Canada, QC: Labatt Breweries investing C$110 million in Quebec’s economy

Labatt Breweries of Canada is investing C$110 million in Quebec’s economy that includes a significant environmental enhancement to its Montreal brewery through a new capital program that runs from 2019-2022, the Canadian Packaging reported on November 15.

Both Quebec and Montreal will benefit from the investment, with C$43.7 million going directly into Labatt’s Montreal brewery to fund increased brewing capacity and the implementation of KeelClip(™) – a first-of-its-kind technology in North America that uses a sustainable, fibre paperboard packaging system instead of plastic.

The remainder of the C$110 million investment will go towards non-brewery operations across the province including distribution and technology enhancements, and commercial initiatives. This investment will not only help accelerate the province’s post-COVID economic recovery, but it will also lead to a significant reduction in single-use plastic, signalling the company’s commitment to Montreal and the province of Quebec.

“We’re proud of our history in Quebec and we’re excited to continue our commitment to the province with this important investment that will improve our operations and have significant environmental benefits,” says André Gravelle, Montreal Brewery General Manager, Labatt Breweries of Canada. “We know sustainability is a priority in the province and by introducing North America’s first KeelClip(™) system right here in Montreal, we’re positioning our brewery to be a leader in sustainability in the province and setting up for future growth.”

KeelClip(™) is a minimal fastener that is made from recycled fibre paperboard and replaces plastic packaging rings, tops, and shrink film. The innovative solution uses a high-tech automated packaging system, which will enable the Montreal brewery to eliminate nearly 100,000 kg of plastic by early 2022 — that’s more than the weight of 77 mid-size cars of plastic no longer going into the landfill. Once underway in other Labatt operations, this investment is projected to further cut Labatt’s single-use and recyclable plastics by a total of 242,000 kg by 2024.

In a bid to meet growing market demand, Labatt is using the remainder of the C$43.7 million to expand production and install three new tanks at the Montreal brewery to increase brewing capacity. With the new upgrades, the company can ramp up production for new innovations, such as seltzers and ready-to-drink products.

“This investment comes at an important time and helps us move from strength to strength. We’re now able to make more of our most sought-after products and have the flexibility required to adapt to changing consumers tastes and preferences throughout the province,” says Gravelle.

Labatt has been operating in the province of Quebec for 143 years and has been brewing beer at its Montreal brewery since 1956. For almost 175 years, Labatt has had a longstanding history of substantial investments in its brewing operations and in supporting national, provincial, and local economies across Canada.

About the capital program

Labatt is investing C$110 million province-wide in Quebec from 2019-2022.

The investment includes C$43.7 million directly into the Montreal brewery to support new
packaging technology and production expansion.

A major part of this investment is installing and switching to the KeelClip(™) packaging system
– the first-of-its kind in North America.

In a bid to meet growing consumer demand, Labatt is installing a new fermentation tank in the
Montreal brewery. This will increase capacity and packaging flexibility for new innovations such
as seltzers and ready-to-drink products.

Labatt has a close to 175-year history of substantial investments in its brewing operations and in supporting national, provincial, and local economies across Canada. From 2011-2021, Labatt has invested over C$200 million in the Montreal brewery and C$1.125 billion in all its operations Canada-wide.

15 November, 2021