USA: Coors to purchase the Raines Road facility

The local Molson Coors Brewing Co. plant may have a future after all. Plant manager Carolyn Hardy and a group of unnamed investors have signed a letter of intent to purchase the Raines Road facility, which employs about 300 people, Memphis Commercial Appeal posted June 28.

"I am excited, I am extremely hopeful and I'm energized because we've gotten this far," said Hardy. "This is a great opportunity for the employees and the community."

She said a sales agreement could be reached Aug. 7 and the deal could close Sept. 1, the date Coors had set for ceasing production at the plant.

Hardy and the investors want to purchase the Southeast Memphis facility even though they don't know exactly what would be produced or packaged there. Coors has begun to shift production to other facilities -- in Colorado, Virginia and Canada -- as the company phases out the Memphis plant.

Hardy said if she and the investors succeed in purchasing the facility, they would focus on contract beverage packaging and brewing, essentially operating a third-party service for brewers or other beverage manufacturers.

"We are a unique facility," said Hardy. "If someone wanted to send us their liquid, we can package it. We can also manufacture it.

"I have such confidence in the team here, in terms of what they can deliver to potential customers, that I can't say enough good things about them, and I know they will be successful."

Hardy said the plant is set up to package almost any liquid, from water to sports beverages and beer.

Memphis Regional Chamber officials - who have been working closely with Hardy on the possible purchase - were thrilled at the news.

"I know (Hardy) intends to succeed, and her determination has motivated me personally," said John Moore, president and CEO of the chamber. "It's good news to get to this stage."

But the investment team will first have to hammer out a labor agreement with the employee union.

Wisconsin-based City Brewing Co.'s bid to purchase the facility collapsed in May after negotiations with the Teamsters Local 1196, which represents about 250 plant employees, came to a halt. Plant employees overwhelmingly rejected City Brewing's offer.

Hardy said she hopes the new round of negotiations will be more productive.

"I will say that the relationship we've enjoyed with the Teamsters has been very good," said Hardy. "We've negotiated two contracts with them under my tenure, and I don't see any reason for things to be any different."

Wesley Fiveash, secretary treasurer of Teamsters Local 1196, said plant employees are willing to listen to Hardy's offer.

"We are looking forward to talking with the representatives of the investment group," said Fiveash. "Hopefully we can reach reach an agreement we can bring back to the membership that they can live with, so the plant can continue to be a part of the Memphis community and provide jobs to people in this area."

Hardy said that even if a labor agreement isn't reached, the investment group would not walk away from purchasing the plant. Instead, they would pursue other business opportunities.

An air of uncertainty has been hanging over the plant since February 2005, when Molson Coors announced that the 1.3 million square-foot plant would be closed.

The Memphis plant brewed Coors Light for export, plus Zima XXX, Keystone Light, Coors Non-Alcoholic and Blue Moon.

The brewery started out as a Schlitz brewery in 1971 and was sold to Stroh Brewery Co. before it became part of Adolph Coors Co. in 1990.

Coors said the closure of the Memphis plant is part of a larger savings plan that was expected to save the company $35 million a year beginning in 2007

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