Tumwater brewery to close next week

Modern Brewery Age, June 23, 2003

On June 27th, Miller Brewing Co.'s Tumwater brewery will officially close. SABMiller executives have said that they are reviewing offers for the property from manufacturers and real-estate developers.

Although the four-million barrel capacity brewery was Miller's smallest, it is a sprawling complex. The brewery's buildings cover 176 acres, with an 896,067 square foot main brewery that was built in several stages from 1936 to 1986. There is also an older 126,919 square foot brewery area, built in 1903, and in some disrepair. SABMiller hopes to sell the whole place for $15 million.

Local officials hope that the buyer will be a manufacturer, so that new jobs will replace the lost brewery jobs.

Local rumor-mills are buzzing with word that Anheuser-Busch is buying the brewery, but to those in the industry that seems highly unlikely.

However, the plant has been modernized extensively in the past few years. Miller has made more than $10 million in improvements at the plant since buying it from Pabst Brewing Co. in 1999.

Obstacles to future use as a brewery include potential wastewater treatment issues, and union contractual obligations. Under the severance agreements negotiated with Miller, any potential beverage maker would be required to recognize the brewery unions if the plant is reopened in the next year.

SABMiller executives are said to have several potential buyers for the plant, including manufacturers and real-estate developers. The company is currently considering offers for the plant and property as one unit.

Miller, a subsidiary of London-based SABMiller, announced in January that it would close the brewery, saying it would require too much further investment to bring it up to Miller's efficiency standards.