Lift of market protection has no impact, but the recession is affecting Renegade.

Lift of market protection has no impact, but the recession is affecting Renegade

Renegade Brewery in Thunder Bay has not been affected by the removal of provincial restrictions on the sale of draught beer.

However, it has only been a few months since the restriction was lifted, permitting breweries in Northern and southern Ontario to sell draught in each other's regions.

"So far nothing has changed," says Renegade production manager Rob Hemsworth.

It is up to Brewer's Retail to make any decisions on where the beer will be sold, he adds.

"We can't sell our own keg product past North Bay," says Hemsworth, explaining that the transportation costs would "kill us."

Renegade had previously attempted to sell its product in Toronto, he notes. "There was so much expense involved that it wasn't viable."

Any further lowering of provincial trade barriers would also have little affect on Renegade. However, Hemsworth says the company would examine the potential of marketing its product in Winnipeg.

Under the current rules, a company must have a brewery in a province to sell beer there.

RECESSION

Contrary to belief of some people, Hemsworth says that beer sales are not immune to a downturn in the economy.

"Nothing is recession-proof," he says.

"The beer industry is pretty flat right now."

In fact, Hemsworth points out that beer, along with cigarettes and gas, are always hit when tax time comes around.

"I don't think it's fair at all," he says. "I think it's ridiculous."

Hemsworth notes that there are no allowances made for microbreweries when it comes to taxes. They pay the same rates as larger operations.

However, because of the economy of scale, the microbreweries are hit harder than the larger operations, which have much greater purchasing power.

"It's very disconcerting for a small business when so much tax stands in your way," he says, adding that when government gets its cut, it leaves a very little margin of profit.

There are also problems that can't be foreseen, such as this year's failure of the hops crop in the United States and Europe, making that ingredient twice as expensive.

However, Renegade is still gradually increasing its production volume and number of outlets, Hemsworth says. "Those are good indications we're moving in the right direction."

EUROPEAN TRADITION

Microbreweries have a long history in Europe, where almost every town has its own brewery and distinctive beer.

"The pride of your village or town is your brewery," says Hemsworth.

In Canada, after the idea was brought back by tourists, the government allowed microbreweries to exist, beginning in 1983.

"People who got involved had a genuine love for beer and didn't want to offer something that was bland," Hemsworth explains.

He hopes Thunder Bay will realize the uniqueness of Renegade beer and take pride in it. "We're trying to establish ourselves as the community brewery."

Renegade has two distinct products, both ales. Its gold variety is a Canadian-like ale, while its amber brand is similar to a full-bodied, dark British ale.

"We have a certain niche in the market we've attracted, and they are very loyal to us," Hemsworth says.

The product is available in beer stores from Marathon to the Manitoba border, at Renegade's retail outlet at its production facility in Thunder Bay and in about 45 bars and pubs in Thunder Bay and 20 others outside of the city.

Renegade tries to get its product out in four to six weeks, with a 10-week life for bottles and six weeks for kegs.

In general, microbreweries had less than one per cent of the total beer market last year, notes Hemsworth. "So, when we say we are a spit in the bucket, we mean it."

Renegade makes pure malt beer, which makes it different from beer produced by the large breweries.

While Renegade uses 100-percent barley malts, the larger breweries use rice, corn or any starch source that can be converted to sugar, which is added to malt.

Hemsworth says pure barley malt is what real beer is all about, not the lite, dry and other gimmick beers of today.

"It's just a joke," he says.

Larger breweries are too concerned with marketing and image, he adds. "God forbid they should have real taste."

The Renegade operation began in 1987. Hemsworth explains that the name was chosen to convey the idea that the brewery stands alone.

"We're the only microbrewery in Northern Ontario that I'm aware of," says Hemsworth.

The name also fits the fur trade heritage of the Thunder Bay area, where people survived by taking chances, he adds.

Hemsworth explains that brew pubs and microbreweries are not the same.

A microbrewery is defined as one producing less than 50,000 hectalitres (five million litres) of beer per year. The seven-employee Renegade operation produces about 3,000 hectalitres per year.

PHOTO : Renegade Brewery production manager Rob Hemsworth shows the two varieties of beer the operation produces: a Canadian-type ale and a darker British type.