In a move the partners say underscores the resilience and collaborative spirit of the craft beer industry, Vancouver Island Brewing (VIB) has announced an innovative partnership with Phillips Brewing & Malting Company.

This strategic alliance, set to commence on Nov. 1, will see Phillips take over the production and packaging of VIB's beloved craft beers.

The partnership comes as a creative solution to mounting economic pressures, including a 35 per cent rent hike at VIB's current location and ongoing inflation concerns. Rather than shuttering operations entirely, VIB has chosen to adapt, ensuring its 40-year legacy continues to flow from local taps.

"After 40 years of serving the craft beer community on Vancouver Island and beyond, it was important for us to find a craft brewery whose operators also have deep, local roots and whose commitment to excellence and quality matches our own," said Thom Riley, VIB's general manager.

This collaboration between two stalwarts of Victoria's brewing scene highlights a growing trend in the craft beer industry: strategic partnerships that allow brands to survive and thrive in an increasingly competitive market. By outsourcing production to Phillips' state-of-the-art facilities, VIB can continue to offer its popular brews like Islander Lager and Mystic Haze without compromising on quality or local production.

The agreement goes beyond mere production. VIB will maintain a small-batch brewing facility, allowing for continued innovation and the development of new recipes. This hybrid model could serve as a blueprint for other craft breweries facing similar challenges.

While the move will result in some job losses in VIB's operations department, it also represents a commitment to preserving the brand and its place in the local market. The company has pledged to support affected employees in their transition, potentially opening doors within the broader craft brewing community.