Bar tabs may be about to rise, as heatwaves and labour shortages hit beer prices
In addition to gas at the pump, your morning cup of coffee and burger at lunch, the price of a pint at happy hour may be the latest to jump.
Massive heatwaves in western Canada and the United States this summer combined with labour shortages and supply chain issues have caused the price to produce a pint of beer to rise in recent months.
Renaud Gouin is co-owner of Avant-Garde craft brewpub in East Montreal, and he said it's become harder and harder not to raise prices on his pints.
"It's quite hard because at the same time there is so much competition right now for micro-breweries in Quebec," said Gouin. "I would like to raise my prices, but, at the same time, I have to keep my sales going, so I'm crushed between the two."
Gouin said there are around 300 microbreweries in Quebec already struggling with staff shortages, and they now have to worry about commodity prices rising.
Corn, wheat, barley and canola future prices have all gone up, according to Sylvain Charlebois, senior director at the agri-food analytics lab at Dalhousie University in Halifax, and that will affect how much it cost to create a quality IPA, lager or pilsner.
"Brewers aren't immune to what's happening and also so they are paying more for inputs as well," he said.
Barley is essential to brewing beer and a Statistics Canada estimated yield analysis shows barley production dropping by around 27 per cent in 2021, joining canola, oats, wheat and other crops whose production is likely to significantly drop this year.
Gouin added that the drought affected fruit costs which has caused the price to produce his Rouge Frambroise, Archipel Hochelaga and other fruity drafts to rise.
"And they're talking about a shortage for next year, so obviously that will affect us," he said.
Fruit costs have increased due in part to the massive heatwaves and droughts in western North America meaning craft breweries need to pay more to create their popular pints. SOURCE: Avant-Garde/Facebook
Fruit costs have increased due in part to the massive heatwaves and droughts in western North America meaning craft breweries need to pay more to create their popular pints. SOURCE: Avant-Garde/Facebook
The agri-food sector, Charlebois added, is a high volume-low margin industry across the entire chain leaving little wiggle room to cut costs.
Bar and restaurant managers and owners have spoken since reopening post-COVID-19 pandemic lockdowns of difficulties in rehiring staff or of having to pay higher wages than they did before March 2020.
"If you go retail you're likely still going to be asked to pay more for beer, but not as much as if you go to your favourite watering hole," said Charlebois. "They are likely going to charge you more for two reasons. One, to make beer is costing more and just serve that beer to you is also costing them more money as well."
Brewers, Gouin said, have not felt the price of barley's increase on their bottom line yet, but he expects that it might.
Charlebois added that a commodities prices shot up in 2008 triggered by the food-to-fuel phenomena that resulted in biodiesel and ethanol production rising. He said if the harvests in the Southern Hemisphere are good, it will help to replenish stocks in the Northern Hemisphere.
"Prices will fluctuate from time-to-time, so we're not going to run out of anything," he said. "It's just costing more for processors to get the ingredients they need to produce whatever they're producting."
Labour remains the most worrying cost at the moment for owners like Gouin. Avant-Garde, like most brewpubs, has a restaurant and taproom that requires a full staff, which has been hard to keep filled.
"That part is very hard to get staff especially for cooking and otherwise, it's very hard to recruit," he said. "The wages have gone up dramatically and we've had to adjust our price on the food cost. Everyone sees that right now, and I think it's very problematic."
CTVNews.ca Top Stories
BREAKING Israel attacks Iran, Reuters sources say; drones reported over Isfahan
Israel has attacked Iran, three people familiar with the matter told Reuters, as Iranian state media reported early on Friday that its forces had destroyed drones, days after Iran launched a retaliatory drone strike on Israel.
American millionaire Jonathan Lehrer denied bail after being charged with killing Canadian couple
American millionaire Jonathan Lehrer, one of two men charged in the killings of a Canadian couple in Dominica, has been denied bail.
Nearly half of China's major cities are sinking, researchers say
Nearly half of China's major cities are suffering 'moderate to severe' levels of subsidence, putting millions at risk of flooding especially as sea levels rise.
Prince Harry formally confirms he is now a U.S. resident
Prince Harry, the son of King Charles III and fifth in line to the British throne, has formally confirmed he is now a U.S. resident.
Judge says 'no evidence fully supports' murder case against Umar Zameer as jury starts deliberations
The judge presiding over the trial of a man accused of fatally running over a Toronto police officer is telling jurors the possible verdicts they may reach based on the evidence in the case.
Health Canada to change sperm donor screening rules for men who have sex with men
Health Canada will change its longstanding policy restricting gay and bisexual men from donating to sperm banks in Canada, CTV News has learned. The federal health agency has adopted a revised directive removing the ban on gay, bisexual and other men who have sex with men, effective May 8.
Colin Jost names one celebrity who is great at hosting 'Saturday Night Live'
Colin Jost, who co-anchors Saturday Night Live's 'Weekend Update,' revealed who he thinks is one of the best hosts on the show.
Sports columnist apologizes for 'oafish' comments directed at Caitlin Clark. The controversy isn't over
A male columnist has apologized for a cringeworthy moment during former University of Iowa superstar and college basketball's highest scorer Caitlin Clark's first news conference as an Indiana Fever player.
'Shopaholic' author Sophie Kinsella reveals brain cancer diagnosis
Sophie Kinsella, the best-selling author behind the 'Shopaholic' book series, has revealed that she is receiving treatment for brain cancer.