Today in Beer Laws: No Contract Brewers at Beer Festivals

For a variety of reasons, brewers rarely participate in political discussions, and I respect the attitude of just getting on with making (hopefully) good beer. But Left Field Brewery, which opened last year in Toronto, has piped up to call everyone’s attention to another absurd piece of legislation with is stiffling the growth potential of small start-up craft brewers.

Left Field Brewery: Why we won’t be serving beer at festivals this summer

It’s a good time too. The Beer Store debate is as heated as ever and the amount of people who are going to pay attention to beer politics in Ontario is probably at an all-time high. And this latest tidbit is news to me:

It’s recently been brought to our attention by the AGCO that as a contract brewer, we’re only allowed to sell beer to three parties; The LCBO, The Beer Store and Licensed bars & restaurants. That list specifically excludes Special Occasion Permit (SOP) holders … including beer festival organizers.” – Mark & Mandie of Left Field Brewery.

The irony is that even Left Field Brewery is an SOP holder, since they’re co-hosting the dim sum festival YumCha! this weekend – meaning that they can’t serve their own beers at their own festival.

SOP holders would also cover any markets and private events on top of major beer festivals like Cask Days, which in this market of near-monopolistic beer sales are one of few ways that new breweries can get their beer into the hands of potential customers.

“Events and festivals are the single best way for us to sample our beers with the public and are one of our few opportunities to interact directly with beer drinkers.”

So what is this all about? Left Field Brewery is (for the time being) a contract brewer, which means they make their beer at somebody else’s brewery. This is actually pretty common. When I volunteered with a brewing company in Melbourne, Australia, there were at least four breweries that worked out of the same facility. It’s a reality and it’s a necessity in the craft beer world.

The cost of opening a brewery is somewhere in the $1 million area. That’s a big investment to make before you can even test out your first product. That’s why most small breweries start their lives either as contract brewers – since only the largest of brewers actually keep their brewhouse at capacity 7 days a week – or as nanobreweries like Motor Craft Ales.

For some reason it seems there’s a stigma against contract brewing. Left Field’s beer is “brewed at licensed breweries, has been lab tested by the LCBO and is consumed safely at over 60 bars and restaurants every day,” why should they be treated any differently than other brewers?

The law only serves to hurt the smallest of Ontario’s brewing companies, which seems to be a trait shared by most of Ontario’s beer laws.

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