Wednesday, June 15, 2005

Ron Moir from Hertiage on Rogers TV

Ron Moir from Heritage Brewing was on Rogers Business TV yesturday. (channel 22 in Ottawa). He was on for approximately 5-7 minutes and talked about the Craft Brewers Assoc. and its members as well as the recent announcement of government spending to promote craft beer.

What was interesting to me was that the Craft Brewers Assoc. will receive a special area within all LCBO stores to promote products brewed by members of the association. This will include a special area of the store for product placement, marketng materials, posters, etc. to help promote their offerings. This is due to roll out this summer in LCBO stores around the Toronto area and will soon make it to all locations throughout Ontario. The Beer store is still in talks with the association and he said that it's much more difficult to work out a deal with the Beer Store over LCBO but he expects something to be worked out shortly. He alluded to the possibility of a special area of the menu board in the Beer Store but the details are still unresolved at this point.

He also provided some insight into the value priced beer and how he expects it to change the market. He mentioned that since the value priced beers have been introduced, he has noticed a drop in sales, more so in lower income areas. In higher income areas the drop hasn't been quite so significant but he has noticed a difference so it is having an impact.

He added that while the cost of craft beers is more expensive, it's because of the increased people required to produce it. The large breweries can automate much of the process while the smaller ones require more hands to do the work. However, association members may be able to save a bit of money by purchasing items in bulk (bottles, labels, boxes etc.) so that would be a big help.

Good news for the crafters!

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