Canada: Labatt Breweries invests C$40 million in London

Labatt Breweries of Canada announced on June 28 a C$40 million investment in London, Ont., Labatt's hometown, to fund one of the largest capital expansions in its London brewery's 158-year history. When the expansion is complete, the London brewery will have the capacity to produce more than one billion bottles of beer per year.

"We're committed to supporting Labatt's long term success in Canada and are pleased that our heritage of quality brewing and innovation are being expanded," said Charles Oliver, Vice President of Supply Chain for Labatt in North America. "And we're especially proud to be able to make this investment here in our hometown of London."

The Hon. Chris Bentley, Ontario Minister of Labour and London Mayor Anne Marie DeCicco joined Labatt employees in celebrating the expansion announcement.

"The name Labatt has been synonymous with London since the brewery was first established here in 1847," said London Mayor Anne Marie DeCicco. "Throughout these many, many years, Labatt has continued to contribute to the community in countless ways, so it's most fitting for this exciting new era of Labatt investment to be launched against the backdrop of our City's 150th anniversary of incorporation."

Expansion work will begin in July and is scheduled to be completed by the end of this year with capacity coming on line at the beginning of 2006. The expansion will deliver a 45% increase in capacity through such additions as:

- Eight vertical uni-tanks, each with a capacity of more than one million bottles of beer (uni-tanks are a combination fermenting and ageing tank)
- State of the art keg line capable of producing 360 kegs per hour
- New brewhouse that can produce more than four million bottles of beer per day
- New yeast propagation facility
- New can packer to meet the increasing consumer demand for new types of can packages
- Three high speed automated palletizers for packaging lines

"This is an exciting day for us at Labatt," continued Oliver. "Our London brewery is already one the most cutting-edge breweries in the country. Today's investment reaffirms our continued commitment to quality - and to remaining the largest brewery in Canada."

Labatt's London brewery is home to The Innovation Centre, a state-of-the- art facility that is devoted exclusively to innovation in the beer industry and one of only four such centres in the world, which develop new products for InBev, the parent company of Labatt. Recent innovations from the centre include Shok, Labatt Blue Cold One and Labatt Genuine Honey.

Founded in London, Ontario in 1847 and the proud brewer of more than 60 quality beer brands, Labatt is Canada's largest brewery.

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