending the number of hours that permit the service of alcohol to a maximum of 2 a.m.
have also been created (Finkelstein, 2011). In addition to these changes, rules now permit business owners to give a complimentary drink to customers to celebrate special occasions.
On 2 August 2011, another set of alcohol modernization laws came into effect.
Businesses not normally associated with the food and beverage industry, such as art galleries and spas, are now eligible to apply for ongoing liquor licenses and are no longer required to apply for a SOP. However, new restrictions were also implemented as part of these alcohol modernization laws. Organizers of public events are now required to give more advance notice to municipalities, police, and local officials when there will be alcohol to be consumed during the event. Organizers are required to give 30-day notice, up from 21 days, for events with fewer than 5,000 attendees, and 60-day notice for events with more than 5,000 attendees. (Ministry of the Attorney General, 2011).
The third set of new regulations as part of this ‘roll-out’ of alcohol modernization laws took place on 1 July 2012. All of these changes involved the province’s SOPs. Former event categorizations, specified as receptions, trade and consumer shows, and market-research events, have been simplified and are now categorized as either private events or industry promotional events. These SOPs can now be issued for multiple days, as opposed to single days, and an application for a permit can now be made at any LCBO retailer.