brlogonewMy CBC beer column last week centred around the news of the resignation of Big Rock CEO Bob Sartor. It was somewhat surprising news and it got me wondering what might this mean for Alberta’s oldest and largest craft brewery. You can listen to the column here.

For those not familiar with Big Rock’s long and winding history, I start with a short synopsis of their roots, their various trials and tribulations over the years and how they got to where they are now. In particular I focus on how as a pioneer of craft brewing in Canada they fell prey to their own success. A big expansion, designed for a failed attempt to woo the American market, created a dilemma for the company. They had a huge brewhouse that they needed to keep busy. This logic led them during the 2000s down a path that, in hindsight, might not have been advisable.

They started seeking greater market share through a variety of means. They started chasing the pale lager market, releasing a series of uninspiring lagers in an attempt to woo Labatt and Molson drinkers. They also pushed into the discount beer segment with Alberta Genuine Draft and creating a whole host of “house beer” for bars and restaurants (beer that sells for less and is branded for the bar, rather than the brewery). They also achieved national distribution and became one of Canada’s largest independent breweries.

Along the way their craft credentials took a big hit. Newer microbreweries passed them and Big Rock found itself stuck, well, between a rock and hard place.

Sartor’s arrival marked a significant shift for the company. During his four-year tenure Big Rock has tried very hard to re-establish their craft beer credibility. They dropped their efforts to court the mainstream market (or, maybe, they recognized that craft is becoming more mainstream) and stopped chasing the same fads the big boys constantly chase. They have de-emphasized (but not halted) their production of discount beer and house brands. Instead they have increased their efforts around creating interesting seasonals and one-offs and have expanded their line-up to include more “craft” like styles, like Scottish ale, dunkelweizen and even a single-hop IPA.

brhollowtreeThe results of this effort have been mixed, both in terms of the beer and the reaction from the consumer. I think Big Rock has made great strides in repairing its relationships within the industry, but at times the beer drinker can be stubborn and slow to forgive. I truly am not sure where their reputation sits these days. Definitely improved, but I just don’t know by  how much.

So, going forward, what does the future hold for Big Rock? I, obviously, have no insider information but I think they are at a fork in the road. New CEOs usually mean a new course, even if fairly subtle, for a company. Profits have been down in recent years, what with rebranding costs and lower production volumes. The shareholders may be restless and see this transition as an opportunity to shore stock value back up. Conversely the next CEO might double down on the repairing craft credentials project.

Both paths are fraught with risks. Going back to chasing volume could leave Big Rock in the same no-person’s-land they were in a few years ago; rejected by craft beer drinkers but slow to be adopted by commercial beer drinkers. But the craft world is becoming increasingly competitive and challenging, so that option is no walk in the park either. It is moving very, very fast. Is a brewery the size of Big Rock able to be nimble enough to keep pace? I don’t know.

What I am fairly certain of is Big Rock will look quite different a couple of years from now than it does today. I will be watching with great interest.