City Brewing Company LLC, a contract beverage company based in Wisconsin, has struck a deal to buy the former Coors brewery in Memphis, according to multiple reports.
The deal involves the purchase of all assets of Hardy Bottling Co., 5151 East Raines, for $30 million, with plans to restart the brewing operation at the plant, according to The Commercial Appeal newspaper. City Brewing would make another $11 million investment and would put 500 people to work over five years at the plant, which would operate as a contract brewer for other beer and beverage brands.
The Memphis facility was built in 1971 by Joseph Schlitz Brewing Company and was more recently owned by Coors Brewing Company. Since 2006, Hardy Bottling has used the facility for contract packaging of nonalcoholic drinks.
Blues City Brewery LLC, a subsidiary of City Brewing, is seeking a 15-year property tax freeze that would save the company about $6 million. The Memphis deal apparently hinges on approval of the tax break.
City Brewing has production facilities in La Crosse, Wis., where the company is based, and Latrobe, Pa., and has the capacity to package over 60 million cases annually, according to the company’s website.
City Brewing makes beer, malt beverages, teas and energy drinks, though it’s unclear what the company plans to brew in Memphis.
Yuengling, the oldest American-owned brewery, signed a letter of intent in October to buy the Hardy bottling plant for about $20 million, but that deal stalled soon after the much-publicized deal was announced.