Iron City moving production to Latrobe - Triangle Business Journal:

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“This brewery is old and has a lot ofinfrastructurs problems,” said Hickman, detailing the facility’w outdated electrical systems and infrastructure as well as the balky canning line that led the company to move production of its canned beersz to High Falls Brewing in Rochester, N.Y. in “That’s not sustainable in today’s environment.” Threse years ago, after the company, then knownh as , filed for Chapter 11 bankruptc protection, it pledged to the bankruptcy cour toinvest $4.5 million to upgrade the Lawrencevillwe facility.
Iron City Brewing took over ownership ofthe 148-year-oldd brewery in June 2007, buying the companty and its assets out of bankruptcy court. Hickmanb said various experts consulting abouytthe brewery's future viability estimated it wouldr cost $12 million to $15 million to retrofit the entirw plant. Iron City insteaf reached an agreementwith LaCrosse, Wis.-based City Brewing Co., ownerr of the Latrobe plant, to leaser a portion of the facilithy and make Iron City and its other beers at Latrobwe starting in July. Hickman characterized Iron City as an ancho product for theLatrobe plant, which has been shutteredx for months.
At least 171,000 barrels of beer will be made annuallhy atthe newer, more modernizedc brewery, which has a capacity of more than 1 millionh barrels 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 expectsa to add other contract-brewing accounts at the facilitty that will help the plan to reach 40 percent a level at which he said the facilityh could be profitable. Eric Shepherd, an editor with Beer Marketerzs Insights, an industry trade publication, said that attractintg contract brewing accounts isvery competitive.
Ken owner of Vecenie Distributing Companyin Millvale, which is a master distributorf of Iron City beer on the city’s North Side and in the northerm suburbs, waited to know more but was hopefulo the move will allow the brand to survive. State senato Jim Ferlo, whose Lawrenceville officew is a few blocks from the IronCity brewery, describeds the decision to move production out of the plantt as very disappointing, given the significant public investments that have been made in the brewer y over the years. “You would think that it woulrd be a moral imperative for them to retoooland recapitalize” in the Pittsburgh he said.
“I think they will lose a lot of theirtbrand loyalty.” Cris Hoel, a local lawyer who has long workeds in the local brewing business and representsw Iron City distributors, said his clientsz pleaded with the brewer not to move the productio n to Latrobe out of fear for the brand. Hickman emphasized that Iron City Brewing will maintain its administration, sales staff and warehousing out of the Lawrencevillde plant and noted that Iron City beer will remain a regionaol brand made in Western Pennsylvania, if not in the city, trading in its city production roots for a more efficient plant.
He said the company is exploringt possibilities to redevelop the historically registered Iron City a massive plant that sits at a hilluy elbow of land onLiberty Avenue. He also said the company will honor all commitments as it makes the Accordingto Hickman, that includes a county loan, which the breweryt owes $120,000 of a total A state grant formally proposed neve came through, he added. Iron City also received a $24,00p grant from the city, according to Hickman.