N.S. Breweries, Bars Try To Stay Afloat As Taps Turned Off, Store Hours Restricted
HALIFAX – It’s a tough time right now for beer lovers, and beer sellers, in Nova Scotia. This week, the provincial government mandated that all drinking establishments, amongst other businesses, must close, and liquor stores would operate at restricted hours, due to the COVID-19 pandemic.
As one can imagine, those who make a living supplying alcohol to the local draught taps are feeling the pain.
“Like any other small business sector, it’s been pretty devastating,” said Kirk Cox, executive director of the Craft Brewers Association of Nova Scotia. “A significant portion of their revenues have been eliminated.”
“There’s still fear and unknowns about what’s upcoming.”
Cox, who’s Association represents roughly 50 brewers in the province, says layoffs and closures have been common for the industry this week. Nonetheless, he doesn’t blame the government for forcing bars to close.
“I don’t think we felt the government was coming down too hard at all,” said Cox. “We completely understand, given the circumstances that the government had to take these measures.”
Brewers can still hope for some income by selling their products onsite and through the provincial liquor stores. But whether that revenue stream will last much longer is unknown.
During one of the government’s press conferences this week, premier Stephen McNeil was asked why liquor stores are still open, while other nonessential businesses must close. The Premier responded saying the status of liquor stores will be continually evaluated.
“We will continue to analyze those…it’s not a place that we would see large numbers that are showing up at them,” said McNeil.
“If we find that this is a public health issue, in terms of spreading the virus, then we will take further steps.”
If liquor stores are eventually forced to close down, that could make matters even worse for small craft brewers in the province.
“If liquor stores close indefinitely, our biggest customer is gone,” said Cox. “And if liquor stores close It means we won’t be able to sell at our breweries either. So, there will literally be no one to sell product to.”
“We will, essentially, have to close operations.”
Cox says many of the breweries are coming up with creative solutions to stay in business while respecting the new “social distancing” norms of society, such as doing curbside deliveries and even selling their product out of windows. But, like almost all other hard-hit businesses, craft brewers will be hoping to get financial aid through the federal government.
“We’ve got to sit down with the government and get this right, and it’s really important that we do it now.”
For many bar owners in Nova Scotia, the government’s mandate was a moot point. By the time establishments were forced to close on Thursday, many owners had already voluntarily shutdown.
In the HRM, Joe McGuinness owns such well-known drinking spots as The Stubborn Goat, Durty Nelly’s, and Antojo Tacos + Tequila. His business group, Legendary Hospitality, closed down the establishments on St Patrick’s day for health and safety reasons.
“The last thing we want to do is jeopardize our employees or our guests, through exposure to COVID-19,” said McGuinness.
“We want to be responsible and do the right thing.”
When asked about his biggest concerns, McGuiness said he’s focused on the financial wellbeing of his 150-plus staff, who are now out of work.
“Our employees are the heart and soul of our business; indeed, every business,” he stated.
“Our commitment is to our employees. Our commitment is to be shoring up short term financing to bridge this unfortunate situation we collectively find ourselves in. And then focus on reopening and rehiring all of our employees.”
The federal government has announced stimulus packages to help the economy, including a recent $82-billion package that was announced on March 18. McGuiness is hoping there will be financial support for the hospitality industry and, most importantly, the employees.
“How can we defer rent payments? How can we defer loan payments? We need to weather this storm collectively together,” he said.
“How can the federal government modify EI for our employees?”
“We are in uncharted times, and one of the biggest concerns our employees have is making rent.”
Despite these unprecedented challenges to businesses and the workforce, McGuinness remains positive that everyone will work together to survive.
“We have to stay positive; we are optimistic that we will come through this collectively, as Canadians.”