LA CROSSE, Wis. (WXOW) - Good news for La Crosse's City Brewery.
An industry newsletter says that Pabst is going to "move most of our volume" to City Brewing facilities over the next five years.
Beer Marketers Insights reported late Monday morning that Pabst and City Brewing announced the long term deal.
In a statement to the newsletter, Pabst chairman and CEO Eugene Kashper said the deal runs until 2040.
"We are thrilled to establish this long-term partnership with City Brewing. We have great respect for George Parke and his family, and also for the management team's operational excellence, and the entire organization's commitment to quality," said Eugene Kashper, Chairman and CEO of Pabst, in a statement released Monday.
Most of Pabst's output is currently produced by MillerCoors. The agreement calls for production to move to City Brewing facilities by December 2024.
Reports that Pabst was buying a majority of City Brewing were untrue. "We're not buying City Brewing, nor planning to buy City," Kashper said to Beer Marketers Insights. "Pabst wants to remain a virtual brewer."
A news release from Pabst quotes George Parke, Charman and CEO of City Brewing. "This long-term commitment accelerates our ability to move forward with an investment program to expand our facilities and enhance our capabilities--which will provide a huge benefit to all of our customers. We look forward to brewing PBR and some of the other great brands in Pabst's portfolio that are beloved locally and nationally.
Besides its flagship Pabst Blue Ribbon, the company also owns a number of other brands including Old Style, Lone Star, and Stroh's. Those brands were once owned by the former G. Heileman Brewery based in La Crosse.
City Brewing, according to the newsletter, is the nation's leading contract brewer. Besides the facility in La Crosse, City Brewing has plants in Memphis and Latrobe, Pennsylvania.
City's website says it could package 50 million cases in La Crosse, along with brewing 7 million barrels. They could package 20 million cases in Latrobe and 60 million in Memphis.
"This partnership provides clarity and certainty for our employees and customers, and will allow us to innovate more effectively," said Kashper. "This is the beginning of a new, exciting chapter in our history."