Vancouver Island Brewing has announced they will outsource their operations to Phillips Brewing.
They call it a co-pack agreement, where Phillips will produce and package the Vancouver Island Brewing recipes.
"We've announced today that we're going to be ceasing production at our facility on Government Street as of November 1, and we're going to be transitioning the production of our products over to our neighbours at Phillips,” Vancouver Island Brewing General Manager Thom Riley told C-FAX 1070.
"Some big changes. But we're committed to making sure that we're still putting out the same great tasting beer and at the same high quality. With Phillips being the ones to take this on, we're confident that's going to be the case.”
Riley says they were already facing a difficult business climate when they learned of a looming 35% rent increase at their Government Street location. "It's been a challenging time for the craft beer industry for the last little bit. In the years following COVID hospitality, bars and restaurants, you know everyone has been feeling the pinch. We'd come to the point where we needed to re-negotiate our lease, which was expiring at the end of February. We came to a cross roads where we knew continuing on at our current facility wasn't going to be a viable option.
15 staff involved with brewing will be laid off at Vancouver Island Brewing, but the management, sales, and marketing teams will remain as the brand continues. Riley says they will maintain a presence at their current Government Street location, but with a much smaller footprint. The current tap room will close along with the brewing facilities.
Vancouver Island Brewing, which has been in operation for 40 years, isn’t the first heritage beer maker to announce major changes this month. Swans Brew Pub recently announced they would discontinue brewing their own beer while continuing on with pub operations.