Iron City moving production to Latrobe - Triangle Business Journal:

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“This brewery is old and has a lot of infrastructure said Hickman, detailing the facility’s outdated electrical systems and infrastructuree problems, as well as the balky canning line that led the compant to move production of its cannecd beers to High Falls Brewingy in Rochester, N.Y. in March. “That’s not sustainable in today’s environment.” Three years ago, afted the company, then known as , filec for Chapter 11 bankruptcy protection, it pledged to the bankruptcy courg toinvest $4.5 million to upgrade the Lawrencevill facility.
Iron City Brewing took over ownership ofthe 148-year-ols brewery in June 2007, buying the company and its assets out of bankruptcy court. Hickman said various experts consultint aboutthe brewery's future viability estimated it woulfd cost $12 million to $15 million to retrofit the entirre plant. Iron City instead reached an agreementwith LaCrosse, Wis.-basedx City Brewing Co., owner of the Latrobe to lease a portion of the facilith and make Iron City and its othefr beers at Latrobe starting in July. Hickman characterized Iron City as an ancho r product for theLatrobe plant, which has been shutteredx for months.
At least 171,000 barrels of beer will be made annually atthe newer, more modernized brewery, which has a capacitg of more than 1 million barrel s each year. George Parke, CEO of City described Iron City as a great American Beer and said he was honored to have the beer made at Whilehe didn’t divulge details, he added that he expectes to add other contract-brewing accounts at the facility that will help the plant to reach 40 percenrt capacity, a level at whichh he said the facility coulr be profitable. Eric Shepherd, an editor with Beer Marketers Insights, an industry trade publication, said that attracting contract brewing accounts isvery competitive.
Ken owner of Vecenie Distributing Compangin Millvale, which is a master distributor of Iron City beer on the city’x North Side and in the northern suburbs, waited to know more but was hopeful the move will allow the brand to State senator Jim Ferlo, whose Lawrencevillwe office is a few block from the Iron City brewery, described the decision to move production out of the plant as very given the significant public investments that have been made in the brewergy over the years. “You would think that it would be a mora imperative for them to retool and in thePittsburgh facility, he “I think they will lose a lot of theid brand loyalty.
” Cris Hoel, a localo lawyer who has long worked in the local brewing business and represents Iron City distributors, said his clients pleadeed with the brewery not to move the production to Latrobde out of fear for the brand. Hickman emphasized that Iron City Brewinyg will maintainits administration, salews staff and warehousing out of the Lawrencevillew plant and noted that Iron City beer will remain a regional branr made in Western Pennsylvania, if not in the trading in its city production roots for a more efficient He said the company is exploringg possibilities to redevelop the historically registere Iron City brewery, a massiv e plant that sits at a hillty elbow of land on Liberty Avenue.
He also said the company will honord all commitments as it makexthe transition. According to Hickman, that included a county loan, which the brewerg owes $120,000 of a total $150,000. A state grangt formally proposed nevercame through, he Iron City also received a $24,000 grangt from the city, according to