KITCHENER, ON--(Marketwired - January 05, 2017) - Brick Brewing Co. Limited ("Brick" or the "Company") (
This move by Brick represents the final step in consolidating operations to a single site to improve manufacturing efficiency and competitiveness. Brick will be in position to perform all activities that are currently split between Formosa and Kitchener in the upgraded Kitchener location. Coincident with the initiation of the expansion, Brick will be marketing the Formosa site for sale. Deloitte Corporate Finance Inc. is advising Brick regarding the Formosa sale. Parties interested in acquiring the Formosa site and associated brands should visit www.deloitte.ca/formosa for more information.
George Croft, President & Chief Executive Officer, commented, "We are hopeful that a buyer will emerge for Formosa in the months ahead. Given that the Formosa site began producing beer in 1870, it would be wonderful to see a new owner continue that rich history of brewing. To our employees in Formosa, we are deeply appreciative of your hard work and dedicated commitment over the years and we will do all we can to minimize any negative impacts on employees in the months ahead."
Brick anticipates completion of the Kitchener expansion by July 2017, and to exit from Formosa no later than September 2017. Brick has been successful in securing $1.75 million in funding from a key co-pack customer along with an extension to the current production contract until December 31, 2022. Other contractual terms remain unchanged. On completion, Brick expects to realize annual recurring savings of at least $0.6 million per year. Proceeds from the Formosa sale will also be utilized to fund the expansion project.
Croft added, "It is clear that a single site with full capabilities is the ideal end state solution to enhance both our competitiveness and our ability to serve our customers."
About Brick Brewing
Brick is Ontario's largest Canadian-owned brewery. The Company is a regional brewer of award-winning premium quality and value beers and is officially certified under the Global Food Safety Standard, one of the highest and most internationally recognized standards for safe food production. Founded in 1984, Brick Brewing Co. was the first craft brewery to start up in Ontario, and is credited with pioneering the present day craft brewing renaissance in Canada. Brick has complemented its Waterloo premium craft beers with the popular Laker brand. In 2011, Brick purchased the Canadian rights to Seagram Coolers and in 2015, secured the exclusive Canadian rights to both LandShark and Margaritaville. In addition, Brick utilizes its leading edge brewing, blending and packaging capabilities to provide an extensive array of contract manufacturing services in beer, coolers and ciders. Brick trades on the TSX under the symbol BRB. Visit us at www.brickbeer.com.
All statements in this press release that do not directly and exclusively relate to historical facts constitute forward-looking statements as of the date of this press release. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "anticipate", "seek", "plan", "believe" or "continue" or the negatives of these terms or variations of them or similar terminology. Although the Corporation believes that the expectations and assumptions reflected in these forward-looking statements are reasonable, undue reliance should not be placed on these forward-looking statements, which are not guarantees and are subject to certain risks, uncertainties and assumptions, which may cause actual performance and financial results to differ materially from such forward-looking statements. The forward-looking statements included in this press release are made only at the date of this press release and, except as required by applicable securities laws, the Corporation does not undertake to publicly update such forward-looking statements to reflect new information, future events or otherwise.
For further information:
Chief Executive Officer
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