Brewery hits new jobs peak

0 Comments | La Crosse Tribune, Jun 05, 2003 | by Cahalan, Steve

The number of employees at the City Brewery has increased in the past few weeks to 314 - the highest since the former G. Heileman Brewery reopened in November 1999 under its current name.

The previous peak was about 300 employees last summer, City Brewing Co. President Randy Smith said Wednesday. Employment dropped to about 200 at times during the winter months, he said. The brewery had about 250 employees during much of May, and has added more in the last week or two, Smith said.

A seasonal increase in beverage consumption and production is the main reason for the increase, and Smith expects employment to decline in the fall as temperatures and demand drop.

"The count right now is 314," Smith said. "Now, 53 of those are what we call temporary employees who we bring in usually seasonally as demand increases. They will be working here to supplement the regular work force, to provide relief when people need time off because of the length of their work or vacations and because of the press of business right now."

Employment increases for the busy summer months and decreases in the fall "have been a typical practice at the brewery" for many years, Smith said.

"It's always difficult to prognosticate about the business," Smith said. "The short-term outlook looks reasonably positive. But it all hinges on consumer demand for the products."

Smith said the City Brewery mostly makes beverages for about two dozen companies under contracts. Some examples are Smirnoff Ice, Mike's Hard Lemonade and AriZona ready-to-drink teas.

Smith also said sales of City Brewery's own brands "are real good. Our products continue to increase in sales. They are a small percentage (less than 5 percent) of our total output, but they are going up. And we hope one day they will be a more significant contributor to our total output. It takes time to build these brands."

In recent months, the brewery has expanded distribution of its own products throughout the Chicago area, which had been the largest market for the G. Heileman Brewery's products. "We've established some nice little beachheads down there, in the stores we're in," Smith said of the Chicago market.

"Chicago has helped," Smith said. "But we are experiencing, 'growth in even the core market we originally went into," unlike some brewers who have been losing market share in the region, he said. The original core market consists of Wisconsin, eastern Minnesota , eastern Iowa and northern Illinois counties that border Wisconsin.

"I wasn't surprised" by the recent employment increase at, the brewery, said Ron Buschman, a business agent for Teamsters Local 695, which represents hourly workers at the brewery. "It's not unusual to be up in the summer time.

"I think we're holding our own," Buschman said. "We had a tough winter."

"I'm not surprised, but I am pleased," Mayor John Medinger said of the recent employment increase. "I think we all know that this brewery's been headed in the right direction. Not only do they have a good regional product, but they've been very successful in their contracts."