In nearly three decades working in Nova Scotia’s craft beer sector, Brian Titus, president and general manager of Garrison Brewing Company in Halifax, reports an extraordinary wave of brewery shutdowns over a short span. The industry, which expanded to around 60 breweries including multiple taproom sites, has shrunk to about 50 in just the past two years.
Recent Closures Shock the Industry
“It’s certainly unheard of what we’re seeing right now,” Titus states. Historically, a few annual closures balanced out with new openings, but the last couple of years show steady decline. “Honestly, the last couple of years has pretty much just been backward movement … which is frustrating because historically this industry for a decade has seen nothing but growth,” he adds.
The most recent closure involves Halifax’s 2 Crows Brewing, which announced on social media February 18 that operations end March 7. Opened in 2017 on Brunswick Street and employing about two dozen staff, it stands out as one of the province’s largest breweries, unlike prior smaller-operation shutdowns.
Rising Costs and Market Challenges
Co-owner Mark Huizink cites multiple factors, including sharp increases in raw materials, software, and other essentials that eroded margins. The brewery expanded into Quebec but withdrew due to distributor issues. A planned deal in New Brunswick via the provincial liquor retailer failed to materialize, limiting sales primarily to Nova Scotia with some in Alberta and British Columbia.
“Getting your beer in front of people is a difficult thing in Nova Scotia,” Huizink notes, highlighting heavy marketing expenses. Facing a lease renewal, the business chose closure. A new west-end Halifax taproom opened late 2023 in partnership with Yeah Yeahs Pizza, providing some relief but arriving too late. The pizza shop continues independently with a new beer supplier.
Huizink explains that significant growth would require more taprooms, though such expansions demand substantial capital and labor.
Pressure from Regulations and Fees
Andrew Tanner, president of the Craft Brewers Association of Nova Scotia, describes the 2 Crows shutdown as sad and unfortunate. Local craft beer gains market share, yet most breweries struggle. “No one has raised their hand saying, ‘You know, that I feel like I’m next,'” Tanner says. “But we certainly know the pressure is on, and the spring, summer season can’t come quick enough.”
Those peak months generate profits that sustain operations through slower fall and winter periods, Titus confirms.
Brewers highlight fees from the Nova Scotia Liquor Corporation (NSLC) as a major hurdle. Breweries pay a 5% markup on cans sold on-site, but 40% through NSLC stores—compared to 18% for New Brunswick’s equivalent. The NSLC states no immediate changes to local product markups.
With the provincial deficit, Titus doubts quick adjustments. NSLC channels offer the best reach, but high fees deter expansion, pushing breweries toward taprooms. “You’ve got people who entered the industry because they wanted to make really great craft beer and a local product,” he says. “They’re almost forced into becoming bar owners and competing with an industry that already has its share of challenges.”
Garrison, opened in 1997, now operates two taprooms despite Titus’s initial reluctance; the Halifax Seaport site closes temporarily for renovations.
Community Impact
Breweries serve as vital community hubs for gatherings, games like darts and cards. Titus warns, “I guarantee they leave a hole in those communities much bigger than their actual business.”
