Stone Angel to shutter amid craft brewing sector struggles

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This article was published 15/03/2024 (559 days ago), so information in it may no longer be current.

It’s last call for lagers and ales at Winnipeg craft brewery Stone Angel Brewing Co.

On Thursday, the company announced on social media its St. Patrick’s Day celebration March 16 would be its last. A subsequent comment said: “This will be one of our last open days. If you liked the taproom and our beer, make sure to come down on Saturday for a wonderful day. Great to see you all and say goodbye.”

The brewery owners declined to comment on the closure when reached Friday by the Free Press, noting they’d be honouring a function booked during the week and that would be it.

Stone Angel opened at 1875 Pembina Hwy. in fall 2017 with a range of British-inspired beers.

The following year, Devil May Care Brewing Co. and Kilter Brewing Co. got their start brewing in Stone Angel’s space before eventually departing to build their own breweries.

Stone Angel was part of the wave of new breweries and brew pubs that opened in Manitoba in 2016 and onwards, after the provincial government reduced red tape involved in opening new facilities for making alcohol.

Manitoba is now home to around two dozen brick-and-mortar breweries, brew pubs and contract brewers, as well as a handful of cideries, distilleries and wineries.

“I think we were kind of all a little surprised… at their announcement yesterday. There have been rumblings of something happening out there, that it certainly might be a possibility, but you hate to see it,” one local brewer, who asked not to be named, said Friday about Stone Angel’s closure.

“They were instrumental in helping some other breweries starting out. You hate to see any of our fellow craft breweries close their doors, for whatever reason — you don’t wish that on anybody. It’ll certainly make me think a little bit more about what we’re doing.”

The fallout of the COVID-19 pandemic and rising inflation have impacted craft breweries across the country, with a number of sector closures. However, until this weekend, the impact on Manitoba’s craft beer landscape had been lurking below the surface.

“It’s been a struggle for breweries North America-wide — Winnipeg is actually, I think, underrepresented in brewery closings so far,” said Tyler Birch of Barn Hammer Brewing Co. “It seems like in a lot of other places, nearly 20 per cent of breweries have closed.

“It’s really unfortunate. But since the start of COVID, there have been so many things in a row that have made it really hard for Manitoba breweries to survive and continue on in the way a lot of us want to.”

Brad Chute of the Manitoba Brewers Association notes the issues aren’t exclusive to the craft beer industry.

“It’s the same challenges a lot of local businesses are facing — inflation is hurting all the inputs,” he said Friday. “Consumers’ wallets are a lot thinner now than they were in past years. This recession is really hurting people.”

“I think beer, in general, is pretty recession-proof. But I think some people have shifted their choices from the more expensive local beer to the cheaper macro stuff. And that’s hurting us”–Brad Chute

The result, Chute said, is beer drinkers’ buying habits are changing.

“I think beer, in general, is pretty recession-proof. But I think some people have shifted their choices from the more expensive local beer to the cheaper macro stuff. And that’s hurting us. So, hopefully, when the economy turns around, we can get back to a growing market, but we’re not there yet.”

According to the Manitoba Liquor & Lotteries Corp. 2022-23 annual report, overall beer sales (including both craft and macrobrewery) were down in sales and volume, with dollar sales down 6.4 per cent — a drop attributed in part to consumers moving to the refreshment beverage category.

Despite Manitoba’s relatively recent craft beer boom (compared to other provinces) and craft brewers holding a smaller proportion of beer sales than in other provinces, Chute isn’t sure there’s room for more growth.

“Across the country, craft beer on average makes up 16 per cent of the beer market — some provinces are more, some are less,” he said. “Manitoba is sort of flatlined at 10 per cent, and we don’t really know why.

“We like to try and look at the positives — that we’ve got a lot of growth potential to get to the Canadian average, but it doesn’t seem to be moving in that direction.”

Birch sees contraction — more Manitoba breweries closing — as likely in the coming months.

“We just got an email from the head of the Canadian Brewers Association — they’re worried about the struggling industry everywhere. I wouldn’t be surprised to see a few more closed (in this province),” he said.

“When a consumer buys a beer, albeit a more expensive beer that’s brewed locally, the majority of that money stays in the province and recirculates in the economy”–Brad Chute

The best thing craft beer lovers can do, Birch said, is support local producers with their wallets.

“We’ve always just wanted to be a small local brewery — we don’t want extreme profits and volume and sales across Canada. If you want us to survive, you have to come out and drink those beers and come to the events. Otherwise, this is going to keep happening.”

Chute agreed: “When a consumer buys a beer, albeit a more expensive beer that’s brewed locally, the majority of that money stays in the province and recirculates in the economy. You can go to the breweries and see the people making the beer — they all give back, they’re big parts of their community.”

ben.sigurdson@winnipegfreepress.com