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Brick Brewing Co.


[Image: Brick+Brewery+Logo.bmp]
Brick to sell landmark brewery in Waterloo
Apr 18, 2014 | Terry Pender | Waterloo Region Record | Link
Quote:KITCHENER — Brick Brewing plans to sell its iconic building and property on King Street South in Waterloo and expand its operations in Kitchener.

The beer maker disclosed the plans in a news release on Thursday in which it reported its year-end financial results.

It said it will use the proceeds of the sale, and debt, to invest in its facilities on Bingemans Centre Drive in Kitchener, including the addition of a brew house.

The building at 181 King St. S., is the public face of Brick, which became Ontario's first craft brewery when it opened in 1984. It contains a brew house, offices, hospitality room and retail store.

The pending sale of the property was described as a win for the company and a win for Waterloo Region's plan to see redevelopment along the light-rail-transit line.

"We will have a chance to invest and expand in the Kitchener location," Sean Byrne, Brick's chief financial officer, said in an interview.

The Kitchener facility, built in 1995, currently houses a bottling plant, as well as a warehouse and distribution centre.

A brew house and offices will be built next to the existing facility, said the company.

"We have extended our lease agreement in our Kitchener facility through 2025, with an opportunity to extend beyond that," said George Croft, Brick's chief executive officer. "We are really, really committed to the region."

The new brew house in Kitchener will be larger and more modern than the aging brewing operation in Waterloo, "which will improve our operating efficiencies and improve our electrical utilization," Croft said.

Byrne said the sale of the Waterloo property also is good for the region because it provides an opportunity for "redevelopment in a growing and active part of the city."

The redevelopment "should fit in nicely with the coming LRT and the other activity along King Street," he said.

The area near Brick's Waterloo building has seen a lot of redevelopment in recent years, including the Bauer Buildings, Red Condominium and the 144 Park condo project.

Brick said there is no firm and definitive deal for the property at this time. "We do say that we are in a position where we anticipate a transaction will be completed within the current fiscal year," he said.

The sale of the Waterloo property will not impact the company's brewing operations in Formosa, Ont., where it makes Seagram Black Cherry, Red Grapefruit, Classic Lemonade and Ice Tea coolers.

Brick reported that it earned net income of $525,199 on net sales of $37.7 million in the year ended Jan. 31. That compares to net income of $351,033 on net sales of $35.3 million a year earlier.

The company said earnings before interest, taxes, depreciation and amortization (EBITDA) were a record $4.6 million.

Brick attributed the strong results to its continued focus on cost reductions and growth in its premium brands.

It said its Waterloo Brewing brands recorded volume growth of 35.3 per cent while its Seagram coolers had volume growth of 4.8 per cent. Laker volumes rose 4.5 per cent..

"We are very happy with the year," Croft said.

"We are feeling like we are making good progress and we are thrilled that we are growing our premium brands, both Waterloo and Seagram, in a very significant way," he said.
Brick Brewery buyer has big plans for building
August, 20, 2014 | James Jackson | Waterloo Chronicle | Link
Quote:The iconic Brick Brewery building on King Street South in Waterloo will soon have a new owner as the brewing company that’s called the edifice home for 30 years has found a buyer.

HIP Developments has agreed to purchase the nearly 115-year-old building at 181 King St. S. in a $4 million deal expected to close by Oct. 26. The company is looking to convert the ground floor of the building into a restaurant or pub, turn the upper floors into office space, then build a 20- to 25-storey condo or apartment tower above that.
Brick has been brewing beer at the location since 1984 and announced in the spring it was looking to sell.

“After 30 years it’ll be tough to leave,” said George Croft, president and CEO of Brick Brewing, in an interview last week. “Uptown has really changed. It’s a thriving, busy piece of property.”

The beer company plans to use the cash to expand its Kitchener operation on Bingemans Centre Drive and consolidate all operations, including brewing, at that location. The Kitchener facility is about four times the size of the Waterloo location.

The continued development of the uptown core along King Street, and the arrival of light rail transit by 2017, was another factor in their decision to relocate.

“For us, the landscape has changed and it’s not a great spot for an industrial facility,” said Croft.

Scott Higgins, vice president of HIP Developments, said the location of the site and its proximity to LRT appealed to them, as well as some of the historic architectural elements, such as the yellow masonry.

“We want to build a true mixed-use development and to be a showcase of how retail and office space can work together well,” Higgins said. Other recent projects by HIP Developments include the Sportsworld Crossing plaza in Kitchener and the Northfield Office Campus in Waterloo.

Built in 1899, the building was originally part of the Hoffman, Wegenast & Co. furniture company, which was located at the corner of King Street South and Allen Street West and where Waterloo’s Adult Recreation Centre is now located.

Now a brewery, it housed the upholstery workers and the business office at the time.

Michelle Lee, the city’s heritage planner, said the property is listed on the City’s Municipal Heritage Register as a non-designated property of cultural heritage value or interest.

Unlike designated properties, owners of non-designated properties do not require council approval to make alterations to the property.

The Ontario Heritage Act does, however, provide municipalities with 60 days to process demolition applications for listed, non-designated properties. Municipalities typically have 10 days to process a demolition application for a residential property and up to 20 days for commercial properties.

“This gives council time to evaluate whether the property merits protection, and if deemed appropriate, to initiate the process of designation under the Ontario Heritage Act,” said Lee.

As part of the sale agreement, Brick Brewery will lease back the building for up to two years to give the company time to transition production to the Kitchener site.

“This will ensure no shortage of stock for customers and no issue at all with supply,” said Croft, who said the company remains committed to Waterloo Region and Ontario.
Brick’s Q2 sales fall, but earnings rise

Waterloo Region Record
By Record staff

Quote:WATERLOO — Brick Brewing improved its second-quarter earnings despite an 8.4 per cent decline in sales. 

The Waterloo-based beer maker said Thursday that it had earnings before interest, taxes, depreciation and amortization (EBITDA) of $1.6 million in the three months ended July 27, up from $400,000 in the second quarter a year ago.

It earned net income of $445,453 in the second quarter. It lost $458,226 in the same period a year ago.

Net revenue slipped to $10.4 million from $11.4 million a year ago as cooler weather affected sales. The company also noted that in the second quarter a year ago it ran a promotion for its new Laker 12-pack.

Brick said its profit margins improved due to lower operating costs, the absence of the Laker 12-pack promotional costs it incurred a year earlier and increased sales of premium products.

It noted that volume for its premium beers – including Waterloo Pilsener, Waterloo IPA, Waterloo Dark, Waterloo Amber and Waterloo Radler – increased 39 per cent compared to the second quarter a year ago.

It said volumes for its Seagram coolers was down due to reduced listings at the LCBO and the absence of a of cider mix pack compared to a year ago.
Good to see volumes of their premium beers are on the rise. Always a sucker for a Waterloo Dark
Spokes Wrote:Good to see volumes of their premium beers are on the rise. Always a sucker for a Waterloo Dark

The Amber is my favourite. That said, I've been disappointed in their seasonals. The only one I really enjoyed was the Porter last winter.
From today's Record:

Brick completes sale of Waterloo property

http://www.therecord.com/news-story/487 ... -property/
Given the parlous state of Ontario's public finances, I'm not sure I approve of government grants for private sector projects that would take place without the assistance, but glad that Brick's project will create 10 new jobs.

Brick Brewing gets provincial grant for expansion project

Waterloo Region Record
By Record staff

KITCHENER — Brick Brewing is getting $357,959 from the Ontario government to help pay for the expansion of its Kitchener plant.

The funding was announced Wednesday in a news release from the Ministry of Economic Development, Employment and Infrastructure.

Brick is undertaking a $9-million project to add a brew house at its bottling, packaging and distribution facility on Bingemans Centre Drive.  ...

http://www.therecord.com/news-story/5199...n-project/
Beer tanks on King St. being removed yesterday and today. Looks like they will soon vacate this property. Any word as to what is going to replace their current building?

I keep hoping for a building within a building plan, with a high raise enclosing the current structure, which would make for a great restaurant and cafe.
I'm hoping for the same thing. I think demolition might be starting soon I saw fencing ready to go up on the Caroline St. Side of the property.
Is Brick relocating there retail store, or will they be closing it when they move to The Kitchener plant?
I think they'll have to move their store.
I thought I heard there's going to be a retail store at the new facility, but just checked the articles and no mention of that.
So are they going to change the beers name to 'Kitchener Dark'?
I believe the guidelines require that the beer be produced on the same premises as the brewery itself. The only place to get Brick beer in Waterloo will be from the LCBO or Beer Store.
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