Brick Brewing is targeting recurring savings in excess of $1Million per year
KITCHENER, ON, Sept. 23, 2014 /CNW/ - Brick Brewing Co. Limited ("Brick" or the "Company") (TSX:BRB) completed the previously announced sale of its Waterloo property on Monday, September 22. The buyer, HIP Developments, and Brick have agreed to terms of a lease which will have Brick remaining in the building in the short term.
Brick is also announcing today a major investment project to expand operations at Bingemans Centre Drive in Kitchener. The project will see Brick invest nine million dollars to establish full brewing capability in Kitchener, which will result in a fully integrated brewing, packaging and distribution facility upon completion. The build-out and commissioning of the project is expected to be complete by the end of October 2015.
"This is a major step in the growth of our company, and clear evidence of our commitment to the Kitchener Waterloo region and the province of Ontario, our most important market," said President and CEO of Brick, George Croft. "This investment will simplify our operation and enables a step-change in efficiency, productivity, quality and cost reduction for us. In order for Brick to remain competitive with the large brewers, this is a step we needed to take," added Croft.
"The equipment we will install in Kitchener is absolutely leading edge, the latest and best brewing technology available in the world," said Russell Tabata, Chief Operating Officer of Brick Brewing.
Greater Kitchener Waterloo Chamber of Commerce President & CEO Ian MacLean added, "This is great news, and a real indication of the strong business climate here in Kitchener Waterloo. Brick is an outstanding business not just in Kitchener Waterloo but throughout Ontario. To see a brewer like Brick making this investment, growing and adding jobs is wonderful."
Brick will be funding the project through a combination of sources, including four million dollars in sale proceeds, as well as nine hundred thousand dollars in leasehold improvements funded by the building's owner. Brick's incremental investment will be approximately four million dollars. Brick anticipates the project will result in significant improvements in operating efficiency and productivity. The Company is targeting recurring savings in excess of one million dollars per year, once the project is completed in 2015. While some portion of the cost savings may be re-invested in brand support, the bulk of the savings will flow through as increased EBITDA.
About Brick Brewing
Brick is Ontario's largest Canadian-owned and Canadian-based publicly held brewery. The Company is a regional brewer of award-winning premium quality and value beers and is officially certified under British Retail Consortium (BRC) Global Standards for Food Safety, one of the highest and most internationally recognized standards for safe food production. Founded in 1984, Brick Brewing Co. was the first craft brewery to start up in Ontario, and is credited with pioneering the present day craft brewing renaissance in Canada. Brick has complemented its Waterloo brand premium craft beers with other popular brands such as Laker, Red Baron, Red Cap and Formosa Springs Draft. In March 2011 Brick purchased the Canadian rights to the Seagram Coolers and now produces, sells, markets and distributes Seagram Coolers across Canada. Brick trades on the TSX under the symbol BRB. Visit us at www.brickbeer.com.
All statements in this press release that do not directly and exclusively relate to historical facts constitute forward-looking statements as of the date of this press release. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "anticipate", "seek", "plan", "believe" or "continue" or the negatives of these terms or variations of them or similar terminology. Although the Corporation believes that the expectations and assumptions reflected in these forward-looking statements are reasonable, notably the annual recurring savings projection, undue reliance should not be placed on these forward-looking statements, which are not guarantees and are subject to certain risks, uncertainties and assumptions, which may cause actual performance and financial results to differ materially from such forward-looking statements. The forward-looking statements included in this press release are made only at the date of this press release and, except as required by applicable securities laws, the Corporation does not undertake to publicly update such forward-looking statements to reflect new information, future events or otherwise.
Image with caption: "Brick Brewing Post Expansion (CNW Group/Brick Brewing Co. Limited)". Image available at: http://photos.newswire.ca/images/download/20140923_C9458_PHOTO_EN_42857.jpg
SOURCE: Brick Brewing Co. Limited
For further information:
Contact: George Croft, President & Chief Executive Officer, Brick Brewing Co. Limited, (519) 742-2732 x147