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Big Rock Announces Acquisition of Packaging Equipment and Operational Re-alignment

Big Rock Brewery logo (CNW Group/Big Rock Brewery Inc.)

News provided by

Big Rock Brewery Inc.

Jul 10, 2024, 17:00 ET

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CALGARY, AB, July 10, 2024 /CNW/ - Big Rock Brewery Inc. (TSX: BR) ("Big Rock" or the "Corporation") Inc is excited to announce it has acquired a QuikFlex™ 2100G3 (the "QuikFlex") manufactured by Graphic Packaging International, one of the world's leading providers of integrated solutions for packaging, materials, printing, and automation. 

The QuikFlex represents the latest technology in a flexible, high-speed, continuous-motion packer designed to package single tiers of cans in various configurations and features automatic loading. The QuikFlex will be integrated with the Corporation's high-speed canning line that was upgraded during 2022.

David Kinder, Big Rock's President and Chief Executive Officer noted "The acquisition of this equipment was critical to allow Big Rock to meet the tastes and preferences of our loyal customer base and demonstrates our commitment to re-invest in the company. This addition will also allow us to package products in formats that align with the needs of our co-packing partners and will reduce product movements and reliance on third party packers, making us more competitive."

  • The Corporation also announced some recent operational realignments: At the conclusion of its lease on July 31, 2024, Big Rock's location in Vancouver will be permanently closed. Prior to the pandemic, this location, which was opened in 2015, featured a tap room, restaurant and micro-brewery. The tap room and restaurant were ultimately not re-opened and the leased space was larger than what is required to maintain production; and
  • Effective June 17, 2024 Big Rock sold and closed its warehouse facility located in Edmonton, Alberta. Big Rock products will continue to be distributed to each of its customers via a partnership with Hy-Line Express Ltd, an Edmonton-based trucking company who will provide cross-docking functionality to Big Rock's existing network of transportation partners.

Mr. Kinder commented: "Upon joining Big Rock I worked with our team to review the results of the Strategic Review conducted in 2023. It became evident that these changes were necessary to allow us to focus on our core business. We are cognizant of our long-standing commitment from our customers in British Columbia and in Central and Northern Alberta and look forward to continuing to meet their needs. Our brewing/production operations in BC will be relocated and we will continue to brew high-quality beverages, including Rock Creek Ciders, White Peaks teas and Tree Brewing Co. beers, that our customers have come to expect and appreciate. In Edmonton we saw the opportunity to streamline our operating costs and consolidate both our inventory and logistics staging operations with our Calgary location. Our customers will continue to be able to order directly, have product readily available and be serviced on a seamless basis with our existing network of last-kilometer logistic partners who will continue to deliver our product directly."

Forward-Looking Information

Certain statements contained in this press release constitute forward-looking statements. These statements relate to future events or Big Rock's future performance. All statements, other than statements of historical fact, may be forward-looking statements. Forward-looking information are not facts, but only predictions and generally can be identified by the use of statements that include words or phrases such as, "anticipate", "believe", "continue", "could", "estimate", "expect", "intend", "likely", "may", "project", "predict", "propose", "potential", "might", "plan", "seek", "should", "targeting", "will", and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Big Rock believes that the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon by readers, as actual results may vary materially from such forward-looking statements. These statements speak only as of the date of this press release and are expressly qualified, in their entirety, by this cautionary statement.

In particular, this press release contains forward-looking statements pertaining to the following:

  • Big Rock's expectation that the QuikFlex will allow Big Rock to meet the changing tastes and preferences of its customer base;
  • Big Rock's expectation that the addition of the QuikFlex will allow Big Rock to package products in formats that align with the needs of co-packing partners;
  • Big Rock's expectation that the addition of the QuikFlex will reduce product movements and reliance on third party packers, making the Corporation more competitive;
  • the anticipated date and timeline of Big Rock's location in Vancouver permanent closure;
  • Big Rock's expectation that its products will continue to be distributed to each of its customers via a partnership with Hy-Line Express Ltd.;
  • Big Rock's expectation that Hy-Line Express Ltd. will provide cross-docking functionality to Big Rock's existing network of transportation partners;
  • Big Rock's expectation that implementation of the operational realignment will allow Big Rock to continue to meet the needs of its customers in British Columbia, Northern and Central Alberta;
  • the expectations that Big Rock's operational realignment will result in the streamlining of operating costs and consolidate the Corporation's inventory and logistics staging operations with its Calgary location; and
  • the expectations that customers will continue to be able to order, have product readily available and be serviced on a seamless basis with Big Rock's existing network of last-kilometer logistic partners who will continue to deliver our product directly.

With respect to the forward-looking statements listed above and contained in this press release, management has made assumptions regarding, among other things:

  • there will be no material change to the regulatory environment in which Big Rock operates;
  • there will be no material supply issues with Big Rock's vendors;
  • that Big Rock will receive and successfully complete the installation of the QuikFlex;
  • that Big Rock can and will successfully integrate and operate the QuikFlex; and
  • that Big Rock can and will execute its operational realignments and strategies.

Some of the risks which could affect future results and could cause results to differ materially from those expressed in the forward-looking information and statements contained herein include the risk factors set out in the Corporation's annual information form for the year ended December 30, 2023 and in the Corporation's most recent Management Discussion and Analysis which are available on SEDAR+ at www.sedarplus.ca and also include, but are not limited to:

  • the inability to integrate the QuikFlex with the Corporation's high-speed canning line as expected;
  • the risk that the addition of the QuikFlex may not allow Big Rock to package products in formats that align with the needs of co-packing partners as expected;
  • the risk that the implementation of the operational realignment may not allow Big Rock to continue to meet the needs of its customers in British Columbia, Northern and Central Alberta as expected;
  • the inability to complete the anticipated relocation of Big Rock's brewing operations in British Columbia and continue to brew high-quality beverages as expected;
  • the risk that Big Rock's operational realignment may not result in the streamlining of operating costs and consolidate the Corporation's inventory and logistics staging operations with its Calgary location as expected; and
  • the risk that customers may not be able to order, have product readily-available and be serviced on a seamless basis with Big Rock's existing network of last-kilometer logistic partners as expected.

Readers are cautioned that the foregoing list of assumptions and risk factors is not exhaustive. The forward-looking information and statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking information and statements included in this press release are made as of the date hereof and Big Rock does not undertake any obligation to publicly update such forward-looking information and statements to reflect new information, subsequent events or otherwise unless so required by applicable securities laws.

About Big Rock Brewery Inc.

In 1985, Ed McNally founded Big Rock to contest the time's beer trends. Three bold, European-inspired offerings – Bitter, Porter and Traditional Ale – forged an industry at a time heavy on easy drinking lagers and light on flavour. Today, our extensive portfolio of signature beers, ongoing seasonal offerings, six ciders (Rock Creek Cider® series) and custom-crafted private label products and other notable, licensed alcoholic beverages keeps us at the forefront of the craft beer revolution and still proudly contesting the beer and alcoholic beverage trends of today. With brewing operations in Calgary, Alberta, Vancouver, British Columbia, and Toronto, Ontario. Big Rock trades on the TSX under the symbol "BR". For more information on Big Rock Brewery visit www.bigrockbeer.com

SOURCE Big Rock Brewery Inc.

For further information, please contact: David Kinder, President & Chief Executive Officer, or Michael Holditch, Interim Chief Financial Officer: Phone : (403) 720-3239, Fax : (403) 720-3641, Email : [email protected]

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Big Rock Brewery Inc.

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