E-Malt.com News article: 3276

Canada: Labatt Breweries of Canada is closing its brewery in the Vancouver suburb of New Westminster, putting 180 people out of work. The move to improve efficiency takes effect April 21, Labatt said. “The decision to close the brewery was extremely difficult for all involved,” Labatt president Stewart Gilliland said in a release. “This decision is based on our need to reduce excess capacity in Western Canada and improve our long-term competitive position.”

The company will continue to operate its existing plants in Creston, B.C., and Edmonton, both of which are scheduled for upgrades, The Canadian Press revealed on September 16. Labatt plans to pour $20 million into the Creston operation, where its Kokanee brand is brewed. The company will invest a further $14 million in the Edmonton operation to expand production of its Budweiser label.

Labatt, which operates breweries from coast to coast and distributes in 40 countries, is part of Belgian-based beer giant InBev S.A. John Brock, chief executive of InBev, said 120 people will be hired to cope with relocation of production in Canada.

InBev is the world’s biggest brewer by volume. Its profit rose 20 per cent to 205 million euros, about $248 million US, in the January-June period from 171 million euros in the first half of 2003.

Labatt said it will offer separation packages as set out in a collective agreement to affected New Westminster employees.

In addition, Labatt said it has set aside a proposed $1-million support fund to help employees during the transition. A closure agreement is to be negotiated with Local 300 of the Brewery, Winery and Distillery Workers’ Union.

Labatt also said that after the brewery – which has been operating since 1879 – has been decommissioned, it will donate part of the New Westminster brewery lands, worth more than $250,000, to the Royal Columbian Hospital Foundation.


18 September, 2004