Canada, BC: Vancouver Island Brewing shutting down their Government Street brewery in Victoria

As of November 1st, Vancouver Island Brewing (VIB) will be shutting down their Government Street brewery in Victoria due to a rent hike of 35% and other cost pressures, Victoria Buzz reported on August 28.

However, they will still be producing beer via their competitor just down the street at Phillips Brewing & Malting Company.

As for the taproom, it will be closed as of September 14th.

VIB noted in their announcement that there will be no ownership structure change, internally or at Phillips.

Phillips will simply be contract brewing their beers, as they have done for many breweries throughout the years.

They say that by outsourcing production and packaging to Phillips, VIB can still ensure their core beers can still be produced.

Vancouver Islanders will still be able to find Islander Lager, Mystic Haze and Broken Islands Hazy IPA in certain liquor stores throughout Victoria.

Going forward, production oversight will be carried out by VIB’s General Manager, Thom Riley.

“After 40 years of serving the craft beer community on Vancouver Island and beyond, it was important for us to find a craft brewery whose operators also have deep, local roots and whose commitment to excellence and quality matches our own,” said Riley.

“Phillips Brewing is a recognized and respected leader in the Vancouver Island and BC craft beer sector. Their operations team consistently maintain high-quality standards, and we look forward to ensuring a seamless transition of our production in the coming months.”

According to VIB, Riley will also continue to work on new recipes in a much smaller micro-brewing space.

Because of this structure change, VIB says they will be laying off all positions in production and operations. They did not specify how many people will be losing their jobs due to the restructuring of VIB.

“While the positions we have in sales, marketing, finance and administration will continue to support the business, the outsourcing of production to Phillips will result in the most unwanted and difficult part of this transition, and that is, that the positions we have in operations will unfortunately be eliminated effective November 1st,” said Riley.

“Without question, the enduring popularity of our brands and the quality of our beers are a testament to the hard work, expertise, and dedication of our talented Brew Crew. We can’t thank these individuals enough for everything they have contributed, and our immediate priority is ensuring that each impacted person is treated with the highest level of respect, empathy and support.”

He added that VIB will be attempting to support impacted employees in finding gainful employment to continue working in the brewing industry.

VIB started making beer in 1984 and is considered to be Vancouver Island’s first craft brewery.

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