Hell's Basement Brewery workers on the job (Photo Courtesy Ross Lavigne)

By Darren Rathwell

The cost of suds

Small breweries crunch numbers as costs rise

Oct 27, 2021 | 4:39 PM

MEDICINE HAT, AB — A provincial organization says small breweries across Alberta are evaluating whether to increase costs, and one local operation is already planning a price hike.

“We’re doing our best to control costs, reduce costs in other areas, but at the end of the day it’s about the quality of the beer,” Mike Patriquin, co-founder of Hell’s Basement Brewery, said.

Many breweries are paying more for grain, shipping and packaging, but the impact that’s having varies depending on the brewery.

Buying in bulk and the ability to lock grain rates in for years has helped keep expenses down at the Medicine Hat Brewing Company, according to Kaiden Vancuren, GM of manufacturing and distribution.

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But Patriquin said changes to the market are “something we are thinking about more and more every day.”

The Alberta Small Brewers Association says many operations are managing with increasing market pressures for now, as the choice to pass costs onto customers doesn’t come easily.

However, a change to prices is becoming an increasing possibility.

“Some of (the breweries) are very small. Some of them are just a husband and wife team, or a couple of partners that have opened a business, possibly in Medicine Hat,” Blair Berdusco, executive director of the Alberta Small Brewers Association said. “Unfortunately, sometimes difficult decisions like that have to be made.”

Hell’s Basement will charge stores and bars more for its product come week’s end.

The company’s also hoping an expansion of sales to other provinces, and a partnership with another brewery, will help it survive.

“Changing our product mix, making more of the blended beverage, vodka blended beverages.. we’re trying to diversity our product portfolio,” Patriquin told CHAT News, adding,” We have a new beer coming out this week. It’s a collaboration with Bent Stick Brewing out of Edmonton, and it’s a sour brown raspberry ale.”

It’s a new taste on the market as some small businesses look for new ways to keep your mug full, albeit at a higher price.