E-Malt.com News article: Canada: AB InBev Labatt refuses to sell Lakeport Hamilton Brewery assets to local craft brewer

AB InBev Labatt has refused to sell the assets of its Lakeport Hamilton Brewery to the Minhas Creek Brewing Company, CNW reported on April, 28.

Ravinder and Manjit Minhas, the brother sister team of young entrepreneurs declared their interest in acquiring the Hamilton Brewery, its 143 full time union employees and taking over the lease on the building (approximately C$1,000,000/year).

As stated in their letter to AB InBev Labatt the Minhas Creek Brewing Co. said that they would be willing to purchase the majority of the brewery assets from Labatt. The offer to purchase did not include the equipment Labatt declared they would be moving to another facility as well as any of the trademarks associated with the Brewery. The Minhas' also stated they would pay fair market value for this equipment and had already budgeted up to C$50 million for this expansion.

The Minhas' received a response this week from AB InBev Labatt stating they would not sell any of the equipment and would be using it in their other facilties.

The Minhas Creek Brewing Company said it was disappointed that Labatt didn't feel it was worth their time to explore any possibility of a deal, expecially considering the impact on the 143 full time employees and their families as well as numerous local suppliers.

Despite the Labatt rejection to making a deal, the Minhas' have decided to pursue the potential of placing a brewery in Hamilton to continue its brewing legacy.



28 April, 2010