Labatt buys Toronto’s Mill Street Breweries

Ontario Craft Brewers president sees move as good for the industry

Labatt Breweries of Canada has purchased Toronto’s Mill Street Brewery, much to the chagrin of fans who prefer their craft brews to be local and independently owned.

Labatt, itself a former independent Canadian brewery that is now owned by the global industry giant Anheuser-Busch InBev SA, announced the acquisition of Mill Street Friday. Labatt did not disclose the purchase price, but said it plans to “immediately invest” $10 million in its Toronto operations.

While some congratulated Mill Street on the move, many distressed fans took to Twitter to express their displeasure.

“Congrats to the owner of @MillStreetBrew you deserve to cash in but I’ll never be able to drink you again because Labatt’s will (expletive) it up,” tweeted @FootballSaves.

But Nicholas Pashley, author of An Intemperate History of Beer in Canada, said serious beer connoisseurs aren’t surprised by the news. For all the wailing and gnashing of teeth, the average beer drinker probably won’t notice a difference, he said.

“They’ve hit the jackpot, and I can’t begrudge them,” Pashley wrote in an email. “It’s part of a trend in the business, the huge guys swallowing up the medium-sized guys as the beer giants see their brands losing ground.”

In contrast to the beer fans bemoaning the loss of small breweries swallowed up by global mega-corporations, Ontario Craft Brewers president John Hay said such acquisitions are actually good for the craft brewing industry. In a release, he pointed to Molson Canada’s 2005 purchase of Creemore Springs Brewery, which touched off a growth spurt in small breweries in the province.

“People recognized the excitement and potential of craft brewing. The industry grew from about 30 operating brewers to approximately 150 within five or six years,” Hay said in the release.

Reached by phone, Mill Street co-founder Steve Abrams said he’s taking the passionate response as a compliment.

“I think there’s a lot of love out there for Mill Street,” he said.

CHRIS YOUNG /THE CANADIAN PRESS Labatt Breweries of Canada president Jan Craps in the Mill Street Brewery in Toronto on Friday. Labatt, a former independent Canadian brewery that is now owned by an industry giant, announced Friday that it has bought the craft brewer.