The average Canadian consumes over 60 litres of beer annually. However, despite the enduring popularity of the beverage, sales have been declining since 2005.

Just last week, Moosehead Breweries announced it will be laying off half of its unionized staff at its Saint John facility. The cuts are directly related to the loss of a major brewing contract.

Companies like Moosehead have been struggling for a while as they try to keep up with a changing market.

Over the past decade, beer sales have dropped seven per cent in Canada, while wine sales have increased by the same amount.

Saint John resident Daniel Leger says he buys more wine than beer.

“It seems to me that palates are getting more refined and I’m seeing a lot more people going into craft breweries and things like that,” says Leger.

Maritime beer blogger Todd Beal agrees. He says it is no surprise that the craft industry is expanding while traditional breweries struggle.

“When I was 19 or 20 years old, people picked their brand and that is what they bought every Friday night for the rest of their life,” says Beal. “That is not happening anymore. People want to experience new things. They’re having different foods now. They want something that enhances the experience of the food.”

Another factor impacting the beer market is the state of the local economy. When the economy is lagging, fewer people are inclined to buy lagers.

In addition, more, and more of Moosehead’s main customers are moving out of the Maritimes to find work.

In explaining the pending layoffs, Moosehead pointed out that its market is migrating west.

“Every time I see another planeload of young men go out to Alberta, that makes me cry, because those are our consumers,” says Moosehead Breweries President Andrew Oland.

“Even when they do come back, they are not here for as long as we would like.”

As Moosehead prepares for layoffs, the hospitality industry is encouraging customers to support local.

“It keeps jobs here and I think that’s very important,” says pub owner Kevin Ferguson. “We’re always talking about jobs going out west. Well let’s try to keep some of our jobs in Saint John.”

With files from CTV Atlantic's Mike Cameron