Beers and spirits in Quebec | Hard wakeup call for the industry

There are more than 220 Quebec gins (currently) offered at the Société des alcools du Québec (SAQ) and 331 microbreweries in the province. At a time when our consumption is decreasing and we are reviewing our habits, squeezed by inflation, how can small alcohol producers get by?

At the last conference of the Association of Microbreweries of Quebec, it was announced that the number of brewing companies in the province is increasing. Again. The audience warmly applauded the news. Maxime Després, deputy general manager of Alchimiste Microbrasserie, was doubtful. “Is this really good news? “, he asks without it really being a question.

Maxime Després joined this Joliette microbrewery when Pol Brisset acquired it, in 2019. The two men believe that, in this sea of ​​beer, the small businesses that will do best are those that are rooted in their community.

Met on the terrace adjacent to their tasting room, in an industrial district of Joliette, they both admit that 2024 will not be a “sexy” year.

Not sexy, because we will not be focusing on the development of new products, but rather on a certain consolidation of the brand.

The Alchemist is fine. But its leaders are very aware that inflation has changed the habits of beer lovers and that they must adjust to this new reality.

During the pandemic, consumers only had to do, “go to the grocery store, look at the wall of microphones and discover them,” says Pol Brisset. Beer lovers suddenly found themselves with more time and more money. “The products sold themselves”, image Pol Brisset, who qualifies with this: “Attachment to the brewery was minimal. It was just a product discovery. »

Life has returned to a more normal course, with one difference: inflation and the economic context are now putting pressure on the budget, particularly that reserved for groceries and pleasures.

“The consumer has less time,” relates Pol Brisset. He returned to work at the office, he has to pick up the children from daycare. Instead of buying 10 cans of microphones he doesn’t know, he buys 4 or 5. The value of his dollar is important. He buys less and he buys better. »

Towards safe values

This is a point of view widely shared in the beer community, including by the president of the Association of Microbreweries of Quebec.

“It’s certain that beers at $9 or $10 a bottle are more difficult to come out with. People are returning to flagship products, they risk less. The budget is tighter, so they go for safe havens, beers that they are used to consuming and that they appreciate,” says Jean François Nelis, who is also co-owner of the Gaspé microbrewery Pit Caribou.

Another point of view is shared by several beer (and spirits) professionals in Quebec: the pandemic has created an artificial market for producers.

“Many entrepreneurs heard the siren song and expected a prosperous and easy industry,” says the general director of the Association of Microbrasseries of Quebec, Marie-Ève ​​Myrand. That’s not necessarily the case. »

M^me Myrand believes that there are not too many microbreweries in Quebec, because they take less than 20% of the market share. There is still room, according to her, but for serious entrepreneurs.

“15-20 years ago, you said you had a microbrewery and that was enough to sell, because there wasn’t one,” she said. Today, you have to be a good microbrewery, with products on point. You need to be well managed, rooted in your community and take care of it. »

Numerous closures announced

Microbreweries and microdistilleries are found almost everywhere in the province.

For these two industries, we expect market rationalization which will lead to closures.

Last spring, the St. Laurent distillery made a proposal to its creditors. The news shook the community. The Rimouski company has an excellent reputation; it is located a stone’s throw from the historic maritime site of Pointe-au-Père, in a new house designed by Pierre Thibault. Which also makes it a popular destination for tourists.

According to the Union québécoise des microdistilleries, a quarter of Quebec’s artisanal distilleries plan to close in the coming months. Two thirds are in deficit.

This should concern our politicians, says Hugo d’Astous, co-owner of Ubald, a distillery in Portneuf born five years ago from the desire to use decommissioned potatoes to make vodka.

According to him, certain Quebec ministries want to promote local products. “But it’s blocking Finance,” says Hugo d’Astous, who believes that Minister Eric Girard lacks vision for this industry whose companies are found throughout the territory and are quality employers.

“He doesn’t put into the equation the jobs that are created in the region,” says the entrepreneur from Saint-Ubalde.

Hugo d’Astous believes that we should, in particular, review the surcharges imposed on distillers who sell their products on site rather than at the SAQ.

There are big differences between the situation of Quebec manufacturers of beers, wines and spirits, in terms of regulations and the laws that govern them, in particular.

One thing, however, unites several: this deep desire to promote the terroir. To work with the northern climate, to create strong local businesses.

This is the speech also given by Pol Brisset, from The Alchemist.

It is for this reason that he decided to set up a terrace, in a charming industrial zone of Joliette. So that parents can come and have a drink with their children, or colleagues at the end of the work week.

The micros who succeed in developing a bond with their customers will leave with a head start, says the owner of the Alchimiste. The company is 22 years old this year, but has recently put community back at the heart of the company’s values ​​and business plan.

“The microphones must be strong locally,” says Pol Brisset. The microphone must be the pride of its region, its city, its neighborhood. »