Anheuser-Busch InBev’s Canadian beer arm, Labatt Breweries of Canada, has said that it will switch some brewing for the Keith’s beer brand out of its Novia Scotia heartland, in a move that will result in job losses.

Labatt said yesterday (23 November) that it will brew Keith’s at facilities in Ontario, Quebec and Newfoundland in Canada in response to the brand’s growing national appeal. As a result, production at the brand’s ‘home’ Oland brewery in Halifax, Nova Scotia, will be scaled back.

Up to 39 jobs could be lost at the Oland brewery, including 17 temporary positions and 22 full-time posts. However, Labatt said that it is in talks with trade unions on potentially reducing the loss of full-time posts from 22 to ten. It said that it would continue to employ around 200 people in Nova Scotia following the move.

“[Keith’s] has grown from a regional favourite to become Canada’s number one domestic speciality beer, said Labatt’s vice president of marketing, Richard Musson. “To accommodate this growth, we are expanding the brewing of Keith’s to three more of our regional breweries. That will allow us to ensure consistent, sustainable supply of Keith’s to consumers.”

At the same time, the group said that it would invest $500,000 to add production capacity at the Oland brewery for Budweiser brands. “This will supplement the volume capacity being made available by the transfer of Keith’s,” said Labatt. The work is expected to be completed in the first half of 2011.

Labatt lost market share in the third quarter of 2010 in Canada as volume sales fell by 5.4% for the three months in a market that shrank by 2.4%. The brewer’s net sales fell by 2% for the quarter, compared to the same period of 2009.

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