Calgary-based Big Rock Brewery Inc. is undergoing 'significant cost-cutting measures' in an effort to remain competitive while driving 'long-term value for shareholders'.
In a statement released Wednesday afternoon, the brewer said the measures will included a reduction to its workforce but did not indicate how many positions were being cut.
“Our ultimate goal is to allocate our resources in a manner that will ensure the success of the future business and maximizes shareholder value,” said Wayne Arsenault, Big Rock President & CEO in the statement. “We are creating a sustainable business model by accessing new ways to grow revenues, reduce expenses and improve margins, despite the current tax regime and regulatory environment for beer in Alberta. This process can be painful, and we recognize that personnel reductions are difficult for our employees, their families and the community."
"We value the dedicated team at Big Rock for working hard towards this goal. We will continue to work with the new Government of Alberta to establish a positive regulatory environment for small brewers in the province that is predictable, stable and supports growth.”
Big Rock says the recent increase in provincial tax on its beer, a 104 per cent increase in the net beer mark-up in late 2018, eroded the 34-year-old company's profitability and forced the move to lower operating costs.
