Sapporo Optimizing North American Production to Enable Growth in Canada

Sapporo Optimizing North American Production to Enable Growth in Canada 
Company actively seeking buyer for its Dartmouth facility 
GUELPH, ON, March 6, 2013 /CNW/ - Sapporo International, the parent company of 
Sleeman Breweries Ltd., announced today its intent to sell its Dartmouth, N.S. 
brewing facility. As part of the strategy to meet growing demand for Sleeman 
and Sapporo in Canada and the U.S. in the short-term while also enhancing 
overall productivity across its North American operations, Sapporo 
International will also shift 200,000 hectolitres (hL) of Sapporo products, 
bound for export to the U.S., from its Guelph, ON facility to a third party 
brewing partner in the United States effective June 2013. 
"Sapporo has been increasing its North American market share in a category 
that is experiencing only modest growth. In order to consolidate and maximize 
this momentum, we must make some immediate and crucial changes to our North 
American brewing strategy to improve productivity across our entire 
operation," says Shige Yokoi, President and CEO, Sleeman Breweries Ltd. 
"The impetus behind our intent to sell the Dartmouth facility, which produces 
less than two per cent of annual volume, is to establish the long-term 
competitive resilience we need in an aggressive market by taking advantage of 
the economies of scale our North American operations offer," Yokoi adds. 
To this end, Sleeman has already engaged some prospective buyers who have 
indicated a desire to keep the facility as a brewery, including keeping some 
or all of the 32 affected employees. However, should an appropriate buyer 
not be identified by July 2013, the company will make the difficult decision 
to close the facility. 
"Please let me emphasize my appreciation for the hard work and contributions 
our employees have put into Sleeman at every level," says Yokoi. "I know this 
decision creates a lot of concern and anxiety among our 32 Dartmouth staff in 
particular. By actively advancing a sale now, we very much hope to secure the 
jobs and viability of this brewery. But in the long-term interests of our 
North American operations, we felt we needed to achieve some efficiencies of 
scale right away to stay competitive against our much larger continental and 
global rivals." 
Sleeman Breweries currently produces more than 1.8 million hL of volume a year 
at facilities across Canada, including 27,000 hL at Dartmouth. By shifting 
200,000 hl of Sapporo (which has been exported to the U.S. since 2002) from 
Guelph to the U.S., including the Sapporo kegs, the Sapporo Premium 20.3oz 
bottle, 16oz bottle, 12oz bottle and 12oz can and Sapporo Premium Light 12oz 
bottle, the company will be able to deliver on consumer demand in a more 
productive manner by the end of Q2 2013. Guelph will continue to produce all 
Sapporo products for Canada and the Premium 22oz can and the Sapporo Reserve 
22oz can and 12oz bottle for both the U.S. and Canadian markets. 
"We have to act now in order to capitalize on our competitive momentum and the 
efficiencies and production benefits our integrated North American operations 
offer will help us advance this goal, including the long-term productivity of 
our facilities in Chambly, Quebec, Guelph, Ontario and Vernon, British 
Columbia," says Yokoi. 
About Sleeman Breweries Limited
Sleeman Breweries Ltd. is the third largest brewing company nation-wide. The 
company has supplemented its core Sleeman brands, which are available in every 
province, with a family of exceptional regional brands. These include Okanagan 
Spring in British Columbia and Unibroue in Quebec. Sleeman entered the rapidly 
growing value price category in 1999 by acquiring the Stroh portfolio brands 
in Canada, including Old Milwaukee and Pabst Blue Ribbon. In 2006, Sleeman 
Breweries Limited was acquired by Sapporo Holdings Limited of Japan. The 
company markets and/or distributes world class imported products such as 
Guinness, Sol, Dos Equis and Tecate and is supported by 1,000 employees. 
About Sapporo Holdings Limited Sapporo Holdings Limited is a Japanese holding 
company with an enterprise value of C$4.0 billion that is active in five 
business segments and includes Sapporo International as its overseas business 
segment. Its Alcohol segment is engaged in the manufacture and sale of beer, 
RTD, sparkling liquor, wine, shochu, liquor and others. The company 
manufactures alcohol products including Sapporo Draft Beer, Yebisu Beer and 
Mugi & Hop. The company also distributes Yellow Tail and Beringer in Japan. 
The Food & Beverage segment manufactures and sells beverages, such as tea, 
mineral water, coffee, carbonated drinks, fruit juice, health drinks, sports 
drinks and others as well as foods, such as, soup, lemon seasoning and others. 
It distributes Ocean Spray Cranberry in Japan. Its Restaurant segment is 
involved in the operation of beer parlors and restaurants under the store name 
Ginza Lion. The Real Estate segment is engaged in the operation and management 
of complex facilities that contains offices, housing, restaurants, and 
commercial and cultural facilities under the name Yebisu Garden Place, in 
addition to commercial and amusement complex facilities. 
Contact: Stéphane Duval, Vice President, Marketing, Sleeman Breweries 
Ltd.sduval@sleeman.ca / 514-702-1730 
SOURCE: SLEEMAN BREWERIES LTD. 
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CO: SLEEMAN BREWERIES LTD.
ST: Ontario 
-0- Mar/06/2013 17:04 GMT
 
 
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