BORDEN-CARLETON, P.E.I. — In many ways, the owners of Lone Oak Brewing Co. have the same goals for their operation as they did two years ago when they began putting their business plan together.
“A business where you can employ yourself, employ your friends and people that you become friends with, and then become friends with your consumers. And, create this atmosphere of happiness. What else can you ask for in a profession,” said Jared Murphy, CEO of the craft brewery in Borden-Carleton. Murphy co-owns the business with Spencer Gallant (head brewer) and Dillon Wight (sales).
The three owners are all 28 years old. Murphy and Wight have known each other through playing soccer since they were around 10 years old. As they were talking about starting a brewery, they heard that Gallant, who was working with the P.E.I. Brewing Co., was also looking to get involved in a new brewery.
Grand opening
On Jan. 25, Lone Oak had its official grand opening, but the business had already been making a positive impression on thirsty Islanders since it technically opened on Nov. 30.
Located at 103 Abegweit Blvd. in the town’s Gateway Village, the lounge and taproom are about 2,800 square feet with seating for 110 people (capacity is 140 people). The brewery and packaging area are another 2,800 square-feet. To furnish the place, they bought 17 rustic tables, 96 chairs and barnboard trimming from Reclaimed P.E.I. in Murray River.
To help with renovations and get the business up and running, they received in July a $300,000 repayable contribution from the Atlantic Canada Opportunities Agency, $200,000 in non-repayable funding from the McCain Fund and $240,000 (repayable) from Finance P.E.I. They don’t have a kitchen, but they do have an arrangement with The Handpie Company to serve customers hand pies.
In the two months since opening, they’ve launched an American pale ale (Yankee Gale), a pilsner (Fixed Link), a sour (South Shore) and a hard cider (Iron 03Chard) as well as three new beers – a barrel aged oatmeal stout (Boat Traffic), an export lager (Silver Fox) and a saison (Rumors) – released at the grand opening.
Supplying the Island
Even though it’s only been operating for a couple of months, the brewery is already selling in 19 licenced establishments and 10 liquor stores or agency stores on the Island. The plan for now is to focus on supplying the Island, including getting products into all of the liquor or agency stores (about 25) and seasonal licenced establishments.
Wight, the brewery’s sales officer, previously worked with the Gahan House and already had some industry contacts. He said the reception for the brewery’s products has been good, but it’s taken some work to get products on tap.
“It is tough as a new spot. You have to develop yourself as a brand before people are willing to take a bit of a risk on you,” he said. “And, tap space is tough these days because we’re the eighth brewery on the Island, so a lot of places, if they don’t have eight taps, they already have a good selling product on that they’re happy with.”
Eventually, the company has its sights on selling off-Island in bars and restaurants. In terms of selling in off-Island liquor stores, provinces tend to promote and be more protective of local brands, said Wight. “It is a possibility. It’s just that there are more hoops to jump through,” he said.
Craft beer culture
Lone Oak also hosted its first New Year’s Eve event in collaboration with the Hopyard in Charlottetown. Although they don’t make their own craft beer, the Hopyard has been important to the industry for showcasing local and regional craft beer. Despite a stormy New Year’s Eve, about 100 people attended the event with live music, including 50 people who took a bus from the Hopyard.
This is an example of the collaborative culture of the craft beer industry on the Island. Murphy explained that craft breweries are not really competing against each other as much as they are competing against the macro-brewing industry.
“If the craft brewing industry is taking market share away from the macro producers, then all of the craft breweries are doing better. It’s that idea that if one craft brewery is doing better, then we’re all doing better,” Murphy said.
Lone Oak is also involved in the Hopyard’s battle of the breweries contest, which pits two brewery’s selections of beer on tap against each other. On Jan. 23, Lone Oak squared off against Evermoore Brewing Company (Summerside), and won. Murphy said they sold out all four kegs in three hours. “It was awesome,” he said. Lone Oak is now moving on to face another P.E.I. brewery next month.
Another cultural aspect of craft brewing industry on the Island that impresses Murphy is how excited and educated Islanders are about the products. “People are talking about craft beer the same way they’re talking about wine,” he said. “The more you learn about the product and where these flavours are coming from, where the barrels came from and how it was brewed and what ingredients were used – you start to really appreciate it. And then you gain a pallet for it. I think with more and more people, that’s happening to them.”
Terrence McEachern is a reporter with the SaltWire Network in Prince Edward Island.
