SPOTLIGHT ON BUSINESS MAGAZINE OCTOBER 2016
PEI BREWING CO.
Brewing is one of Canada’s oldest industries and Canadian brewers today hold an 89% share of the domestic beer market. Canada has many competitive advantages in making world class beers: such as proximity to high quality malt barley and large fresh water supply. So it should be no surprise that beer is the most popular adult alcoholic beverage in Canada, in terms of both volume and dollar value, but there has been a radical change in consumer taste preferences in the last 10 years that is affecting the way Canadians experience beer now. While we see that in the industry major brewer’s per capita beer consumption is dropping, the small and craft breweries have surged in popularity. The shift is marketing share is because of the brewing selections that are being offered and almost tailored to its customers. While we see micro and craft breweries popping up almost everywhere today, it was in Canada’s tiniest province that a small brewery took on the odds and today is an award-winning brewery, celebrating 19 years in business and considered a pioneer in the industry.
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SPOTLIGHT ON BUSINESS • OCTOBER 2016
By Charlene Boyce B etween 2009 and 2014 the number of small inde- pendently owned brew companies grew by 40 percent. In 2014, 350 of the 520 breweries existing in Canada were in the craft category type. However, in 1997 that was not the case. When the PEI Brewing Company was established by Kevin Murphy as “Murphy’s Brewing,” there were only 73 breweries in Canada and ‘craft beer’ was not on anyone’s topic of conversation let alone news worthy. In 2000, when the brewing business moved into Murphy’s newly-opened Gahan House restaurant, becoming Gahan Brewing, the number of breweries in Canada had risen to 83, a modest growth of 14 percent over 3 years. What followed from 2001 to 2005 was a period of slow positive growth, or what industry experts say was the fermentation period for the craft brewing industry because between 2006 and 2007 the number of breweries rocketed from 88 to 268. In 2008, Gahan Brewing opened an offsite location dedication to its beer production, and that was an award winning business decision that paid off. In June of 2011, Gahan Brewing received their first Gold Award from the Canadian Brewing Awards, for Sir John A’s Honey Wheat Ale proving once and for all that Prince Edward Island made beer products were not just for the
local islanders but that they could compete in the global marketplace with their products. It was shortly after this validation that Kevin Murphy and Jeff Squires, previously a principal, hockey coach and the owner of a communi- cations company, formed a partnership and rechristened the company, PEI Brewing Company. Jeff became the President and CEO and his first undertaking was the immediate development and expansion of a new brewery which was a new state-of-the-art facility featuring the latest technology available in the brewing industry, built by Diversified Metal Engineering and completed in May of 2013. But don’t think for a minute that Jeff’s eye ever left the brew, as he continued working with international beer experts, and during this time of expansion the PEI Brewing Company won Gold and Silver Medals at the 2012 Canadian Brewing Awards and a Silver Medal at the 2013 Canadian Brewing Awards.
“Craft beer is over 20 percent of the beer category now on the West coast”
“Gahan had a portfolio of beers,” notes Jeff. “Sir John
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OCTOBER 2016 • SPOTLIGHT ON BUSINESS
A’s Honey Wheat Ale, Island Red Premium Red Ale, Iron Horse Brown--now known as Iron Bridge Brown--and 1772 IPA.” “When we established PEI Brewing Company, part of the thinking was we would launch new beer brands. One of these was Beach Chair Lager, which has become synonymous with PEI Tourism.” “When we established PEI Brewing Company, part of the thinking was we would launch new beer brands. One of these was Beach Chair Lager, which has become synony- mous with PEI Tourism.” Both Jeff and Kevin take their role in PEI’s tourism industry to heart. Kevin Murphy is the principal with Murphy Hos- pitality Group, and Jeff leads the Cavendish Beach Music Festival, a record-setting event that has made the Island a destination of choice for country music fans who consid- ered the event to be one of the best in Canada. “The reality is,” says Jeff, “We have a wonderful tourism product here in PEI: the outdoors, the North Shore, our camping, cottages, water and attractions.” Award-win- ning food and drink are quickly ascending that list. The
PEI Brewing facility on Kensington Road is itself a state of the art facility that welcomes visitors to view how the all-natural and local ingredients are combined into the company’s different varieties of Canada’s favourite alco- holic drink. “This beer is entirely new to me, and was quite the lovely introduction to this Maritime brewery. The malt profile and hop profiles are quite subtle, calling to mind traditional English ambers, and is made using what I assume are pale malt, Golding and/or Fuggles hops.” The awards have continued to rack up for PEI Brewing Company’s beers. In May of 2016, Jeff’s team took home four Golds at the Canadian Brewing Awards – for Rogue’s Roost IPA, Gahan Vic Park APA, Setting Day Saison and the classic Sir John A’s Honey Wheat Ale. Jeff is pleased to share credit with his VP of Operations, Bob Lawrence, and his brewmasters. Jeff Squires says, “These recognitions are certain to help elevate the stature and increase demand for all of the company’s products as it continues its strategy to produce outstanding beer, to program and promote a unique destination brewery in Charlottetown and to grow its presence at the retail level provincially, regionally in Atlantic Canada, and nationally.” Beer bloggers, another side effect of the growing pop- ularity of craft beer, have taken note of the company’s products. Chris MacDonald of acbeerblog.ca mentions Sir John A’s Honey Wheat in defense of his choice of Char- lottetown as a Canadian craft beer top 10 destination in an article in the Globe & Mail. PEIBeerGuy.com’s blogger reviewed the grand opening of the Kensington location in 2013. And “IAmTheBeerSnob.com” gave the Island Red a 9 /10 with these tasting notes: “This beer is entirely new to me, and was quite the lovely introduction to this Maritime brewery. The malt profile and hop profiles are quite subtle, calling to mind traditional English ambers, and is made using what I assume are pale malt, Golding and/or Fuggles hops.”
its popular brews which has proven to be a solid seller.
The Craft brewing industry continue to grow all across Canada and the U.S. producing strong sector numbers in both litres of consumption and revenue as beers drinkers start to look for more from their beer than just high test or watered down light version of their marco brews to wet their whistle. “Craft beer is over 20 percent of the beer category now on the West coast” concludes Jeff. “It’s just going to continue to grow.” Looking at the numbers this is very true, with the number of craft breweries in BC expected to reach at least 130 by the end of 2016. As British Columbia continues to grow its reputation as the craft beer capital of Canada, craft brewers in every corner of the province will now benefit from an additional $10 million a year in economic support thanks to a significant reduction in the mark-up rate for craft beer products. But something tells us that Jeff and his team at the PEI Brewing Company have a plan of their own brewing to tap into this and other growing markets and soon have cus- tomer’s hopping into local pubs, taverns and beers stores for a taste of what Prince Edward Island has to offer.
Jeff Squires neither confirms nor denies the presence of Fuggles hops, but encourages you to taste for yourself.
Gahan House opened a location in Halifax, Nova Scotia in 2014, providing a fresh local market for both its house- made beer and the PEI Brewing Company’s products. The nine beers listed now on the brewery’s website are almost all available through the provincial liquor stores as well. The brewery has a taster pack product containing four of
PEI Brewing Co. 96 Kensington Rd, Charlottetown, PE C1A 7Z7 (902) 629-2739 • info@peibrewingcompany.com
www.peibrewingco.com
as spotlighted in the OCTOBER 2016 issue of SPOTLIGHT ON BUSINESS MAGAZINE
www.spotlightonbusinessmagazine.com
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