Nova Scotia's craft beer sector, which grew to around 60 breweries in recent years, has shrunk to about 50 in the last two years amid rising costs and operational challenges. The closure of Halifax's 2 Crows Brewing, one of the province's larger operations, highlights the industry's struggles. Brewers point to high fees from the Nova Scotia Liquor Corporation as a key barrier to growth.
In the past two decades, Nova Scotia's craft beer industry expanded significantly, reaching as many as 60 breweries, some with additional taproom locations. However, Brian Titus, president and general manager of Garrison Brewing Company—which opened in Halifax in 1997—notes that the number has now dropped to around 50 in just the last two years. "It's certainly unheard of what we're seeing right now," Titus said, adding that while a few closures were typical annually and often balanced by new openings, recent years have shown only decline.
The most recent closure involves 2 Crows Brewing in Halifax, which announced on February 18 that its final day would be March 7. Opened in 2017 and employing about two dozen people, the brewery was among the province's largest, making its shutdown particularly notable compared to smaller operations that have closed before. Co-owner Mark Huizink attributed the decision to escalating costs for raw materials, software, and other essentials, which "chipped away at our margins."
Efforts to expand beyond Nova Scotia met obstacles: a distributor issue prompted withdrawal from Quebec, and a deal with New Brunswick's provincial liquor retailer failed to materialize. Sales remain concentrated in Nova Scotia, with limited reach to provinces like Alberta and British Columbia. "Getting your beer in front of people is a difficult thing in Nova Scotia," Huizink said, emphasizing the high marketing expenses required.
Andrew Tanner, president of the Craft Brewers Association of Nova Scotia, described the 2 Crows closure as "sad and unfortunate." He noted that craft beer is gaining market share in the province, yet most breweries are under pressure. "No one has raised their hand saying... that I feel like I'm next," Tanner told CBC Radio's Information Morning, though he stressed the urgency for the busy spring and summer seasons, when profits sustain operations through slower months.
A major frustration is the fee structure from the Nova Scotia Liquor Corporation (NSLC). Breweries pay a 5% markup on direct sales but 40% when selling through NSLC stores—compared to 18% in New Brunswick. The NSLC stated it has no immediate plans to alter this for local products. With the province facing a $1.2 billion deficit, changes seem unlikely soon, Titus said.
To cope, many breweries, including Garrison with its two taprooms, have turned to opening their own venues despite initial reluctance. Titus remarked that operators who joined to create local beer are now "forced into becoming bar owners." 2 Crows added a west-end Halifax taproom in late 2023, partnering with Yeah Yeahs Pizza, but it proved insufficient; the pizza shop will continue with a new supplier. Huizink considered further taprooms but highlighted their capital- and labor-intensive nature: "If we were to grow significantly, it would have to be through additional taprooms."
Titus underscored breweries' role as community hubs for gatherings and activities, warning that closures create gaps larger than the businesses themselves.
