DENVER & MONTREAL--(BUSINESS WIRE)--
Molson Coors Beverage Company (NYSE: TAP; TSX: TPX) today announced
plans to cease production at its Irwindale, Calif., brewery by September
2020.
Additionally, Molson Coors has entered into an agreement with Pabst
Brewing Co. which gives them an option to purchase the Irwindale
facility.
“This move will allow us to optimize our brewery footprint while
streamlining our operations for greater efficiency across the network,”
said Chief Integrated Supply Chain Officer Brian Erhardt. “While it was
a very difficult decision, we have extra capacity in our system and
Irwindale’s production can be absorbed by other breweries in our
network.”
Today’s announcement comes on the heels of a plan recently announced by
Molson Coors to revitalize and restructure the business to get back on
track. While ceasing production at the Irwindale facility is not part of
the larger revitalization plan announced in October 2019, it does not
impact previously announced cost savings guidance.
The Irwindale brewery, which opened in 1980, employs approximately 470
people and produced 4.8 million barrels, shipped to 261
independently-owned distributors in 2019. Brands produced include but
are not limited to: Miller Lite, Coors Light, Miller High Life, MGD,
Steel Reserve, Miller 64 and several brands for Pabst. Over the next
nine months, products currently produced in Irwindale will be
transitioned to other breweries, primarily Golden, Colo., and Fort
Worth, Texas.
FORWARD-LOOKING STATEMENTS:
This press release includes “forward-looking statements” within the
meaning of the U.S. federal securities laws. Generally, the words
“believe,” “expect,” “intend,” “anticipate,” “project,” “will,”
“outlook,” and similar expressions identify forward-looking statements,
which generally are not historic in nature. Statements that refer to
projections of our future financial performance, our anticipated growth
and trends in our businesses, and other characterizations of future
events or circumstances are forward-looking statements. Although the
Company believes that the assumptions upon which its forward-looking
statements are based are reasonable, it can give no assurance that these
assumptions will prove to be correct. Important factors that could cause
actual results to differ materially from the Company’s historical
experience, and present projections and expectations are disclosed in
the Company’s filings with the Securities and Exchange Commission
(“SEC”). These factors include, among others, the impact of increased
competition resulting from further consolidation of brewers, competitive
pricing and product pressures; health of the beer industry and our
brands in our markets; ability to dispose of the Irwindale Brewery;
economic conditions in our markets; impairment charges; our ability to
maintain manufacturer/distribution agreements; changes in our supply
chain system; availability or increase in the cost of packaging
materials; success of our joint ventures; risks relating to operations
in developing and emerging markets; changes in legal and regulatory
requirements, including the regulation of distribution systems;
fluctuations in foreign currency exchange rates; increase in the cost of
commodities used in the business; the impact of climate change and the
availability and quality of water; loss or closure of a major brewery or
other key facility; our ability to implement our strategic initiatives,
including executing and realizing cost savings; our ability to
successfully integrate newly acquired businesses; pension plan and other
post-retirement benefit costs; failure to comply with debt covenants or
deterioration in our credit rating; our ability to maintain good labor
relations; our ability to maintain brand image, reputation and product
quality; and other risks discussed in our filings with the SEC,
including our most recent Annual Report on Form 10-K and our Quarterly
Reports on Form 10-Q. All forward-looking statements in this press
release are expressly qualified by such cautionary statements and by
reference to the underlying assumptions. You should not place undue
reliance on forward-looking statements, which speak only as of the date
they are made. We do not undertake to update forward-looking statements,
whether as a result of new information, future events or otherwise.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20200106005910/en/
News Media
Marty Maloney, (312)
496-5669
Investor Relations
Greg
Tierney, (312) 496-5853
Source: Molson Coors