NuBrew stops canning, blames regulatory changes
Territorial government now scales beer prices to alcohol content, making stronger drinks more expensive
Jordan Kennedy, interim general manger of Nunavut Brewing Co. Ltd., leans on the canning machine, which stopped running in August. A new pricing formula made canned beer economically nonviable for the business, Kennedy says. (Photo by Daron Letts)
Nunavut Brewing Co., the sole local brewer in the territory, has stopped canning its beer after the territorial liquor commission made changes to the way it prices alcohol.
The markup applied by the Nunavut Liquor and Cannabis Commission to NuBrew beer used to be 76 per cent less than what’s applied to beer imported into the territory. As of June 1, that difference was reduced to 40 per cent less.
“The difference between our markup and the big brewers like Anheuser-Busch has shrunk,” said Jordan Kennedy, interim manager of Nunavut Brewing Co.
“Those big brewers do not provide anything to this territory. They don’t pay payroll taxes. They don’t pay property taxes. They don’t employ people. They don’t contribute to the local economy like we do.”
Kennedy said he first learned of the the cost increase when a customer complained about an approximately $120 price hike to a keg of the company’s beer purchased through Iqaluit’s beer and wine store in late July.
Kennedy said when contacted the commission at the end of the summer, the response was a suggestion the brewery reduce the alcohol content in its products.
That’s because one of the changes Nunavut Liquor and Cannabis Commission made to its price structure is it started scaling its prices according to a product’s alcohol content.
Previously these markups were applied on a per-litre basis. Now, a 355-millilitre can of beer at 3.5 per cent alcohol by volume, such as a Corona Light, carries a standard markup of $1.46. A six-per-cent beer of the same size carries a $2.50 markup.
Nunavut Brewing Co. Ltd.’s core brands include Floe Edge and Aupaqtuq Red Ale, which are five per cent alcohol content by volume, and Frob Gold Strong Ale at 6.8 per cent alcohol.
Kennedy added he was disappointed that the brewery was not consulted in spring or early summer, in advance of the sealift season.
“That’s when you need to figure out what you need to bring up,” he said. “Then all of a sudden we’re hit with these changes.”
Lewis MacKay, director of the Nunavut Liquor and Cannabis Commission, said such consultation is not standard regulatory practice.
“Our key message is that this is a harm reduction initiative,” MacKay said in an emailed statement. “This encourages Nunavummiut who choose to drink to choose products with lower alcohol content.”
For now, these changes limit Nunavut Brewing Co.’s ability to raise prices to cover the cost of inflation, further cutting into the company’s profit margin. Which means the brewery is sticking to its standard beer recipes and its decision to cease canning operations, Kennedy said.
“If the government comes back to us with an option that is equal to what we’ve previously had we’d certainly consider opening up the canning line again,” he said.
“This encourages Nunavummiut who choose to drink to choose products with lower alcohol content.”
Bunch of baloneyy. Maybe in Iqaluit, but go anywhere where you gotta pay cargo, it is MUCH cheaper to buy liquor than beer. 24 corona in north baffin will run you damn near 300 bucks. 60 of hard liquor barely 150 bucks. 24 drinks for 300 or 60 drinks for 150? Based on this logic we NULC should be subsidizing freight on light beer.
“This encourages Nunavummiut who choose to drink to choose products more similar to Horse Urine.”
If that was the case, NuBrew’s sales will increase!
Beer store not liking the competition.
“This encourages Nunavummiut who choose to drink to choose products with lower alcohol content.”
lol if this was true then orange juice wouldn’t be 4X as expensive as a regular alcoholic beer. Dumb reason is dumb.
I suspect that this comment will be very unpopular with readers but I’m going to make it anyway. I’ve never liked the idea of a commercial brewery in Nunavut and I’ll tell you why: Nunavut historically has and continues to be a place that has been uniquely ravaged by alcohol abuse. No other jurisdiction in Canada has struggled with this as much as this place. The societal damage caused by alcohol in terms of ruined lives and impoverished families has been staggering. There’s no other way to describe it as simply tragic. With that backdrop in mind, why on earth would anyone in Nunavut support the commercial manufacturing of an alcohol product here?? Is that the kind of business that we want our entrepreneurs to building??? Brewing an alcohol product?? That’s what we want to be known for in other provinces and beyond?? A brand of beer?? That’s beyond inappropriate for me.
Don’t get me wrong, I’m completely against banning alcohol in Nunavut. That doesn’t solve the problem. It doesn’t educate people to drink responsibly and only benefits the bootleggers. I am for the beer and wine store. But, at the same time, I acknowledge the unspeakable harm caused by alcohol here. Consequently, I think it’s so inappropriate that a commercial brewery has set up shop in our territory, and has been making an exporting a Nunavut brand of beer.
Nunavut should be known by the rest of Canada and beyond for things other than a brand of beer in my humble opinion. Hope that brewery finally shudders.