Labatt closes Lakeport brewery

However, the brewery’s closure also delivers another blow to the labour market in Hamilton, which has seen massive layoffs in some of its key industries.

Lakeport was acquired by Labatt in 2007 as part of a CND 201.4 million takeover of the popular brand, which helped coin the phrase “buck-a-beer” because of its low price.

As the economic downturn played out, beer sales across the country tumbled, affecting all of the major brands.

In 2009, domestic beer sales tumbled 2.8 percent over the previous year, according to the Brewers Association of Canada, an industry watcher. Sales fell even further in Lakeport’s home province of Ontario, slipping five percent on the year.

Before the Lakeport purchase, Labatt’s market share in Ontario had dropped to 32 percent. Market observers say that Labatt had to buy the Lakeport Brewery to keep up with Molson in Ontario and also control the leading discounter of beer in the Ontario market.

In March this year Labatt advertised the Lakeport beer in an 18 pack at a special low price. In Ontario that is under CND 20 (EUR 15).

But the funny thing is the main point in the ad: The ad says "don’t be fooled by the big boys". No doubt about it, Labatt are the big boys, ahem.

It is mind blowing how they try to deceive the public.