Riot Brewing Co. in Chemainus officially closed its doors last week. The craft brewery, which had served the community since 2014, fell behind in its rent payments and their landlord had a bailiff change the locks on them as of Thursday morning.
Co-Owner Ralf Rosenke says their closure was from a combination of factors including pandemic-related financial complications.
“Since coming out of COVID, it’s been really tough. You’re grinding everyday and trying to keep your head afloat,” says Rosenke. “People can’t afford groceries. Craft beer is a luxury item, so we started seeing a decline in wholesale sales […] We fell behind a bit in rent, so the landlord decided to send in a bailiff and seize the assets.”
On top of that the Canada Emergency Business Account (CEBA) loans from during the pandemic are due to be repaid on Jan. 18, which added to their financial situation. The deadline will affect all businesses that borrowed up to $60,000 from that program during the pandemic to make ends meet.
“Everyone’s struggling just to get by and can’t afford to pay it back,” he says of the CEBA loans.
On-Air Conversation with Riot Brewing Co. co-owner Ralf RosenkeÂ
Rosenke says this year in particular was tough on their business, feeling that tourism in general to the island might have been down.
“I do feel this past summer, with BC Ferries being a big kerfuffle, and Highway 4 being closed out to Tofino, it affected a lot of people coming to the island this year and some of the tourism that we depend on,” he says.
While their closure took many in the community by surprise, Rosenke says they had an idea they might have been coming for quite a while.
“I would probably say by September we started looking at options,” he says. “We did have a few parties interested in purchasing and keeping on, but deals fell through. Probably for many reasons, but the last one was mainly for the landlord.”
He says their final night of business was an emotional one for his staff and their patrons. People from other Cowichan Valley breweries turned out, along with Mayor Rob Douglas and other councillors and community members.
“It was pretty crazy,” he says. “I don’t think I’ve ever seen that many grown men or people cry in one place. It was a pretty good party.”
Rosenke who was a production manager at a manufacturing facility started the business in 2014, along with Aly Tomlin who was a trained brewer and another partner who left the business a few years later. Their brewery was located on the main road through Chemainus beside the fire station.
They received some love across the country too, winning awards in the Canada Beer Cup in each of the past two years. Despite the accolades and the public support for their product, Rosenke says the decision to keep brewing any amount of beer is out of their hands at this time.
“At this moment, I don’t know. Just trying to navigate what’s going to happen here. It all depends on what happens with the assets and the building. Hopefully we don’t end up losing our house,” he says. “Right now I’m just trying to figure out how to write a resume for the first time in 30 years.”
Rosenke says it’s important to support local business and says he’s sure that other small businesses in the valley are in similar situations coming out of the pandemic.
“If I can just say one thing it’s: support small businesses,” he says. “They need you at this time. I know it’s tough out there, but I have a feeling that there are many people in our position or soon to be in our position.”
