Canadian winemaker Andrew Peller is to sell its ownership of Granville Island Brewing Company and Mainland Beverage Distribution to Molson Coors Canada's Creemore Springs Brewery.

As a result, Granville Island and Ontario-based Creemore Springs will join forces to continue brewing their beers, the companies announced yesterday (19 October).

The two Canadian craft brewers believe they will be able to offer their brands to more markets in Canada, while continuing to maintain their positions in British Columbia and Ontario.

Financial details were not disclosed but proceeds from the sale will be used by Andrew Peller to reduce bank indebtedness and for general corporate purposes.

The transaction is expected to be completed by early 2010.

"Creemore's intention is for Granville Island Brewing to continue operating as a distinct organisation benefiting from its own people, knowledge, recipes and marketing methods, in much the same way that Creemore operates in Ontario," said Jason Moore, president and CEO, Creemore Springs.