Alcohol-free beer is more popular than ever, especially at the start of the year when many people are challenging themselves to not consume alcohol at all for a month or two.
Published at 5:00 a.m.
At the Le Ravitailleur boutique on rue Beaubien Est, in Montreal, an entire fridge is dedicated to non-alcoholic beers. There will soon be a second one, which will also include other types of 0% drinks.
“I have a customer who has just had four non-alcoholic beers,” says manager Jérémie Loisel-Payette, specifying that this regular, an IPA lover, is starting her year by avoiding alcohol. She has a choice: the shop offers around thirty non-alcoholic beers, from a dozen microbreweries.
On the other hand, you should not expect to make big savings by removing alcohol from the drink, the prices being similar, when comparing beers in the same niche.
Since alcohol in beer is heavily taxed, one might wonder why beers that don’t contain it sell for prices comparable to regular versions.
“You have to understand that there are two kinds of non-alcoholic beers,” explains Philippe Roy, general director of the Quebec Brewers Association. For decades, alcohol-free beer was made using an artisanal process. » When the yeasts began to activate to transform the sugar into alcohol, they were removed. This is why there is a tiny bit of alcohol, or traces, in this type of beer and why they are labeled at 0.5%, which represents a maximum level. This process is still widely used by microbreweries.
Large companies are now doing things differently.
“With technology,” continues Philippe Roy, “we make the beer and put it through a machine – which costs a fortune. She is able to reach for the alcohol and completely remove it from the product. »
According to Philippe Roy, the technological equipment and additional process explain the cost of non-alcoholic beer produced by large industries.
However, the prices of beers, with or without alcohol, vary enormously.
In Quebec, it is the retailer who decides the price at which he will sell his beer, even if there is a minimum price to respect. While specialty beers easily retail for more than $4 or $5 per unit, a case of 12 cans of house brand non-alcoholic beers sells for less than $10 in a large chain grocery store. That’s half the price of a case of 12 alcoholic cans of comparable quality.
No alcohol, no excise tax
One thing is constant, however: the tax rate is the same for everyone and represents approximately one third of the price paid for a can of beer with alcohol, without calculating the added GST and QST.
Ottawa imposes an excise tax and Quebec a specific tax. The tax rate varies depending on the alcohol level and the quantity produced by the manufacturer, but at the Association des brasseurs du Québec, it is estimated that a total of 35% taxes can be calculated for the majority of beers .
“In the United States, the same beer has 17% tax. Beer in Quebec is taxed twice as much as the same beer in the United States,” laments Philippe Roy.
A non-alcoholic beer displayed at the same price as a beer with alcohol would therefore have a “tax-free” price approximately 50% higher. Does the cost of production justify it? That’s a big mouthful to swallow…
50% more expensive?
A non-alcoholic beer displayed at the same price as a beer with alcohol – despite the absence of around 35% alcohol tax – allows the seller to pocket around 50% more.
Beer with alcohol
– Listed price: $10
– Taxes on alcohol (35%): 3.50%
– Prix hors taxes : 6,50 $
Non-alcoholic beer
– Price displayed and excluding taxes: $10, or 50% more than the $6.50 for beer with alcohol
However, this is the case, maintains Philippe Roy, because despite the popularity of non-alcoholic beer, the market only represents 5% or 6% for the large brewers. Not enough to make real economies of scale.
-More steps
Microbreweries of all sizes occupy approximately 10% of the beer market in the province. More and more of them are also embarking on the alcohol-free adventure. This is the case of the microbrewery L’Alchimiste, in Joliette, which has just added five non-alcoholic beers to its collection.
The Alchemist’s White, the original, retails for $3.29. You have to pay $3.99 for its non-alcoholic version.
For what ?
“We don’t use the same yeasts,” explains Pol Brisset, owner of L’Alchimiste, who explains that those used in the manufacture of his non-alcoholic range are more expensive.
PHOTO FRANÇOIS ROY, LA PRESSE ARCHIVES
“This market is here to stay,” says Pol Brisset, owner of L’Alchimiste. That’s why I invested in alcohol-free products. I want us to become the leader in the market. »
But there’s more: after stopping fermentation at the start of the process, the brewer must absolutely ensure that it will not resume naturally once the beer is put into a can. This is a crucial additional step if we do not want the alcohol level to increase, naturally and without control.
“There are fewer grains in non-alcoholic beer, but more steps, including pasteurization,” explains Pol Brisset, who assures us that it is worth it – and the cost. Because in addition to its new range, L’Alchimiste will launch alcohol-free and gluten-free beers at the end of January.
A big market for retailers
Non-alcoholic beer is not only popular with consumers, it is also popular with retailers. In addition to finding it on the shelves of grocery stores and convenience stores, it can be found in less traditional stores like Dollarama, Pharmaprix or Canadian Tire. Its absence of alcohol makes it accessible everywhere, like soda or water.
For the brewers who produce it, whether it is sold in a Maxi or a Canadian Tire, it doesn’t change much. For them, it’s a way to reach consumers more easily. It sure is surprising. We’ll have to get used to it.
Philippe Roy, general director of the Quebec Brewers Association
The Société des alcools du Québec (SAQ) also intends to take its share of the market, having already increased its offering in non-alcoholic drinks in general.
The SAQ made a call for proposals last fall to improve this offer in beer, but has not determined to what extent it intends to increase the number of non-alcoholic products on its shelves.
Tastings of non-alcoholic beers offered by producers or distributors will be held next month to choose the products that suit the state corporation.
This expansion of the SAQ’s offering in non-alcoholic drinks has raised many eyebrows.
“The question arises,” says Philippe Roy, of the Quebec Brewers Association: if it starts selling alcohol-free products, why not chips too? Or tonic to go with the gin and tonic? It’s a debate to have. »
For the president and CEO of the Food Transformation Council of Quebec, this is not a matter for debate. “The SAQ is moving away from its mission,” says Sylvie Cloutier, who believes that the state-owned company should keep this shelf space for local alcohols and spirits.
“We are taking space that should be reserved for them to make room for products that can be sold through the thousands of grocery stores and convenience stores in Quebec,” she said.
PHOTO HUGO-SÉBASTIEN AUBERT, THE PRESS
Philippe Boehm (left), co-owner of the Le Ravitailleur boutique, and Jérémie Loisel-Payette, manager
Philippe Boehm, co-owner of the Le Ravitailleur boutique, also believes that the SAQ should not come and take sales from merchants who cannot sell certain types of alcoholic beverages.
“We would like to sell something strong Quebecois, he specifies. The SAQ is the Société des alcools du Québec. It is not at all its mandate to sell anything other than alcohol. »
