Canada: Beer sales by volume down 4.5% in 2023/24

While the so-called "Beerpocalypse" can be blamed more on Covid than overall interest in beer, sales have fallen. Americans are drinking slightly less beer, and craft brewery sales have fallen as well, TheStreet reported on July 15.

"Overall U.S. beer production and imports were down 1% in 2024, while craft brewer volume sales declined by 4%, slightly reducing small and independent brewers’ share of the U.S. beer market by volume to 13.3%," according to data from the National Brewer's Association.

Declining beer sales are not just an American thing. Canada, which has a strong reputation as a beer-drinking nation, has seen a drop in liquor consumption overall.

"Liquor authorities and other retail outlets sold C$26.2 billion worth of alcoholic beverages in the fiscal year ending March 31, 2024, down 0.1% from fiscal year 2022/2023. The decrease in alcohol sales occurred despite a 2.5% increase in the price of alcoholic beverages in stores from March 2023 to March 2024," according to the Canadian government.

The drop in sales, however, is alarming for those in the industry.

"On a volume basis, sales of alcohol declined by 3.8% to 2,988 million litres in 2023/2024. This was the largest volume decline ever recorded since Statistics Canada began tracking alcohol sales in 1949. On average, Canadians of legal drinking age purchased the equivalent of 8.7 standard alcoholic beverages per week in 2023/2024, down from 9.2 the previous fiscal year," it added.

In the United States, the drop in beer sales, along with high debt levels due to the Covid-era shutdowns, have forced dozens of local and regional breweries to close. Many of these companies were only marginally good businesses before the pandemic, making even a small drop in business, amid increased expenses, impossible to survive.

Beer sales have dropped in Canada as well.

"By volume, beer sales declined 4.5% to 1,950 million litres in 2023/2024, a record decrease since Statistics Canada began tracking alcohol sales in 1949. The 2023/2024 fiscal year marks the eighth consecutive annual decline in beer sales by volume. Beer sales were equivalent to 3.4 standard bottles of beer per week, per person of legal drinking age," according to the Canadian government.

That drop, along with a government decision expanding alcohol sales to more stores in Ontario, has caused Canada's own version of the Beerpocalypse.

"Restaurants Canada, which provides advocacy and resources for a variety of food service providers, including bars and restaurants, told CBC the industry saw a 55% increase in insolvencies in the first half of 2023 versus 2022," the CBC reported.

The slowdown in sales has also damaged another Canadian institution, The Beer Store.

While others may not know "The Beer Store," the nearly 100-year-old chain is a Canadian institution.

"Becoming experts on beer doesn’t happen overnight — we’ve been in business since 1927. There’s no other team of beer experts who live and love all things beer as much as we do. We love beer as much as you — so you know we’ll always be dedicated to bringing you your favourite brands from brewers around the world and offer tips on how to enjoy them responsibly. As a customer, you can choose from a multitude of beer brands from brewers around the world," the chain shared on its website.

The changing economics of the industry and the increased competition from new stores selling alcohol has forced the chain to get steadily smaller. It has already closed around 50 stores this year and has just shared plans to close another 10 locations.

“Closing a retail store is never an easy decision — our stores and employees contribute to communities in many ways and provide easy access to empty returns throughout Ontario,” said The Beer Store Retail Vice President Ozzie Ahmed. “We are modernizing operations and focusing on what we do best, selling ice cold beer, great customer service, and a world-leading recycling system that gets customers their deposit money back.”

The 10 impacted locations will close on August 24.

The Beer Store has been a major player in the recycling of beer cans and bottles. The chain encourages customers to keep bringing empties back to the chain's remaining locations.

It also shared a reminder with all Canadians.

"All grocery stores that sell alcohol will be required to return empties starting January 1, 2026," it posted.