Labatt expands production capacity of London brewery with $26.6 million investment

A week after four large beer tanks made the journey from Sarnia to London, on Tuesday Labatt announced a $26.6 million investment in the London brewery.

According to a press release, Labatt Breweries of Canada is expanding production capacity of its London brewery by investing $26.6 million to fund the addition of a new four-tank fermenting cellar and two new packers.

According to the company, this investment is part of Labatt’s “ongoing commitment to invest in sustainable solutions, evolve consumer demand and prepare its breweries for future growth.”

The company added that Tuesday’s announcement will build on the brewery’s $52.6 million investment in line upgrades, enhancements and sustainable innovations in 2021.

$13.5 million of the investment will go towards funding the four new tanks for the brewery’s fermentation cellar, which will increase the capacity of the London facility by 597,000 hectoliters per year—equivalent to 4 new tanks.

IN PHOTOS: Beer tanks make their way to London

“Our London brewery is the largest in Labatt’s network, brewing over 40 per cent of the beer we brew for Canadians, and this significant investment boosts the facility’s production capacity and sustainability performance,” said Jeff Ryan, VP legal and corporate affairs, Labatt Breweries of Canada.

In addition, $13.09 million will fund two new packaging lines in the brew house, in which the packaging is done with sustainable paperboard, which allows products to be packaged with less glue than previous models.

"The new packaging line at our London brewery will improve the way we package our products from both an environmental and quality assurance standpoint," said Alex Martel, brewery manager, London, Labatt Breweries of Canada.

Between 2019 and 2023, the company said capital investments of nearly $80 million have been made in Ontario, therefore demonstrating the company’s commitment to the province.

“With this increased production capacity, Labatt can meet current Canadian consumer demand while also setting us up for future growth,” added Ryan.