Brick Brewing Launches $4M Kitchener Expansion & Supply Chain Consolidation

05 January 2017

imageFrom Brick Brewing:

KITCHENER, Ontario, Canada - Brick Brewing Co. Limited today announced the next phase of expansion for the Kitchener brewery. Brick will be spending four million dollars to enhance production capabilities in Kitchener, including improvements to blending, packaging and warehousing. Upon completion of the project, Brick will cease operations in Formosa.

This move by Brick represents the final step in consolidating operations to a single site to improve manufacturing efficiency and competitiveness. Brick will be in position to perform all activities that are currently split between Formosa and Kitchener in the upgraded Kitchener location. Coincident with the initiation of the expansion, Brick will be marketing the Formosa site for sale. Deloitte Corporate Finance Inc. is advising Brick regarding the Formosa sale. Parties interested in acquiring the Formosa site and associated brands should visit for more information.

George Croft, President & Chief Executive Officer, commented, "We are hopeful that a buyer will emerge for Formosa in the months ahead. Given that the Formosa site began producing beer in 1870, it would be wonderful to see a new owner continue that rich history of brewing. To our employees in Formosa, we are deeply appreciative of your hard work and dedicated commitment over the years and we will do all we can to minimize any negative impacts on employees in the months ahead."

Brick anticipates completion of the Kitchener expansion by July 2017, and to exit from Formosa no later than September 2017. Brick has been successful in securing $1.75 million in funding from a key co-pack customer along with an extension to the current production contract until December 31, 2022. Other contractual terms remain unchanged. On completion, Brick expects to realize annual recurring savings of at least $0.6 million per year. Proceeds from the Formosa sale will also be utilized to fund the expansion project.

Croft added, "It is clear that a single site with full capabilities is the ideal end state solution to enhance both our competitiveness and our ability to serve our customers."

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