Kitchener, Ontario –Β Brick Brewing Co. Limited (“Brick” or the “Company”) (TSX: BRB), Ontario’s largest Canadian-owned brewery, today announced the renewal and expansion of a major contract manufacturing agreement.
Russell Tabata, Brick’s Chief Operating Officer noted, “When we launched our 2015 expansion in Kitchener, a key objective was to enable growth in our contract manufacturing business. We felt that offering customers a single, integrated facility, supported by leading edge manufacturing technology would allow us to expand with both current and new customers. The agreement we’re announcing today is evidence of that. This contract includes a five year term with a significant minimum annual volume commitment and associated capital investment. Beyond the first renewal year, we anticipate volume under this agreement to represent more than ten percent of our total annual volume.”
“We couldn’t be more pleased,” added George Croft, President and Chief Executive Officer at Brick. “Our new brewhouse is achieving exactly what we had planned when we decided to make that investment. We’re now in a much better position for our owner brands to compete with the large international brewers. At the same time, we’re better able to attract new co-pack business and expand our relationships with existing customers. Our capabilities, whether in beer, coolers, or cider, give us diversity and flexibility in our business model. When we can grow our co-pack business we’re able to generate incremental returns for our shareholders and to strengthen the overall company.”
Confidentiality terms under the agreement require that Brick not disclose the name of the co-packaging customer.