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Canadian brewer Labatt invests CAD 26.6m in brewery expansion

Labatt Breweries of Canada – part of AB InBev – has announced plans to expand its production capability by investing CAD 26.6 million (approx. $19.4 million) into its brewery in London, Ontario. The funding will enable the addition of a new four-tank fermenting cellar and two new packers. It is part of Labatt’s commitment to invest in sustainable solutions, evolve consumer demand and prepare its facilities for future growth. To enable Labatt to meet growing consumer demand, CAD 13.5 million (approx. $9.8 million) of the investment will fund the addition of four new tanks for the brewery's fermenting cellar, increasing the capacity at the London brewhouse by 597,000 hectolitres per year. CAD 13.09 million (approx. $9.5 million) will fund two new packaging lines in the brewhouse, expanding the brewery's operational capabilities. This packaging technology uses sustainable paperboard, which enables products to be packaged with “significantly less” glue compared to previous models. The lines also improve inspection capabilities in operations to ensure packaging is robust and meets the demands of Canadian consumers. Jeff Ryan, VP of legal and corporate affairs at Labatt, said: "Our London brewery is the largest in Labatt's network, brewing over 40% of the beer we brew for Canadians, and this significant investment boosts the facility's production capacity and sustainability performance. With this increased production capacity, Labatt can meet current Canadian consumer demand while also setting us up for future growth." Alex Martel, brewery manager at Labatt’s London facility, added: "The new packaging line at our London brewery will improve the way we package our products from both an environmental and quality assurance standpoint. We are constantly doing what's needed to ensure the brewery is prepared for future growth through production and environmental efficiencies, and this injection of capital will go a long way to optimise our brewery." The London facility manufactures beverages under various brands, including household names such as Guinness, Bud Light, Budweiser, Stella Artois and Corona. The latest funding builds on the brewery's CAD 52.6 million (approx. $38.3 million) investment in line upgrades, enhancements and sustainable innovations in 2021.

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