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  • Permalink for 'A_Good_Beer_Blog/2012/01/13/When_Do_Good_Beer_And_Public_Money_Mix_'

    When Do Good Beer And Public Money Mix?

    Posted: January 13th, 2012, 1:50pm CET by Alan McLeod

    I like beer as much as the next guy. Probably more. But I am not sure why one of Ontario's, frankly, less interesting brewers deserved $1,000,000 in tax support annually:

    ...until a few years ago, few Ontario consumers knew or understood the concept of craft beer. All that changed in part due to an $8 million provincial program that Ontario’s smallest brewers learned this week will not be renewed, another victim of the government’s sweeping deficit-slaying measures... The move will have the biggest impact on Brick Brewing Co. Ltd., which disclosed in a statement Wednesday that the program would not be renewed. The Waterloo-based brewer, known for its discount Laker and premium Waterloo brands, received up to $1 million a year under the four-year program. The publicly traded company said the loss of the program would have a material impact on its financial performance.

    Full disclosure. I get income from advertising, including that little Ontario Craft Brewers crest to the left. I expect the money for that comes from the other fund, the 1.2 million marketing program. I think I have received 0.1% of that. Spreading the message through all media broadly seems to be a good thing to me but you can judge that for yourself. While you are at it, consider also how other brewers, other Ontarians might take the news that 1/8th of a fund of that scale went to one out of fifty brewers. One whose stocks you can buy on the stock market. The concerning thing is that the firm's financial indicate the subsidy represents a significant portion of profitability.

    It will be interesting to see now what the lack of this part of their revenue will mean for corporate stability. Either way, there will be lessons to be learned.