LCBO to introduce 'craft beer zones' at 25 locations

The LCBOhasopened its first "Craft Beer Zone" atToronto's Summerhill store the first of 25 planned for the province.

In a statement, the province describedthe sections as "innovative new marketing displays" which will highlight Ontario, Canadian and international varieties of small-batch beer. It says the zones will provide increased market exposure for thebrewers.

TheSummerhillCraft Beer ZonealsofeaturestheLCBO'sfirst growler station, where consumers can fill large, reusable jugs with freshly poured beer. There will be threeOntariocraft beers on tap at the station.

• LCBOinvites Ontario craft brewers to join beer growler program

"The Craft Beer Zones and the Summerhill growler station will provide greater choice for Ontarians while supporting growth for brewers," said Ontario's minister of financeCharles Sousa.

"It's a pretty cool first step," said Mark Murphy of Toronto's Left Field Brewery, which sells through the LCBO but is not yet participating in the growler program.

"It helps grow the channel, so everyonebenefits," Murphy added."We'll see more consumers being exposed to craft beerand hopefully coming to our door."

Small batches, big business

In total, the LCBO sells 70 brands of Ontario craft beer. It says the microbrewsuds topped $68 million in sales in 2014-15, a 36 per cent jump over the previous year. Since 2006, sales have grown by 630 per cent.

Ontario brewers say the new sections could bump sales even higher.

"This is yet another opportunity for craft brewers to expand our market reach and grow our businesses," said Cam Heaps, chair of Ontario Craft Brewers, an association ofprovincial brewers.

The Craft Beer Zones are part of a larger beer plan introduced by Ontario earlier this year.

• Ontario to sell off 60% of Hydro One, allow beer in grocery stores

In April, the province announcedit would allow the sale of beer in up to 450 grocery stores, introduce reforms at The Beer Store's board of governors, and provide greater support for Ontario's craft brewers.

Mark Murphy says the changes, as well as improved tax credits, have made it a good time to be in the business of craft brewing.

"It's been a pretty supportive industry and everyone isliking craft beer these days," he said."Competing is a lot easier than it used to be."

Restaurants left out to dry

Restaurants Canada says growler sales should have been introduced in restaurants instead of LCBO locations.

Earlier this year, the national association proposed to Ontariothat growler sales be permitted as an "off-sale" inrestaurants. The proposal has been shelved.

"Restaurants Canada asked the government to follow the lead of other provinces and allow restaurants to sell growlers for customers to take home," said James Rilett, Restaurants Canada's Ontario vice president. "The government said no, and then turned around and took the idea for themselves."

"They have chosen to directly compete with restaurants and bars for the draft beer market," Rilett added.

Five provinces currently allow craft beer off-sales at restaurants.