Ontario-based Brick Brewing Co has announced it will sell its Formosa facility for CAD 2.4 million ($1.9 million).
The deal represents the last step in the company’s supply chain consolidation project that will allow it to save around $484,000 a year.
The beer maker now has only one operating brewery, having sold its Waterloo site in 2014. It is expected that the sale of the Formosa facility will close in the current quarter.
Brick is working closely with the buying group to ensure a seamless transition and start up. The sale includes land, building, equipment as well as both the Red Baron and Formosa Springs brands.
Leader for the buying group Zhang Haoliang said: “The opportunity to acquire an operation with the history of Formosa was simply too attractive to pass up. The Formosa plant has a brewing history that dates back to 1870, and we look forward to growing the business to be a meaningful player in the exciting Ontario craft beer category and beyond.”
Brick CEO George Croft added: “This is a tremendous outcome for all stakeholders. For Brick and our shareholders, we’re able to deploy sale proceeds towards our single source Kitchener facility. The buyer intends to continue to operate the brewery in Formosa, investing for the future and providing ongoing employment for the local community which is very good news.
“In 2014 we completed the sale of our Waterloo facility, which took the company from three operating facilities to two. With the sale of Formosa, we now realise the optimum long-term operating model of a highly efficient, single-source facility. This positions us well to both serve our customers and to compete effectively in the future.”
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