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Wisconsin firm buys Rolling Rock plant
Friday, September 29, 2006

The new owner of the idled Latrobe Brewing plant hopes to begin production by mid-February, but full production will be delayed until local officials can make improvements to Latrobe's waste water treatment plant.

City Brewing of LaCrosse, Wis ., completed its purchase of the plant from InBev USA yesterday. Terms were not disclosed.

InBev put the plant up for sale in May after agreeing to sell the Rolling Rock brands to industry leader Anheuser-Busch for $82 million. Anheuser-Busch transferred Rolling Rock production to its Newark, N.J., brewery.

Kenneth Yartz, City Brewing's chief operating officer, said Latrobe's plant is not equipped to process the additional waste associated with producing flavored malt beverages, energy drinks and other beverages City Brewing plans to produce there.

"The city has to be able to handle the waste effectively in order for us to be able to grow," he said.

Mr. Yartz estimated it could take a year or two to complete the improvements. A price tag for the project is being developed and city, county and state officials are discussing ways to assist financing the work, he said. "We're going to get it done," Mr. Yartz said.

City Brewing has negotiated a two-year labor agreement with the union representing workers at the plant who lost their jobs when Rolling Rock production was halted at the end of July. Since then, workers have been collecting unemployment benefits and waiting for City Brewing to take over.

"We're optimistic everybody is going to come back," said George Sharkey, business agent for the IUE, the industrial division of the Communications Workers of America. He said City Brewing will meet with workers next week to review its plans.

Mr. Yartz expects the plant eventually will employ about 250, about the same number who worked there when Anheuser Busch announced it was shifting production elsewhere.

City Brewing currently operates out of a former G. Heileman Brewing Co. plant it purchased from Stroh's in 2000. Besides its own line of beers, the company makes beer for other brewers, Smirnoff Ice, Mike's Hard Lemonade, Arizona Teas and other beverages under contract.

Mr. Yartz said it will pursue a similar strategy in Latrobe.

First published on September 29, 2006 at 12:00 am
Len Boselovic can be reached at lboselovic@post-gazette.com or 412-263-1941.