Labatt to Spend $40 Million on London Brewery Expansion

LONDON, ON (June 28, 2005) – Labatt Breweries of Canada today announced a $40 million investment in London, Ont., Labatt's hometown, to fund one of the largest capital expansions in its London brewery's 158-year history. When the expansion is complete, the London brewery will have the capacity to produce more than one billion bottles of beer per year.

Expansion work will begin in July and is scheduled to be completed by the end of this year with capacity coming on line at the beginning of 2006. The expansion will deliver a 45% increase in capacity through such additions as:

• Eight vertical uni-tanks, each with a capacity of more than one million bottles of beer (uni-tanks are a combination fermenting and ageing tank)
  
• State of the art keg line capable of producing 360 kegs per hour
  
• New brewhouse that can produce more than four million bottles of beer per day
  
• New yeast propagation facility
  
• New can packer to meet the increasing consumer demand for new types of can packages
  
• Three high speed automated palletizers for packaging lines

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