Molson Coors to Cease Production at Irwindale, Calif., Brewery; Signs Agreement with Pabst Giving Them an Option to Purchase ...
January 06 2020 - 02:40PM
Business Wire
Molson Coors Beverage Company (NYSE: TAP; TSX: TPX) today
announced plans to cease production at its Irwindale, Calif.,
brewery by September 2020.
Additionally, Molson Coors has entered into an agreement with
Pabst Brewing Co. which gives them an option to purchase the
Irwindale facility.
“This move will allow us to optimize our brewery footprint while
streamlining our operations for greater efficiency across the
network,” said Chief Integrated Supply Chain Officer Brian Erhardt.
“While it was a very difficult decision, we have extra capacity in
our system and Irwindale’s production can be absorbed by other
breweries in our network.”
Today’s announcement comes on the heels of a plan recently
announced by Molson Coors to revitalize and restructure the
business to get back on track. While ceasing production at the
Irwindale facility is not part of the larger revitalization plan
announced in October 2019, it does not impact previously announced
cost savings guidance.
The Irwindale brewery, which opened in 1980, employs
approximately 470 people and produced 4.8 million barrels, shipped
to 261 independently-owned distributors in 2019. Brands produced
include but are not limited to: Miller Lite, Coors Light, Miller
High Life, MGD, Steel Reserve, Miller 64 and several brands for
Pabst. Over the next nine months, products currently produced in
Irwindale will be transitioned to other breweries, primarily
Golden, Colo., and Fort Worth, Texas.
FORWARD-LOOKING STATEMENTS:
This press release includes “forward-looking statements” within
the meaning of the U.S. federal securities laws. Generally, the
words “believe,” “expect,” “intend,” “anticipate,” “project,”
“will,” “outlook,” and similar expressions identify forward-looking
statements, which generally are not historic in nature. Statements
that refer to projections of our future financial performance, our
anticipated growth and trends in our businesses, and other
characterizations of future events or circumstances are
forward-looking statements. Although the Company believes that the
assumptions upon which its forward-looking statements are based are
reasonable, it can give no assurance that these assumptions will
prove to be correct. Important factors that could cause actual
results to differ materially from the Company’s historical
experience, and present projections and expectations are disclosed
in the Company’s filings with the Securities and Exchange
Commission (“SEC”). These factors include, among others, the impact
of increased competition resulting from further consolidation of
brewers, competitive pricing and product pressures; health of the
beer industry and our brands in our markets; ability to dispose of
the Irwindale Brewery; economic conditions in our markets;
impairment charges; our ability to maintain
manufacturer/distribution agreements; changes in our supply chain
system; availability or increase in the cost of packaging
materials; success of our joint ventures; risks relating to
operations in developing and emerging markets; changes in legal and
regulatory requirements, including the regulation of distribution
systems; fluctuations in foreign currency exchange rates; increase
in the cost of commodities used in the business; the impact of
climate change and the availability and quality of water; loss or
closure of a major brewery or other key facility; our ability to
implement our strategic initiatives, including executing and
realizing cost savings; our ability to successfully integrate newly
acquired businesses; pension plan and other post-retirement benefit
costs; failure to comply with debt covenants or deterioration in
our credit rating; our ability to maintain good labor relations;
our ability to maintain brand image, reputation and product
quality; and other risks discussed in our filings with the SEC,
including our most recent Annual Report on Form 10-K and our
Quarterly Reports on Form 10-Q. All forward-looking statements in
this press release are expressly qualified by such cautionary
statements and by reference to the underlying assumptions. You
should not place undue reliance on forward-looking statements,
which speak only as of the date they are made. We do not undertake
to update forward-looking statements, whether as a result of new
information, future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20200106005910/en/
News MediaMarty Maloney,
(312) 496-5669
Investor RelationsGreg
Tierney, (312) 496-5853
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