Happy Backyard Brewery On January 7, 2021, Max Peter was contemplating the tumultuous year of 2020 and its impact on operations at Happy Backyard Brewery (HBB). Many recent events, both within the brewery and externally, had affected his business. Management had recently restructured financially after buying out some of the original partners, and the remaining owners and management were still dealing with the effects of the global COVID-19 pandemic. Peter was pondering what the next steps for HBB should be given the volatile nature of the industry in these unprecedented times. Company History HBB was formed in November 2015 by six partners in Medicine Hat, Alberta, Canada, following the removal of minimum production requirements in the province that had presented a barrier to entry for smaller-scale craft beer producers. At the time, Medicine Hat bylaws restricted brewery operations to areas zoned only for industrial use. Site locations were limited to two industrial parks in the city: the southwest light industrial park (an older, established industrial park) and Brier Park (a newer, less established park on the outskirts of the city). Canada was also in a period of economic recession, and while buildings for lease were readily available, very few suitable buildings were up for sale. Leasing was not considered a feasible option, as installed brewery equipment was expensive and exceedingly difficult to move should a new lease be required. Building purchase was considered the only viable option. A location for the brewery was secured in February 2016 at the former location of a Culligan water plant. The recessionary conditions that existed at the time also meant that construction contractors were available to start work on the brewery immediately. Construction began following a month of demolition, brewing equipment was received in May 2016, and brewing commenced in early July. Following a week of private events, HBB officially opened its taproom to the public on August 12, 2016, just six short months after taking possession of the building. HBB opened with a tremendous amount of excitement in the community, being the first brewery to open in Medicine Hat since the early 1900s and during a period when most news announcements were about the closure of more and more local businesses. HBB was also the 40th Class E (liquor manufacturing) facility to open in Alberta. According to Peter, the level of support for the brewery was so great that the city nearly drank the brewery dry in the first two weeks of operations. The initial business plan had included distributing beer throughout Alberta, but with the strong local support, HBB was unable to distribute beyond Medicine Hat in the first partial year of operation. Within a few weeks of opening, additional fermentation equipment that was in place for future expansion was brought online to boost production. By January 2017, HBB was sending its first shipments to Connect Logistics Services (CLS), the central government- controlled warehouse that allowed for a structured distribution system for any licensee in Alberta.