Another Metro Vancouver craft brewery is struggling with rising costs and flat sales.
Michael Hodgson launched CowDog Brewing in March, taking over the East Vancouver location formerly operated by Callister Brewing.
But just two months into the gig, Hodgson said the company is just hanging on.
Hodgson said inflation and the rising cost of living is forcing more people to re-think spending a little more on craft beer as they consider their bottom line.
“It was busy, we’ve had ups and downs, so it’s been a struggle,” he said.
“People were coming in quite regularly and then it fizzled out.”
Hodgson recently took to Instagram to make his case, posting a video where he told customers the business was having a hard time moving enough product to cover costs.
“If you like what we’re doing, you like the beers we’re making, and you like the beers we promised you, then we need people to start showing up,” he said.
While Hodgson’s brick-and-mortar location is new, he’s been brewing for several years — selling products directly to bars and retailers.
While he admits he’s struggled with the social media and marketing aspects of the business, getting word out about the new location has been a challenge.
Cowdog’s situation is far from unique in B.C.’s hospitality industry, which has struggled to rebound first from the COVID-19 pandemic, then from surging inflation.
The B.C. Restaurant and Foodservices Association said in January more than half of the province’s restaurants were in the red amid the rising costs of supplies combined with customers’ shrinking disposable income,
Add to that the trend of Canadians drinking less, and the Canadian Craft Brewers’ Association says the most recent data suggests nearly two-thirds of breweries aren’t turning a profit.
Ken Beattie, executive director of the B.C. Craft Brewers’ Guild said it can be a difficult business to succeed in, particularly for those new to the industry.
“There is so much more to it than just brewing beer, it’s getting the beer around the province which is super difficult, it’s about getting listings, it’s highly, highly competitive,” he said.
“As collaborative as we are, there’s 225 other breweries that want your business. So people when you get into it sometimes they get surprises.”
It’s also a highly regulated industry with multiple overlapping tax structures.
Beattie said it’s not surprising to see contractions in the market, particularly during tough economic times. But he’s also optimistic about the future of the B.C. industry, which has become globally recognized and now drives tourism and community spirit.
“We are a world-class beer destination, there is no doubt about it,” he said.
Back at Cowdog, Hodgson has no plans to give up easily.
The business is planning a grand opening event for May 26, where guests will be invited to help paint a mural on the brewery wall, and Hodgson is hoping community support can keep things bubbling.
“If we get 40 people a day buying two pints of beer I am fine,” he said.
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