An Investment in Innovation and Tradition
A $45 million upgrade to the Oland Brewery in north-end Halifax will result in a state-of-the-art operation that will maintain jobs and increase exports.
The investment, announced today, Oct. 4, by Labatt Breweries of Canada, will allow the company to better compete in markets outside of the Maritimes and will increase production capacity.
The government of Nova Scotia, through its Industrial Expansion Fund, will contribute $4.5 million toward the upgrade.
"This investment in a key, historic Nova Scotia manufacturing company will see the use of technological innovation to become more competitive," said Premier Rodney MacDonald. "Our success as a province is closely linked to our ability to increase exports and bring more dollars into our economy."
The Oland Brewery plant exports 65 per cent of its product outside of the Maritimes. Keith's India Pale Ale is currently Canada's number one premium domestic specialty brand.
The estimated annual direct tax benefit to the province in maintaining the brewery jobs in Halifax is about $7.5 million over five years. The estimated direct provincial tax revenues from the construction project would be about $1.7 million.
"Our investment gives Labatt's room to continue to grow," said Jean Lépine, vice president corporate affairs, Quebec/Atlantic. "It also ensures that the Oland legacy of quality and tradition will continue for years to come."
Part of the province's return on investment is linked to the export of the Alexander Keith's family of brands. Last year, the equivalent of more than 140 million bottles of Alexander Keith's were exported across the country. Every bottle, bottle case, can and keg displays the Nova Scotia flag. Moving forward, the Oland Brewery will renew its marketing and promotional partnership with the province.
Oland Brewery employs 255 people full-time, with a payroll of more than $20 million in the province. The company also spends $22 million annually on goods and services from Nova Scotia businesses.
The Industrial Expansion Fund is one of the methods by which the government of Nova Scotia supports economic development in the province. The fund has flexibility in the amount and type of funding it can provide. The fund is key to helping industries involved in innovative research and technology and contributes to a prosperous and sustainable business climate for Nova Scotia.