I understand all of that. But the average craft brewers market isn't Joe Sixpack either. and yes, the economies of scale are one factor, but I also think the sheer act of doing business in ontario has to be a huge factor in price points. Everything for getting taxed on every single grain of raw material, to whatever the AGCO no doubt charges, to the LCBO loopholes to just get a product in peoples hand, to what the Beer Store charges to list. And thats probably just the tip of the iceberg.
Considering pretty much all OCB type beers are all within the same price point range (creemore used to be pretty expensice in the old 600ml packaging), there has to be a common factor there.
Perhaps the point of the blog post about the beer revolution is simply that in order to change all those variables, the brewers in the province need to slide the scale of those economies more to their favour.
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What if Ontario held a beer revolution?
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And that is what i witness as the root of the problem.
I seem to understand that local producers are at a disadvantage and that is sort of what got my rant going.dutchcanuck
Posted: Wed Aug 11, 2010 12:46 pm Post subject:
Just read the post and I think one thing that would have to change is the tax structure on beer.
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- Bar Fly
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One interesting thing Steve's speech/essay brought up is the charity aspect of a beer revolution. He talks about how his brewery plans on making over $100,000 in donations (which is of course something to be applauded) and if there was a beer revolution that could mean that total donations could over 50 million. But what I wonder is how many Ontario breweries now come close to making the kind of donations that Beau's does? I mean I kind of get the sense that most of the breweries in Ontario now probably aren’t making that level of donations.
companies tend to make donations when they are making money. how many ontario micro are $100 K in the black each fiscal year?Kel Varnsen wrote:One interesting thing Steve's speech/essay brought up is the charity aspect of a beer revolution. He talks about how his brewery plans on making over $100,000 in donations (which is of course something to be applauded) and if there was a beer revolution that could mean that total donations could over 50 million. But what I wonder is how many Ontario breweries now come close to making the kind of donations that Beau's does? I mean I kind of get the sense that most of the breweries in Ontario now probably aren’t making that level of donations.
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Fair enough, but I think that raises the question of what is a small brewery in a small town in eastern ontario doing that allows them to get $100K into the black that other breweries aren't? And why aren't more breweries copying some of Beau's business practices (which are obviously working)?matt7215 wrote:companies tend to make donations when they are making money. how many ontario micro are $100 K in the black each fiscal year?Kel Varnsen wrote:One interesting thing Steve's speech/essay brought up is the charity aspect of a beer revolution. He talks about how his brewery plans on making over $100,000 in donations (which is of course something to be applauded) and if there was a beer revolution that could mean that total donations could over 50 million. But what I wonder is how many Ontario breweries now come close to making the kind of donations that Beau's does? I mean I kind of get the sense that most of the breweries in Ontario now probably aren’t making that level of donations.
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