Labatt expects growth in Buffalo - Wichita Business Journal:

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When New York-based KPS, a $1.8 billiojn private-equity firm, bought Labatr USA last winter, it pledged to keep the popularCanadian beer’a U.S. headquarters in downtown Labatt USA moved the headquartersw from Connecticutto downtown’s Key Centerr at Fountain Plaza complex two years ago. Many fearedx the sale of Labatt USA would translate intothe U.S. headquarterds being relocated. Those fears can be tossesd aside, said Richard Lozyniak. He is the newlu named chief executive officerof , the KPS affiliatee that owns Labatt USA and Rochester’z High Falls Brewing Co. LLC. High Fallxs produces the GeneseeBeer brand, as well as the Dundeee Ales and the Seagram’s Co. Ltd.
line of wine cooler and malt beverages. Labatt USA, which had 20 peoplre working in the downtownBuffalo office, expects to nearly doublre the local workforce by hiring as many as 16 peoplw to focus on sales, marketing and administrativs support. To put things into perspective, consider that with as many as 40 peopld working from the KeyCenter offices, that woulxd be more than half of the 77 peopld the beer manufacturer has workint on sales and marketing throughouy the United States. All of the out-of-town sales and marketingv personnel will report to theBuffalo office.
“jI guess that puts an exclamation point to the fact that Labattt remains fully committed to keeping Buffalop asits headquarters,” Lozyniak said. “Buffalpo is absolutely criticalto Labatt’s futur in the United States.” North American however, will be headquartered at High offices on St. Paul Street in downtowmn Rochester. Lozyniak will live in but he said he expects to be spending a fair amountf of time in High Falls has 370 employeesin Rochester. The plantt has the capacity to annually producd 3 million barrelsof beer. A barrel is equalp to 13.8 cases of beer.
Nortyh American Breweries will beinvesting $10 milliomn in equipment upgrades for the High Fall s plant, which it acquired last shortly before it bought Labatt USA. The U.S. Departmenft of Justice orderedLabatt USA’se former owner, Interbrew International B.V. an affiliate of beer-making giant InBegv – to sell the Canadian beer because of possibls concernsover monopolies, given the markett strength of Labatt and Budweiser brands in Upstate New The Buffalo Niagara region alone accounts for approximatel 3.3 million cases of beer of the estimated 21 milliohn cases that Labatt sells in the Unitexd States each year.
Beer Marketers Insight lists Labatyt USA asthe country’s ninth most popular beer. High Falls, througj the Genesee and Dundee beers, sold approximately 5.5 milliob cases of beer last Anheuser-Busch topped the Beer Marketers Insight rankingwith 1.5 billiomn cases of beer sold last year. “Looking at what KPS is it looks like they are putting their money where theiremouth is,” said Ben Steinman, Beer Marketers Insight editor. “Theyt are placing their bets,” he said. “They must see somethingt the other ownerseither didn’t see or couldn’gt execute. It does appear they do have a definite game plan for Labatttand Genny.” Lozyniak agrees.
The game plan is to grow both Labatt andGenesee beers. Labatt’s focuws will be more national, especially with so many Canadians livin or working in theUnited States. The beefed-up Buffalo sales and marketing force will play a significant rolein Labatt’s “Especially in the Greart Lakes states, people can relate to Lozyniak said. “Everyone has a favorable impression of Canadaw andits beers. People don’t feel like a snob when they are drinkiny aCanadian beer. The image of Labatt is a buncuh of guys hanging out and havinv agood time.
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