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Melodee Martinuk Chronicle Staff Establishing a brewery may seem an unlikely enterprise for two businessmen who confess to not liking beer. - Nevertheless, that's exactly what Alex and Michael Ruge plan to do next year. For while they don't like drinking the stuff themselves. they do know a sound business opportunity when they see one. And brewing, they believe, is sound. "I don't drink beer - I hate the smell and taste of it; and opening a brewery isn't a dream come true," said Michael. “When- ever I see a business that I believe I can improve on, whenever I see a need, I look at the possibility of going into it. Better off"? "We're going into brewing strictly to make some money. and to make a bigger mark on the map for Waterloo. At least I don't have to worry about drinking up the products. The Ruges, coowners of Ruge Manufac- turing and Consulting Ltd. of Waterloo, plan to open a small, 25,000 case a week brewery in a Lodge Street building cur- rently leased by Pop Shoppe. In time they hope to see that venture grow into a province-wide chain of breweries, possibly set up on a franchise basis. They estimate it will cost some $1.5 million to set up the first brewery. Economic optimism higher in region than across country They are more /rptimistic, in tact. than Canadian executives as a whole, Business leaders throughout Waterloo Region see better times in the year ahead in terms of sales, costs and profits for their companies. a recent 'survey shows In a semiannual survey conducted by the Laurier Institute for Business and Economic studies among 200 executives in Kitchener, Waterloo and Cambridge, 65tt per cent expect better days. a gain of lo percentage points from their view when they Were polled a year ago, Across Canada. 59.1 per cent o! business persons soc brighter months ahead, according to a Conference Board of Canada survey, _ _ Dr. J. Alex Murray. dean of the school of husism-ss and economics at Wilfrid Laurier University. and author of the Laurier Institute study, said the pessimism so prevalent in business circles across Canada appears lobe dissipating, The majority of firms (65 R per cent) expect to be in better overall financial shape by mid I986. an improve ment of almost to percentage points over December. 1981 Slightly more than 26 per cent of the respondents expect to maintain the same level of performance and one per cent expect to be in worse condition, The Huge brothers know what's brewing Make an ordinary day special for the kids with a decorated cake from "Koprkahe" Choose from dozens of cartoon characters to add tun to a party! These beautifully decorated "kakes'" are " f) available in 900 cake top designs 4 a Drop in ll choose your "Rake" 1. 8 it WI” be ready the next day THE GARFIELD C Partners carefully researched market before unveiling ambitious new plans Bakeries Ltd. KITCHENER PHONE 7‘2-1841 702 KING ST W According to Michael, the still-to-be- named brewery will produce a number of different draught and bottled beers, rang- ing from the light. milder Canadian product to the "sharper" European vari- ety. Key to the brewery's success, he said, will be the hotel market, which they plan to tap to the fullest. Initially they will concentrate on serving the Golden Trian- gle. Starting the brewery was a natural step for the Runes. whose conuany rebuilds and installs used equipment for dairies, wineries, bakeries and chemical compa- nies. Because of this connection the cousins have already acquired much of the machinery and equipment they must have but at a considerably lower cost than they would have paid had they purchased it new. Michael said that in the past year they have bought approximately $250,000 worth of bottle filling, washing and capping equipment plus other necessary machine- ry from soft drink and brewing plants. "When the better machinery comes along, it's reserved for the brewery." he said. Another plus, is that the 12,800-square- loot building which will become the brewery's home is already owned by the Ruges. Alex explained that it is perfect for a brewery because the building was once Once again, Kitchener, Waterloo and Cambridge business people are more optimistic than their national counterparts, The alrCanada survey shows 59 per cent expect to be better off, 34 per cent see no change. and slx ishead “In summary, executives have shed much of their pessimism of the past few years and are looking ahead to a brighter economic future in terms of unemployment. investment and future performance" Dr. Murray said "These expectations are in accord with those of Dr. Peter Anderson. a consulting economist, who recently maintained that Canada is heading into a prolonged period ot economic expansion "The major issues of concern for respondents In the Laurier Institute poll were ttw existing and forthcoming policies at both the federal and provincial levels. the everrpresent threat of weakened demand. and the lack of skilled labor “In spite of these concerns. "xpertations for this area are more optimistic than for the rest of Canada. suggesting the probability of continued rvmwry and growth into H186." he said, EVERY SUNDAY, 10-5 FREE ADMISSION Vendor‘s wanted cent anticipate poo/er performances in the year UPTOWN FLEA MARKET (OM Auction Building) 56 King St. North Watedoo Canadian manufacturing sector has made a 8861521 Alex (left) and Michael Ruge have been collecting brewing and bottling equipment for more than a year to use in their new brewery, scheduled to be open for business next fall. Chronlclo photo used to bottle soft drinks and thus already well as money to the venture." The Huge features the required loading docks, latro- are also negotiating with a Germa ralory, tiled floors and high ceilings. He brewer who is interested in becoming I noted that with its 1.5 acres of property partner and a German brcwmaster. there's also plenty of room for future ex- Nevertheless, both the Ruges are con pansion. fident their brewery will become th Despite the start they already have, both Ruges admit there are a few "hurdles" to be overcome before they start brewing. The biggest obstacle, Michael maintained, is simply the mountains of "red tape which we have to deal with _ getting permits and licenses," from the city and Liquor Control Board of Ontario. He added that they are now looking for investors, espe- cially professionals such as lawyers and accountants who "can bring expertise as " , .758 HEFFERNAN’S JEWELLERY Open 9:30 A "-troo PM Mon. to Sat, Goldsmithing, Diamond Setting a Jewellery Repairs 'B,tMMt Parka.“ Plus, aro ”bod St ' Waterloc 80616” But he noted om- cloud in the brightening sky “Aggregate output is being accomplished by nine per Cent fewer workers as the Canadian manufacturing sector attempts to insulate itself from escalating costs and labor problems." strong resurRence since the recessionary years of 1981-1982, when output fell I9 per cent." he said, “The Waterloo Region, considered a good barometer for the rest of the nation. is similarly emerging from the reee~ sion," Nevertheless, there is considerable optimism in the Waterloo Region. where 48 per cent of executives polled feel the employment situation will improve over the next year. Slightly more than 39 per rent think it will remain unchanged. Only ll per rent believe the situation will worsen. Dr Murray said the local wom- is brighter due to (hr influx of new companies and expansion. to mm't demand, of many small low technology businesses Most optimis tic among those polled wr-ro c-xerutivm in small and mediurrrsizod companies, By contrast to local optimism, only 29 per cent of firms across Canada feel employment will increase in the year ahead a MADE TO ORDER OR CREATED FOR YOU. CUSTOM MADE JEWELLERY well as money to the venture." The Ruges are also negotiating with a German brewer who is interested in becoming a partner and a German brewmaster. - Nevertheless. both the Ruges are con fident their brewery will become the success they envision. “We like to be optimistic about a new venture," said Alex. "The reason we think this will work is because we have been extremely conservative in our spending. This has taken a lot of planning - we're not just going out and saying 'we're going to open a brewery.' We've carefully re- searched the market and know what we're getting into." All work done on premuses Pieces shown original designs "2,490 "Emma's JEtllMU.ERV