Labatt To Give Up Toronto Operations

    March 31, 2005

Labatt Breweries of Canada will be closing its Toronto brewery on November 4, 2005.

“This decision was a difficult one to take and follows considerable debate and analysis,” said Carlos Brito, President of Labatt Breweries of Canada. “After an extensive review of our brewery network, the Canadian management team has decided to cease major brewing operations in Toronto on November 4, 2005 with the brewery site formally closing by the end of the year.”

About 265 employees will be affected by the closure and will be provided fair and equitable severance packages as well as support services.

“We have provided our employees with as much advance notice as possible to allow them to plan for their futures,” said Brito.

Labatt’s decision to close the Toronto brewery is based on its excess capacity, particularly in central Canada, and the competitive disadvantage which this creates.

As a result of the Toronto brewery closure, new investments will be made and jobs will be created at Labatt’s London, Ont. brewery.

“We will be taking steps to ensure that Toronto brewery production is transitioned to the rest of our brewery network before the closure takes place,” said Charles Oliver, Labatt’s Vice President, Supply Chain. “And we plan to work consultatively with Toronto City Council to ensure the de-commissioning and re-development of the brewery lands is done in the best interests of the community.”

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