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Oland Brewery Warns of Leaving Nova Scotia Over Soaring Costs

A historic brewery faces pressure

Oland Brewery, one of Nova Scotia’s most well-known beer makers since the 1800s, has raised alarms that it may no longer be able to stay in the province. The reason is rising utility costs, especially Halifax Water’s proposal to increase rates by 35 per cent.

For a brewery that relies heavily on water to produce beer, such a big increase could push operating costs too high. The company’s general manager recently wrote a letter to the province’s regulatory and appeals board, warning that Nova Scotia may no longer be an affordable place to do business.

The letter explained that as governments work to remove trade barriers between provinces, companies like Oland may have no choice but to move production to other parts of Canada where the business environment is less costly.

Industry experts weigh in

Ed McHugh, a business professor who teaches in Halifax, said the sudden increase in costs could disrupt the company’s business planning.

“This industry uses a huge amount of water,” McHugh explained. “When a rate hike this large comes in the middle of planning, it can throw everything off balance. It’s very difficult for a company to simply use less water—it’s not an option in brewing.”

He added that Oland’s is facing a much tougher business environment compared to 20 years ago. With the growth of the craft beer industry, large companies no longer have the same dominance they once did. Smaller breweries now provide customers with more choices, making it harder for traditional brands to stay on top.

Ownership and competition

Oland Brewery is owned by Labatt, a major brewing company that also produces Budweiser and Alexander Keith’s. While Labatt has resources across Canada, Oland’s local roots in Nova Scotia run deep. The thought of production leaving the province is worrying for workers, beer lovers, and local businesses that benefit from the brewery’s presence.

McHugh said the company’s struggle highlights a larger problem. “This is a very competitive market now, and for Oland’s to stay competitive, they need costs they can manage. Rising utility bills don’t make that any easier.”

What comes next?

A public hearing about Halifax Water’s proposal is scheduled for next week. Oland Brewery has formally joined the process to argue against the rate hikes. The company hopes that decision-makers will consider the impact such costs could have on local businesses.

For now, the possibility of Oland leaving Nova Scotia remains uncertain. But the warning shows how even historic and well-established companies are vulnerable when expenses rise too quickly.

A community concern

Oland Brewery has been part of Nova Scotia’s culture and economy for more than a century. Its possible departure raises concerns not only about jobs, but also about the identity of the province’s brewing industry.

Beer fans, workers, and local businesses are waiting to see whether the brewery can remain in the province where it has been brewing since the 1800s—or if rising utility costs will push it to relocate.