2007-02-03

Hamilton's Little Brewery

The Hamilton Spectator
(Feb 3, 2007)
Even if the plant stays open, even if all the workers hold on to their jobs, even if the Lakeport sign stays up, there's no way to avoid the sense of loss that comes with the sale of a local business icon.

Lakeport is as Hamilton as Tim Hortons -- at least as Hamilton as Timmie's was until Ron Joyce let go of it. There's another little piece of our self-definition gone by the wayside.

It is always difficult when a local business is absorbed into a bigger entity, particularly when that entity isn't a local, or even a national one. And Lakeport Brewery is a difficult one to let go of emotionally because it is such a Hamilton success story.

This is the little brewery that could, the little brewery that rose to third place among Canada's beer kings, behind Molson and Labatt. It's the brewery that was perched on the cliff of bankruptcy in 1999, ready to topple over when Teresa Cascioli was asked to take over the company.

Over the next six years, Cascioli pushed the company forward, increasing its share of the market, firmly branding our hometown beer. Cascioli, a McMaster University commerce grad who was raised on the east Mountain, provided leadership, strategy and inspiration to a company sorely in need of all three. Put that together with the outstanding efforts of local workers and you end up with a company that went from the brink of extinction to becoming a coveted asset in a very short time.

Cascioli ruffled feathers along the way though, as her own face and personality became a critical component of the Lakeport brand. It's a strategy that has worked well in other industries -- the late Dave Thomas of Wendy's and Christine Magee of Sleep Country are two of the clearest examples of the success of the CEO's personal approach. Cascioli's ability to draw media attention worked very well from the business perspective, but one wonders if she also draws more criticism because of her gender.

Some people, especially Lakeport workers, seem to take the takeover by Labatt personally. But the reality is that Cascioli's decision this week to recommend the $201.4 million offer from Labatt, owned by Belgian beer giant InBev, is the kind of business decision made numerous times each day in boardrooms across the country.

The success of Lakeport is not the work of a single person, regardless of the strength of Cascioli's personality and vision. Lakeport's success at re-establishing and strengthening itself is a tribute to all who work there, not to mention the beer drinkers who have adopted Lakeport as their own.

Success made Lakeport a serious competitor to Labatt; it's easier to buy the smaller company than compete with it. Depending on what happens to their jobs, that could make Lakeport workers victims of their own success. It's enough to make anyone cry in their beer.

Lee Prokaska

Editorials are written by members of the editorial board. They represent the position of the newspaper, not necessarily the individual author.
Used with permission from The Hamilton Spectator, www.thespec.com Copyright The Hamilton Spectator. All rights reserved.