2.

0 Beer Industry
2.1 Industry Overview
Canadian Beer Industry is a part of the food and beverage sector which itself is categorized as a
part of manufacturing industry. Beer manufacturing in Canada dates back to pre-confederation times
when Molson, Carling and O Keefe were already in business. The beer industry is fairly stable and
follows long term secular trends rather than short term trends which are characteristic of automobile
and electronic manufacturing industries. In the decade from 1999 to 2009, the sales of goods by
Canadas beer industry improved by 15.2% despite a fall in the per capita consumption of beer. The
following table represents the net worth of beer industry in Canada and per capita consumptions in year
1999 and 2009:
Total sales of goods
manufactured ($ in
millions)
Domestic beer sales
(%age of total sales of
goods manufactures)
Per Capita consumption of
beer
Year 1999 4054.9 94.3 79.16
Year 2009 4671.2 87.4 76.45
Table 1 (agriculture and agri-food canada)
2.2 Projected Growth
The sale of alcoholic beverages saw a growth of 3% in the fiscal year ending March 31, 2012.
Beer is still the most popular alcoholic beverage in Canada, however preferences are changing and an
increased number of consumers are transitioning to wines and other spirits (Statistics Canada). This
trend can be seen in Figure 1 below

Figure 1 (Statistics Canada)
If the current trends continue in the alcoholic beverage sector then beer industry will see shrinkage in
consumer base leading to a negative impact on growth. The sales are
2.3 Geographical Location of the Industry
Two hundred and nice facilities for beer production are located in throughout Canada, with
large concentrations in Ontario, British Columbia and Quebec. In recent years a number of micro-
breweries have been established to cater market niches with speciality beer. This has further increased
the number of beer producing provinces.
2.4 Engineering Opportunities
There are a number of job opportunities available for Engineers in the Beer Industry. These
opportunities can be found directly with the beer companies or with various engineering consultancies
serving the beer industry. Major engineering employers in Canadian beer industry are Molson, Labatt
and Sleeman as can be seen from engineering job postings available online.
2.5 Employers in the Industry
Two companies own about 78% of the beer market share in Canada. These are Molson and
Labatt (Euro Monitor). The third major player is Sleeman which owns about 6% of the market share. This
market dominance naturally makes these companies the leading employers in the industry as well.
Following table gives a list of these employers and details about engineering jobs posted on their
website which I will consider applying for.

Molson Coors Most engineering jobs are available in the Operations Division
I will like to work in the facility located in Vancouver, British Columbia
Website address: www.molsoncoors.com
Molson Coors is a multi-national company with a variety of beer brands.
This makes it stable in the long run. Therefore, I will consider working for
them if I was to work in the beer industry
Labatt Brewing
Company
Labatt is a part of AB InBEV
There are current job posting for engineers in Nova Scotia and Ontario
Website address: http://www.labatt.com/?language=en
I listed Labatt as one of the leading employers because it is one of the two
biggest brewers in Canada with a portfolio of more than twenty beer
brands
Sleeman Breweries Sleeman is a part of the Sapporo Breweries
Sleeman Brewery has facilities in Ontario, Quebec and British Columbia
Engineering jobs are available in the Engineering Department in Vernon,
BC
Sleeman is the third largest brewery of Canada and therefore I have added
them to my list of employers
Table 2

2.6 Economic Factors
Beer industry has strong linkages to the agricultural sector as barely is one of the major
ingredients for beer. Canadian breweries enjoy a special benefit because of the high quality malting
barley produced in the country. This has led to a number of US and overseas breweries to sign licensing
agreements with Canadian brewers to manufacture their brands in Canada (Agriculture and Agri-food
Canada).
Beer industry in Canada is highly capital intensive when it comes to automation of breweries.
Technological advancements in recent years have allowed brewers to improve productivity and cater
the evolving tastes of consumers more efficiently. As technology continues to improve the brewers will
be able to cut more production costs and improve their economies of scale. This will also impact the
growth positively.
2.7 Regulatory Framework
The beer industry of Canada has to comply with a number of federal and provincial regulations.
These include Food and Drug Act which is enforced by the Canadian Food Inspection Agency (CFIA)and
governs the safety and nutritional quality of beer sold in Canada. Another act which regulates the
production of alcoholic beverages is the Excise Act and it imposes federal excise duty on beer at
production stage and provincial ad valorem and volume taxes(Agriculture and Agri-food Canada)..
2.8 Environment
Breweries must meet all federal and provincial environmental laws including The Canadian
Environmental Protection Act and The Canadian Environmental Assessment Act. A big problem for
breweries is the disposal of packaging material once it has completed its useful life. To offset this
problem, breweries are increasingly reducing the packaging material they use.
Another environmental factor that impacts the operation of a brewery is the amount of wash
water required and its proper disposal. Prior to any brewing facility construction, brewers need to meet
the municipal zoning requirements about the effect of the facility on local water tables and water
sources like streams and lakes.(Agriculture and Agri-food Canada).