Structural Changes Within the Industry

The Agreement on Internal Trade (AIT), signed by both the federal government and
the provinces in 1994 to facilitate inter-provincial trade, resulted in the reduction of
some trade barriers between provinces, particularly in western Canada. A more
unified Canadian market paved the way for a major restructuring of production
during the period 1995 to 2005. The largest brewers with production establishments
across the country were able to achieve greater economies of scale during this period
by closing smaller plants and consolidating production in fewer but larger
establishments

The industry is primarily dominated by two major multinational companies. These
two leading breweries, Labatt and Molsen, control approximately 85% of Canadianmade beer sold domestically. The third largest brewer controls roughly 6% of the
market, while the balance of domestically-produced beer is supplied by microbreweries.

Decrease in per capita consumption of "brand name" products, while "niche" markets
supplied by micro brewers have experienced an increase in demand for specialty
products

The recent consumer shift away from more expensive imported product to less
expensive domestic beer has helped the Canadian industry during the 2008
recession. Companies offering products in a range of prices have been thriving
during the recent economic downturn