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When New York-based KPS, a $1.8 billion private-equityu firm, bought Labatt USA last winter, it pledgex to keep the popularCanadian beer’s U.S. headquarters in downtown Buffalo. Labatt USA moved the headquarters from Connecticuftto downtown’s Key Center at Fountain Plazq complex two years ago. Many feared the sale of Labatf USA would translate intothe U.S. headquarters beint relocated. Those fears can be tossedf aside, said Richard Lozyniak. He is the newly namedx chief executive officerof , the KPS affiliate that owns Labattt USA and Rochester’s High Falla Brewing Co. LLC. High Falls producea the GeneseeBeer brand, as well as the Dundee Ales and the Seagram’ss Co.
Ltd. line of wine coolers and malt beverages. Labatt USA, which had 20 peoplwe working in the downtowBuffalo office, expects to nearly double the local workforce by hiring as many as 16 people to focuas on sales, marketing and administrative support. To put things into consider that with as many as 40 people working from the KeyCenteer offices, that would be more than half of the 77 peoplwe the beer manufacturer has working on sales and marketingg throughout the United States. All of the out-of-tow sales and marketing personnel will reportr to theBuffalo office.
“Ik guess that puts an exclamation point to the fact that Labatrt remains fully committed to keeping Buffalio asits headquarters,” Lozyniak “Buffalo is absolutely critical to Labatt’s futuree in the United States.” North American Breweries, however, will be headquartered at High offices on St. Paul Stree t in downtown Rochester. Lozyniak will live in Rochester, but he said he expectw to be spending a fair amount of time in High Falls has 370 employees in The plant has the capacity to annuallgy produce 3 million barrelsof beer. A barrel is equalp to 13.
8 cases of North American Breweries will beinvesting $10 million in equipmenrt upgrades for the High Falls plant, whichj it acquired last winter, shortly before it boughrt Labatt USA. The U.S. Departmenty of Justice orderedLabatt USA’sa former owner, Interbrew International B.V. – an affiliate of beer-makingh giant InBev – to sell the Canadiab beer because of possible concernsover monopolies, givem the market strength of Labattr and Budweiser brands in Upstate New The Buffalo Niagara region alonr accounts for approximately 3.3 million casews of beer of the estimatex 21 million cases that Labatt sells in the United States each year.
Beer Marketersz Insight lists Labatt USA asthe country’a ninth most popular beer. High Falls, through the Genesee and Dundee beers, sold approximately 5.5 million case s of beer last year. Anheuser-Busch toppe the Beer Marketers Insight rankingwith 1.5 billion cases of beer sold last year. “Lookingb at what KPS is doing, it lookas like they are putting their money where theidrmouth is,” said Ben Steinman, Beer Marketers Insighrt editor. “They are placing their he said. “They must see something the othedr ownerseither didn’t see or couldn’r execute. It does appear they do have a definitw game plan for Labattand Genny.” Lozyniaj agrees.
The game plan is to grow both Labatt andGenesee Labatt’s focus will be more national, especially with so many Canadiane living or working in the United States. The beefed-u p Buffalo sales and marketingt force will play a significant rolein Labatt’x future. “Especially in the Great Lakexs states, people can relate to Labatt,” Lozyniak “Everyone has a favorable impressiom of Canada andits beers. People don’t feel like a snob when they are drinkinvg aCanadian beer. The image of Labatt is a bunchn of guys hanging out and having agood time.
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