Steelback Brewery

Lore & Background

Steelback Brewery's roots trace to September 2002, when Frank D'Angelo sought expansion space for his juice company, D'Angelo Brands. He found a site in Tiverton, Ontario, for sale by Barry Sherman, founder of Apotex. The facility included a brewery that D'Angelo initially intended to sell, but he instead decided to start a beer company with Sherman's funding. Steelback began selling beer in February 2004, launching with an expensive local television ad on the Super Bowl XXXVIII broadcast.

The company's promotional strategy was extensive, including sponsorship of sporting events and venues such as the Sauble Speedway, several community arenas in Toronto, the Grand Prix of Toronto, a Formula One racing team, and the Toronto Argonauts. In 2006, Steelback purchased naming rights to the Steelback Centre in Sault Ste. Marie for $1.35 million over 10 years, a fee that went largely unpaid. That same year, the company explored reviving the defunct Ottawa Renegades of the Canadian Football League under the name Ottawa Steelback, though there was speculation the bid was a publicity stunt, and the offer was declined by the CFL.

In November 2007, D'Angelo sold his majority stake to minority partner Barry Sherman, though D'Angelo remained chairman. Later that month, citing poor revenue, high marketing costs, and the weak Canadian dollar, both Steelback and D'Angelo Brands filed for bankruptcy protection. In early 2008, it was revealed that the companies owed Sherman's Wasanda Enterprises Inc. $101.2 million at the time of D'Angelo's sale. Sherman cited D'Angelo's extravagant spending on advertising (which alone exceeded revenues) and the poor quality of the beer. Steelback emerged from bankruptcy in May 2008 under new ownership by Jonathon Sherman, with a more local and minimalist marketing approach. The brewery added an image of the Kincardine lighthouse to its packaging and aimed to provide 'craft beer at mainstream prices.' In July 2009, company president Ian MacDonald left, followed by 35 of 39 staff being laid off. The brewery quietly shut down in January 2010 with no official announcement.

Reader's Guide

Steelback Brewery's significance lies in its rapid rise and fall as a Canadian brewery that combined aggressive marketing with financial instability. Its launch during the Super Bowl XXXVIII broadcast and extensive sponsorship of sports teams and venues—including a Formula One team and the Toronto Argonauts—demonstrated a high-risk promotional strategy that ultimately exceeded revenues. The brewery's bankruptcy in 2007 and the revelation of $101.2 million in debt to Barry Sherman's company highlighted the consequences of overspending on advertising and poor product quality. After emerging from bankruptcy in 2008, Steelback attempted a more local, minimalist approach, winning several awards at the Ontario Brewing Awards and Canadian Brewing Awards between 2007 and 2009, including gold medals for its dark lager and honey brown beers. However, low sales led to mass layoffs in 2009 and a quiet closure in January 2010. The brewery's legacy includes its brief but notable presence in Canadian beer culture, its role in the revival of the Ottawa Renegades bid (which was declined), and its eventual disappearance without official announcement.