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Peak beer? Is the craft beer bubble about to burst?

  • CBC
  • |
  • Dec 14, 2017
Peak beer? Is the craft beer bubble about to burst?

Consumption trends say Canadians are drinking less beer now than in previous years. However, there has been an explosion of smaller-scale craft breweries across the country. In fact, the number of new breweries in Canada has more than doubled over the past five years to nearly 800.

Ivey professors Larry Plummer and Andreas Schotter have been studying this Canadian brewing phenomenon, including writing a teaching case focusing on the experience of the Forked River Brewing Company in London, Ontario.

"The data would show that we are actually starting to achieve or reach peak beer, or market saturation," says Plummer. "I don't think the [growth] is sustainable... If you assume each of those breweries is going to be offering at least 10 to 20 beers — some of them are offering as many as 50 — you're talking about a really crowded market space for new entrants to be competitive."

The CBC recently featured Ivey's beer industry research in feature stories on its TV, radio and online platforms.

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