US: Boston Beer, City Brewing team up
The former Rolling Rock brewery in the US is set to start brewing Samuel Adams.
Boston Beer Co. confirmed yesterday (3 April) that it has signed an agreement with a subsidiary of City Brewing to brew some of its beer in Latrobe, Pennsylvania.
City Brewing completed the purchase of the brewery, which had previously been used to brew Rolling Rock, from InBev in September last year. InBev had sold the Rolling Rock brand to Anheuser-Busch in May last year for US$82m.
Boston Beer and City Brewing will begin work on upgrading the brewery to allow for the brewing of Samuel Adams. Brewing of Boston Beer products is expected to begin during the second quarter.
"This agreement gives us increased flexibility," said Martin Roper, president and CEO of Boston Beer. "We felt it was important that we arrange additional brewing capacity to augment what we can brew in our other brewing locations and provide security and flexibility of supply while we continue to review our long-term brewing strategy."
Boston Beer said it does not expect the agreement to have an impact on brewing operations at its other breweries in Boston and Cincinnati.
Boston Beer's investment in the brewery is expected to be between US$3m and $7m. The two parties are also discussing the potential of Boston Beer having an ownership interest in the brewing facility.
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