Labatt invests in Canada breweries with increased production capabilities and packaging tech

By Rachel Arthur

- Last updated on GMT


Related tags Beer Brewing Canada Ab inbev

Labatt Breweries of Canada – a subsidiary of AB InBev - has announced investments in Ontario and Newfoundland and Labrador.

Firstly, an investment of $26.6m ($19.4m USD) at the London, Ontario brewery will expand production capability.

Labatt will direct $13.5m ($9.84m USD) to the addition of four new tanks for the brewery's fermenting cellar: increasing the capacity at the London brewhouse by 597K hectoliters per year (the equivalent to 4 new tanks).

Meanwhile, $13.09m will fund two new packaging lines in the brewhouse (this packaging tech uses a sustainable paperboard, enabling products to be packaged with significantly less glue compared to previous models, according to the brewery).

The lines also improve inspection capabilities in operations to ensure packaging is robust.

Labatt Breweries of Canada boasts a portfolio of more than 60 beers, ready-to-drink and non-alcoholic products: with a manufacturing network of six key breweries and four craft breweries across the country.  

"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," said Jeff Ryan, VP Legal & Corporate Affairs, Labatt Breweries of Canada.

"With this increased production capacity, Labatt can meet current Canadian consumer demand while also setting us up for future growth."

Alex Martel, Brewery Manager, London, Labatt Breweries of Canada, 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 optimize our brewery." 

Capital investments made from 2019-2023 in Ontario total nearly $80m ($58m USD), which Labatt says demonstrates its ongoing commitment to the province.

New packaging line in Newfoundland and Labrador

Meanwhile, Labatt has also announced the investment of $10.5m ($7.65m USD) into its St. John's brewery in Newfoundland and Labrador to fund the addition of a new packaging system to implement  paperboard packaging to replace plastic packaging rings used to hold together six-packs and eight-packs of beer.  

This switch to paperboard packaging is expected to remove 24,000 kilograms of plastic from landfill every year.

"This investment in Newfoundland and Labrador is a testament of Labatt's commitment to a sustainable future, our brewery, our employees and our community," said Wade Keller, Director of Corporate Affairs of Labatt's Atlantic Breweries.

"As we continue our journey towards the elimination of single use plastic in our operations, this investment in paperboard packaging in our operations is proof of that."  

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