Microbrewer hopes to create a buzz this summer: Thunder Bay's source of high-end spirits.

Geoff Schmidt hopes his golden days are ahead.

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This spring, the Thunder Bay small brewer was anxiously awaiting word for permission to start stocking his premium suds on Ontario liquor store shelves.

It'll help kick-start the summer for Schmidt who launched the Great White North Craft Brewery last year and has endured the financial peaks and dives of a first-time entrepreneur.

He's counting on a hot, dry summer to turn more thirsty local drinkers onto his premium Port Arthur Pale Ale.

It's tight floor space inside the 2,000-square-foot former dry cleaning store on Red River Road in the city's Port Arthur business district.

Most of his equipment, the tanks, brew house, glycol chiller and boiler came from a brew pub in Mankato, Minnesota.

The bottling line machinery came from a brewery in Edmonton. For now, he sells about 105 to 110 cases of beer a month almost straight out of the vat, producing a 10-hectolitre batch (one hectolitre is 100 litres) every two weeks.

It's about a third of what he's capable of producing. He's hoping business picks up this summer and forces him to hire an extra hand to help with production.

But it's been a slow process to navigate the paper shuffle of first, getting licensed to sell in Ontario, then waiting to see if it is approved for the Liquor Control Board of Ontario stores.

"I would have to pay $3,000 to get into the Beer Store, and that's money I don't have."

Every February, the LCBO reviews submissions for new products among thousands of applications, both domestically and internationally Schmidt filed his application in January, but he's expected to wait in the processing queue for months.

Working as a contractor in Alberta doing engineering and instrumentation work, enabled him to save a nest-egg for start-up capital. Largely self taught, he was a home brewer and experimented on a small scale with different flavours. But it's been a huge jump from producing 20 litre-batches to more than 1,000 and spending thousands of dollars on grain, hops and packaging.

"I haven't worked in a brewery before, so the learning curve on a large system is huge."

Local support has been good, but market exposure is a big problem. "I'm not selling enough to make myself visible."

After an initial radio splash last summer and a booming month of August, Schmidt quickly ran out of advertising money. Sales dropped off after Labour Day and into the fall before picking up again around Christmas.

Much of his marketing budget was quickly axed at start-up when he started installing equipment.

It's been a break-even venture so far, but his operating capital is winnowing down.

"I'm feeling the crunch, personally"

Reaching a wider audience isn't easy.

As a small batch producer, he's further limited on how he can promote his product. There's regulatory restrictions in Ontario on what he can do with sampling and free giveaways.

Most of his sales are walk-ups. Lately, he's started selling kegs to a handful of local bars and restaurants. "They're keeping me afloat."

Schmidt tries to promote his product as more of sipping drink. A six-pack sells for $12.40, twelves go for $22.95 and case of 24 is $41.95.

"Being a small brewer I can't produce it for much less than what I'm charging."

He buys the standard 341-millilitre bottles from a Montreal recycler who washes and sanitizes them.

Schmidt believes the local market is there, it's just a matter of getting more exposure "and changing people's mindset as well."

Thunder Bay beer drinkers are fiercely loyal to the mainstream brands.

A decade ago when microbreweries were popping up everywhere, Schmidt jokes Thunder Bay's idea of a strange, exotic beer was Old Milwaukee.

"They're a blue collar drinker and it's a matter of educating them."

This summer will be the deciding factor.

"It should pick up and I'll be in the liquor stores and I'll have a few months of selling kegs under my belt.

"If by July, I'm sitting here making a batch every two weeks still, I can't support this business any longer and I'll be done.

"I'll chalk it up to my inexperience and think maybe it doesn't work in Thunder Bay. But I think it'll turn around this summer."

By IAN ROSS

Northern Ontario Business