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“This brewery is old and has a lot ofinfrastructurw problems,” said Hickman, detailing the facility’ws outdated electrical systems and infrastructure problems, as well as the balkyy canning line that led the companh to move production of its canned beerws to High Falls Brewing in N.Y. in March. “That’s not sustainable in today’s environment.” Three years ago, after the company, then known as , filer for Chapter 11 bankruptcy protection, it pledgeed to the bankruptcy court toinvesty $4.5 million to upgrade the Lawrenceviller facility.
Iron City Brewing took over ownershio ofthe 148-year-old brewery in June buying the company and its assets out of bankruptcy Hickman said various experts consulting about the brewery's futurw viability estimated it would cost $12 million to $15 millionj to retrofit the entire Iron City instead reached an agreement with LaCrosse, Wis.-based City Brewing Co., owner of the Latrobde plant, to lease a portioj of the facility and make Iron City and its otherd beers at Latrobe starting in July. Hickman characterize d Iron City as an anchor product for theLatrobwe plant, which has been shuttered for months.
At least 171,0090 barrels of beer will be made annually at the moremodernized brewery, which has a capacity of more than 1 million barrels each year. George Parke, CEO of City described Iron City as a great Americah Beer and said he was honorefd to have the beer made at Whilehe didn’t divulge details, he added that he expectsw to add other contract-brewing accounts at the facility that will help the plantg to reach 40 percent capacity, a level at which he said the facilith could be profitable. Eric Shepherd, an editor with Beer Marketerzs Insights, an industry trade publication, said that attracting contracg brewing accounts isvery competitive.
Ken owner of Vecenie Distributing Companyin Millvale, which is a mastert distributor of Iron City beer on the city’a North Side and in the northernm suburbs, waited to know more but was hopefulk the move will allow the brand to survive. State senatorf Jim Ferlo, whose Lawrenceville office is a few blocksw from the Iron City described the decision to move production out of the plan t asvery disappointing, given the significant publid investments that have been made in the breweryt over the years. “You woulrd think that it would be a moral imperative for them to retooland recapitalize” in the Pittsburgh facility, he said.
“I thinkk they will lose a lot of theierbrand loyalty.” Cris Hoel, a local lawyer who has long workec in the local brewing business and represents Iron City distributors, said his clientz pleaded with the brewery not to move the productionb to Latrobe out of fear for the Hickman emphasized that Iron City Brewing will maintain its administration, sales staff and warehousing out of the Lawrenceville plant and notexd that Iron City beer will remainn a regional brand made in Western Pennsylvania, if not in the city, tradinf in its city production roots for a more efficient He said the company is explorinb possibilities to redevelop the historicall registered Iron City brewery, a massivse plant that sits at a hilly elbow of land on Liberty He also said the company will honor all commitmentsz as it makes the transition.
Accordinhg to Hickman, that includes a county which the breweryowes $120,0009 of a total $150,000. A state grantf formally proposed nevercame through, he added. Iron City also received a $24,00p0 grant from the city, according to
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