E-Malt.com News article: Canada: Craft breweries must find ways to adapt to declining consumption

As consumers turn away from craft beer and microbreweries close, one craft brewer says he still optimistic about his industry, the Capital Current reported on March 12.

But Josh McJannett, co-founder of Dominion City Brewing Company, says smaller breweries have to adapt to a rapidly changing and challenging business environment.

“At this point, we’re actually competing with a much wider swath of the market, … non-alcoholic beverages, canned cocktails, THC beverages,” McJannett said.

“People’s menu of options is just so much larger than it’s ever been.”

According to data from Statistics Canada, the volume of beer sales in 2024-2025 fell 3.79 per cent from the previous year. This data accounts for all beers, imported and domestic.

Data compiled from LCBO annual reports also shows craft beer sales through LCBO stores have been mostly declining since 2021, though the volume of craft beer sold in 2025 was up about 1.6 per cent compared with 2024. And multiple craft brewer closures have been reported across Ontario.

McJannett says his brewery has responded to the trends, including the launch of City Seltzer, a subsidiary of Dominion City Brewing Company.

“I think that was an important moment for us to realize that having a non-alcoholic product, something different than beer, but something we sell at the brewery, something my kids can drink, has been really eye-opening,” he said.

While consumers might be drinking less, there are still occasions that some choose to mark with an alcoholic beverage, such as St. Patrick’s Day.

“We probably are in a bit of a moment where people are dialing back and that’s healthy. I still think that small companies can offer an experience and a quality product that meets the moment for occasions when people still want a beer,” he says.

McJannett also points out that beer making has a long history.

“People have been drinking beer for 4,000 years. I suspect they’re going to continue drinking it for a while longer,” he said.

“We’ll have a long path ahead. The time [now] where there might be more closures than openings, follows a period of time where there was a lot more openings and virtually no closure. So I don’t think that’s necessarily unusual.”



12 March, 2026