Boston Beer buys into Latrobe brewery

From Rolling Rock to Samuel Adams beer?

The Boston Beer Co., brewer of Samuel Adams beers, has signed an agreement with a wholly-owned subsidiary of City Brewing Co. to brew some of its beer in Latrobe, Pa.

According to a company press release, Boston Beer and City Brewing will upgrade the brewery by purchasing equipment to allow for Samuel Adams’ traditional brewing process, use of proprietary yeasts and extended aging time, and beer bottling and kegging. Brewing of Boston Beer products is expected to begin during the second quarter.

“This agreement gives us increased flexibility,” said Martin Roper, President & CEO of Boston Beer.

The agreement with City Brewing is not expected to have an impact on brewing operations at the Boston Beer’s breweries in Boston and Cincinnati.

Boston Beer continues to investigate building a new brewery near Boston. The company originally sold beer brewed under contract at other breweries, but now produces the majority of its beer at its own Cincinnati brewery.

Boston Beer’s investment at Latrobe is expected to be between $3 million and $7 million and commensurate with Boston Beer’s commitment to the brewery, the parties are discussing the potential of Boston Beer having an ownership interest in the brewing facility.

City Brewery acquired the Latrobe facility last year after owner InBev sold the Rolling Rock brand to Anheuser-Busch and announced it would close or sell the brewery where Rolling Rock had been brewed since 1939. City is headquartered in LaCrosse, Wis., where it has also brewed products for Boston Beer.