Calgary’s Big Rock Brewery to restructure amid industry troubles

Big Rock Brewery in Calgary is looking at restructuring to increase revenue and tackle losses amid industry troubles.

Though revenue was up in 2022, the 38-year-old brewery took a loss due to inflation and supply chain issues; however, its CEO Stephen Giblin says they have since launched a review to start looking at cost reductions and refinancing.

“So, in 2022 we had losses, as I express with some of the supply chain, inflation, and other issues facing the industry. But we have good revenues,” Giblin said. “So, we’ve organized ourselves and worked with all of our suppliers and vendors, to reduce our costs, improve our productivity, and we’re rolling out a series of new products that we think are going to be fun and exciting for the market.”

Giblin adds interest rates are not helping that much, as their company strives to reduce debt. He also hopes taxes won’t go up so high.

“I think the consumer doesn’t want to pay our taxes. But we knew we’re gonna get some type of increase,” Giblin said.

Great people with great ideas is what gives Big Rock the motivation to defeat the rising costs of operating its business.

“Overall, our entire group of people, we still employed roughly the same number of people we had in 2022. We’re planning for that in 2023,” he added.

Regarding the restructuring strategy, the brewery is looking at producing “a lot” of its traditional beers, in addition to introducing new ones.

“We’ve also introduced some brand new beers. … And we look for new products that we’re rolling out in the next couple of months that will be equal or is as good or better tasting than some of those,” he said.

“But I do have to say I’ve spoken to a lot of our customers and we will never change the recipes for traditional or grasshopper, because I think half of Calgary would come storming to our plant.”

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Blair Berdusco, executive director of the Alberta Small Brewers Association, says most of the breweries in Alberta are young businesses, and the pandemic didn’t help them grow, as costs went up about 30 per cent in the last two years.

“As we’re coming out of COVID, we see an average of of about 30 per cent inflation costs on breweries,” Berdusco said.

She adds though the government lowered the tax on alcohol to 2 per cent, the tax, which she calls the inflation cost, might increase by April 2024.

Berdusco encourages Albertans to support local businesses.

“Alberta breweries face a unique market in that anyone else who wants to sell in Alberta from outside of our borders is welcome to do so. It’s a simple process, but Alberta manufacturers being able to get into other provinces, can be very, very challenging,” she said.

— With files from Lisa Grant