VANCOUVER ISLAND BREWING TO OUTSOURCE OPERATIONS TO LOCAL BREWER
Lease expiry at present site prompts production co-pack arrangement with Phillips Brewing & Malting Company
VICTORIA, B.C. (August 28, 2024) – Facing a 35 per cent rent increase at its current government street location and ongoing cost pressures, Vancouver Island Brewing (VIB) has signed a co-pack agreement to have its popular line-up of craft beers brewed and packaged by Phillips Brewing & Malting Company (Phillips) effective November 1st, 2024. There is no change in the ownership structure at VIB or Phillips.
Started in 1984, VIB is Vancouver Island’s first craft brewery. By outsourcing its production and packaging to Phillips’ nearby facilities in downtown Victoria, Vancouver Island Brewing is ensuring its much-loved portfolio of high-quality, all-natural beers, including Islander Lager, Mystic Haze, and Broken Islands Hazy IPA will continue to be locally made. The ingredients and recipes for all VIB beers will remain the same, with VIB conducting regular test panels to guarantee the consistent great taste which has made VIB’s brands much-loved and enjoyed in homes, pubs, restaurants and festivals across Vancouver Island. Production oversight will be carried out by VIB’s General Manager, Thom Riley, who received his brewery education in the United Kingdom and was Brewmaster at Stanley Park Brewing for five years prior to joining VIB in 2023.
“After 40 years of serving the craft beer community on Vancouver Island and beyond, it was important for us to find a craft brewery whose operators also have deep, local roots and whose commitment to excellence and quality matches our own,” said Riley. “Phillips Brewing is a recognized and respected leader in the Vancouver Island and B.C. craft beer sector. Their operations team consistently maintain high-quality standards, and we look forward to ensuring a seamless transition of our production in the coming months.”
In addition to production oversight responsibilities, Riley will be responsible for building new brand recipes for VIB in its small-batch brewing facility that will remain in operation in approximately 10% of its current Government Street space. In keeping with its license requirements, VIB will produce test batches for new products and produce one-off small-batch specialty products that will appear on-tap at VIB partner establishments around the province.
Except for the continuation of its small batch brewing operations, VIB’s relocation process will see its taproom close on September 14th and operations at the main brewery cease effective November 1st.
“Today’s announcement of the strategic restructuring of our business model is in response to the combined impacts of Covid, rising inflation, supply chain challenges and rising costs of taxes and rents. VIB has successfully navigated four decades of economic ebbs and flows, and our decision to change our business model speaks to our resilience and our commitment to the community.
It guarantees the continued production of VIB’s quality craft products for our consumer and retail markets, and creates a stable platform for future planning,” explained Riley. “While the positions we have in sales, marketing, finance and administration will continue to support the business, the outsourcing of production to Phillips will result in the most unwanted and difficult part of this transition, and that is, that the positions we have in operations will unfortunately be eliminated effective November 1st."
“Without question, the enduring popularity of our brands and the quality of our beers are a testament to the hard work, expertise, and dedication of our talented Brew Crew. We can’t thank these individuals enough for everything they have contributed, and our immediate priority is ensuring that each impacted person is treated with the highest level of respect, empathy and support. We will be hands-on in supporting transition plans and opening doors for future employment opportunities within the craft brewery sector for those wishing to continue.”
For fans and retailers of VIB craft beers, it is business as usual. VIB will be re-launching one of its legacy beers, Sea Dog Amber Ale at Rib Fest on September 6, and VIB’s beloved seasonal favourite, Hermannator Ice Bock, is currently in production, the 2024 release being the last for the Government Street operation. Going forward, this highly coveted recipe along with all VIB products will be brewed by Phillips.