Toronto brewery has survived for 25 years amid Ontario’s evolving alcohol industry

With all the ups and downs that come with the economy and the beer industry, Toronto-based Steam Whistle Brewing has managed to stay not just afloat but successful for the past few decades, and in just a couple of days, it is preparing to celebrate its 25th anniversary.

The idea for the brewery was dreamed up in the spring of 1998 by three friends — Greg Taylor, Camp Heaps, and Greg Cromwell — on a canoe trip in Ontario. The trio had been colleagues at Upper Canada Brewing Company before it was bought out, and in March 2000, the self-named “Three Fired Guys” founded the company.

Born at the John Street Roundhouse, Steam Whistle uses four all-natural ingredients to brew its Pilsner — a beer that gleams with a golden hue and offers aromas of fresh-baked bread and saaz hops. Built in 1929, the historic building that now houses the Steam Whistle Kitchen and Tap Room was formerly a Canadian Pacific Railway steam locomotive repair facility.

The brewery’s location has always been part of its identity, with co-founder Greg Taylor calling it their “cathedral of beer.”

The early days of the company weren’t without their challenges, and as a startup brewery, Taylor says having a presence in downtown Toronto — just a stone’s throw away from major attractions like the CN Tower and Rogers Centre — made all the difference.

Another factor Taylor attributes to the brand’s success is their idea to “do one thing, really, really well”— a motto the company still lives by. “We started making our Pilsner, and it took off very quickly. We thought, hey, maybe we should stick to this and simplify the business plan to send a message to consumers that we are focused on being experts at brewing this,” he told blogTO.

Over the years, Steam Whistle has been able to weather a variety of unprecedented challenges, including the COVID-19 pandemic. Like many other companies in the hospitality industry, the brewery faced a tough road during lockdowns, and the Roundhouse, with its normally bustling taproom and packed events space, was forced to shut down its operations.

“Everyone was affected. Our business was really struggling through that. You’re not getting any customer experience going through. You’ve got employees laid off and no revenue, so that was very tough,” Taylor said.

“Across the board, I think the beer industry has not recovered and may never completely recover from the pandemic, because sales dropped considerably for the restaurant industry, and it just hasn’t come back.”

Despite these setbacks, Steam Whistle kept pushing forward and remained focused on adapting to the shifting landscape of the alcohol market. One significant and recent change came with the Ontario government’s decision to allow more accessibility for beer sales in retail locations like convenience stores and grocery stores. The change, Taylor says, required an immense amount of preparation.

“It’s been very challenging to meet the changing marketplace in such a short period of time. The Ford government had announced that this would take place at the beginning of 2026 originally, and then all of a sudden, midway through 2024, they said, change of plans and hit the go button,” he explained.

In response, the company rapidly increased its presence, quickly expanding from 1,500 retail locations in Ontario to around 4,5000 within a matter of months. This required a massive logistical effort from the tram, but Taylor credits his employees for their hard work and dedication.

“It was a lot of work to get up and going and a lot of change for our team, but they managed it well. They’re a resilient bunch, and we managed to have presence in most of the new grocery stores and a large amount of the new convenience stores.”

The changing retail landscape wasn’t the only challenge the brewery faced. In February, the LCBO announced that it is preparing to increase a fee it charges brewers, which translates to a 4.4 per cent jump in what the liquor agency calls “cost of service.” The increase applies to all beer products, both imported or domestic, that the LCBO sells through their system and distributes to retail outlets and bars.

“It only applies to beer going through the LCBO system to be sold in their stores, or beer that’s going through the LCBO warehousing system to be sold in other retailers. So in our case, we sell beer in the LCBO, so the fees gonna go up on those retail points of sale, but not across the board in Ontario for us,” Taylor explained.

Although Taylor expressed disappointment about the fee increase, he also acknowledged the broader economic factors at play. “You don’t want to see an increase. We’re disappointed and unhappy to hear that they’re bringing this in. It’s the last thing anybody needs in the middle of this trade war. But it’s an inflationary time, and I’m not surprised to see them at least attempt to bring in more money for their service.”

Still, Taylor says Steam Whistle is “lobbying hard” against the increased fee. “It could be turned around; we’re hopeful that the LCBO will reconsider that because it makes it very expensive to sell beer in the LCBO. Raising the price isn’t the best idea.”

Looking back on the past 25 years, Taylor feels a deep sense of pride about all the company’s accomplishments but acknowledges that there are still challenges on the horizon, including inflation, the continued shift in alcohol sales, and the unpredictability of the global market.

“It’s been a really wild ride, and we’re really happy where we’re at. There’s always challenges. You wake up in the morning and say, ‘What else are they going to throw at us?'” he said.

“First, COVID, then inflation and declining beer sales across the country, and now trade wars. That’s why we come to work in the morning, is to fight the good fight. I don’t expect that we’re going to see the U.S. take over our country, I don’t expect these trade wars to go on for a long time,” Taylor added.

“Any other challenges that come up, we’re ready for them and excited for the future.”

Steam Whistle Brewing is located at 255 Bremner Blvd.