KV craft brewers all smiles despite congested market for now

Around 2013, when the owners of Long Bay Brewery and the Foghorn Brewing Company were developing their respective business plans, you could count the number of New Brunswick craft beer operations on two hands.

When they opened Foghorn in 2016, Long Bay in 2017 the number of breweries in the province had soared to about 30.

Today, there are more than 50.

In the Kennebecasis Valley alone, at least four breweries opened stores within the past three years all within a few kilometres of each other.

"At first glance it's intimidating because the population isn't massive," said Foghorn co-owner Andrew Estabrooks of the neighbouring towns of Rothesay and Quispamsis and their combined population of roughly 30,000.

"But we could not ask for better and more faithful craft beer drinkers and enthusiasts in this area."

Despite the saturated local and provincial markets, Estabrooks and Long Bay owner Sean Doyle are happy to report that their businesses and the overall industry are doing well, so far.

"We don't have beers sitting on the shelves," Estabrooks said. "And that's a good thing."

Both breweries are mulling expansion. Doyle said he's looking to increase his output, and Estrabrooks said a brewery expansion could double his workforce to seven employees.

The local breweries are being celebrated during the first KV Craft Beer Week, which runs through Tuesday. A beer fest is set for Saturday at the qplex in Quispamsis.

Sales increase

Consumers have enabled the sharp industry growth. Craft beer sales continue to rise, according to NB Liquor.

In 2016-17, New Brunswick craft beer accounted for 3.3 per cent, or $6.41 million of total beer sales, which were$193.2 million that fiscal year.

In 2017-18, craft beer sales jumped to five per cent, or $9.95 million, of the $198.4 million in overall beer sales.

In 2018-19 with March still to come craft beer took a larger percentage of overall sales. Of $180.5 million so far in sales, 6.4 per cent, or $11.52 million, was craft beer.

Estabrooks said the variety of beer styles offered by craft brewers, who are more likely to experiment, has attracted beer drinkers, but the push to buy local can't be understated.

At their taproom, the Foghorn folks get quality face time with customers.

"You know people by name, you know their families, you know everything about them, and it's part of that resurgence where people want to know their butcher, people want to know where their produce comes from," he said.

"It's kind of nice to see where your beer comes from, who made it and exactly what we put in it."

Uncertain future

But the future is uncertain. For breweries that are dependent on NB Liquor sales and shelf space, like Long Bay, each new market entrant further congests the market, said Doyle.

"When a new one comes out and their bottles hit the shelves, we certainly see it," the Long Bay brewer said.

Doyle is among the many brewers calling for improved access to other New Brunswick markets, such as agency stores, and other provinces.

Both Doyle and Estabrooks said without improved access, the good times aren't likely to last.

"There are only so many breweries the province can hold," he said. "I don't know what that number is, but it's probably time to hold off and see where this market goes."