Boston Beer Co., which has been looking for extra brewing capacity and has been talking about building a brewery in Massachusetts, has signed a deal with City Brewing of Wisconsin to contract brew some Samuel Adams products at the former home of Rolling Rock beer.
City Brewing purchase the former Latrobe Brewing Co. plant in Pennsylvania last year from InBev, which sold the Rolling Rock brand to Anheuser-Busch. It is in the process of a major overhaul of the brewery, with plans to reopen the facility in the next few weeks.
Under the deal, Boston Beer will invest $3 million to $7 million in upgrades to the brewery. Boston Beer is also negotiating a possible partial ownership stake in the facility. The company said it expects Samuel Adams to start rolling off the bottling line at the plant sometime during the second quarter of 2007. The company says it is still considering a plan to build a brewery in Freetown, Mass. The latest cost projections for that brewery range from $190 million to $210 million.
City Brewing says it plans to hire about 250 workers, many of them former Latrobe Brewery employees.