Daily Newsletter

16 November 2023

Daily Newsletter

16 November 2023

Labatt invests $19.4m to boost production at London brewery

Out of the total C$26.6m investment, C$13.5m will be used for the installation of a four-tank fermenting cellar.

Soumya Sharma November 15 2023

Labatt Breweries of Canada has announced investing C$26.6m ($19.4m) to boost the production capabilities of its brewery in London, Ontario.

Out of the total investment, the company will use C$13.09m to support the installation of two new packaging lines to expand the existing operational capabilities of the brewhouse.

Compared with the site's previous models, the new packaging technology will use a sustainable paperboard that will allow the company to use significantly less amount of glue for packaging its products.

Once installed, the packaging lines will also help in enhancing Labatt’s inspection capabilities in operations to further ensure that the packaging can fulfil the requirements of the local consumers. 

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

“We are constantly doing what's needed to ensure the brewery is prepared for future growth through production and environmental efficiencies, and this injection of capital will go a long way to optimise our brewery.”

The remaining C$13.5m from the total C$26.6m investment will be used to add a four-tank fermenting cellar to help the company address the increasing demands of its customers.

The latest investment, according to Labatt, is part of its ongoing commitment to boost the use of sustainable solutions and prepare its breweries for future growth.

It builds on the brewery’s C$52.6m investment announced in 2021 to support packaging line upgrades, sustainable innovations, and other improvements. 

Labatt Breweries of Canada Legal & Corporate Affairs vice-president Jeff Ryan said: “Our London brewery is the largest in Labatt's network, brewing over 40% of the beer we brew for Canadians, and this significant investment boosts the facility's production capacity and sustainability performance.

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

In 2022, flexible packaging was the most used pack material in the global household product packaging industry

The packaging volume in the global household products industry was 199 billion units in 2022, and is expected to grow at a CAGR of >3% by 2027, per GlobalData estimates. Flexible packaging was the most used pack material in 2022 accounting for a share of 68.6%, followed by rigid plastics. Flexible packaging offers ease of use and storage, allowing customers to access and store household and pet care products conveniently. The lightweight nature of flexible packaging reduces transportation costs and increases efficiency throughout the supply chain.

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