Lapland brewery relies on winter tourism as financial pressures mount

A small brewery in Rovaniemi is counting on the winter tourist season to ease its financial difficulties, Yle reports. The company is undergoing restructuring with debts of just under 200,000 euros and is negotiating payment plans with creditors.

Lapin panimo is preparing for its busiest sales period, winter and Christmas, but its chair, Antti Kuivalainen, says the brewery may not be able to withstand another setback. Last winter, severe cold reduced sales at a crucial time as people stayed indoors and some restaurants closed.

Unlike many breweries, which make most of their sales in summer, Lapin panimo mainly supplies restaurants in Lapland that rely on winter tourism. Local residents buy its beer in summer, Kuivalainen says, but not in sufficient quantities to make up for the seasonal difference. He also says shops are less willing to stock products that sell slowly.

Kuivalainen says a major change in weather, such as snow melting or a severe cold spell, could threaten the brewery’s continued operation. Demand is also affected by consumers spending cautiously and drinking less alcohol. Esa Salminen, communications coordinator for the Finnish Craft Brewers Association, says younger people drink less, and Finnish alcohol consumption is now below the European average.

Salminen says consumers under financial pressure are more likely to choose cheaper drinks. Kuivalainen also says fewer groups of men from Finnish companies are travelling to Lapland, which has affected sales. “Even carefree drinking in restaurants has declined,” he says.

Lapin panimo’s products include lighter and non-alcoholic beers aimed at women, a category Salminen says has growing appeal. He says craft beer demand and supply have diversified, though Kuivalainen says Lapland has not seen the same growth in craft beer as southern Finland.