Overview

The Ontario breweries sector is an important part of the beverage industry as it accounts for over 12% of the food and beverage manufacturing Gross Domestic Product (GDP) footnote 1. The sector is comprised of multinationals and rapidly growing craft breweries. Products are sold through The Beer Store, LCBO, grocery, brewery retail and licensees.

2020 Key indicators

In 2020:

  • the breweries sector was responsible for $1.74 million in GDP, which is an increase of $128 million over the last five yearsfootnote 1
  • there were 396 breweries in Ontario, which is an increase of 51.3% over the last five years footnote 2
  • there were $87 million in exports and $262 million of products imported into the province. The United States is our main export market, followed by Ireland and Sweden footnote 5

Ontario at a glance

Ontario is home to many breweries who add tremendous value to the domestic and international consumption of craft beers.

Cowbell Brewing Company opened in 2017, operating in Blyth, Ontario. Cowbell has been able to spearhead its recent expansion into popular craft beer styles and new hard craft beverages, such as ciders and hard seltzers footnote 96.

Labatt Brewing Company is a Belgian-owned brewery headquartered in Toronto, Ontario. Labatt Breweries of Canada have had over 170 years of brewing excellence and is a proud member of the global Anheuser-Busch InBev family. Its brands include Alexander Keith’s, Bud Light, Budweiser, Labatt Blue, Stella Artois and more footnote 97.

Molson Coors Brewing Company (MCBC) is one of the world’s largest beer makers and is one of Canada’s oldest companies accompanied by its five breweries across Canada. Products from the MCBC include Coors Light, Miller Lite, Molson Canadian, Carling and more footnote 98.

Today, Sleeman Breweries is Canada’s third largest national brewer. They offer an incredible portfolio of beer brands in Canada, including great Canadian brands such as Sleeman, Okanagan Spring, Unibroue and Wild Rose, combined with world-class beers such as Sapporo, Old Milwaukee and Pabst Blue Ribbon footnote 99.

Steam Whistle Brewing is Canada’s largest independent brewery. Located in Toronto, Ontario, it was founded by three former employees of Upper Canada Brewing Company. Steam Whistle employs approximately 194 individuals and primarily produces both a premium pilsner and a premium pale ale, and also offers specialty craft beers footnote 100.

Highlights and investment activities

In Spring 2021, Sleeman Breweries announced an $11.2 million expansion to its Okanagan Spring Brewery for capacity purposes in Vernon, Alberta footnote 101.

Ontario is providing a grant of up to $1.33 million through the Jobs and Prosperity Fund towards an overall Steam Whistle project value of $22.8 million. The project is expected to be completed by January 2024 footnote 102.

Ontario’s craft breweries are in more than 110 communities across the province, with a heavy concentration in rural and Northern Ontario footnote 103.

Today, there are over 300 craft breweries in Ontario, with the majority opening in the last 5-6-year span. They have $400 million in sales (11% of beer volume sold), $60 million invested in capital investments annually and provided over 4,400 full-time equivalent (FTE) jobs that represent 80% of all direct brewery jobs footnote 103.

Trends

Trends in this sector include:

  • craft beer gradually rising to significance in terms of share in total beer sales, channel distribution and shelf presence in the last 10 years footnote 104
  • four jobs being created in the economy for every job created in an Ontario craft brewery footnote 105
  • limited editions with unique flavours being an opportunity for Ontario breweries to experiment and collaborate with both consumers and other industry leaders footnote 106
  • hard seltzers taking the market by storm with their low carbohydrates and calories in 2020footnote 106