Expansion Brewing at Coors, in an Advisory by Industrialinfo.com

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The following is an advisory by Industrialinfo.com (Industrial Information Resources Inc.; Houston, Texas). The country's third largest beer brewer, Adolph Coors Company (NYSE: RKY) (Golden, Co), is underway with a $68 million program to increase brewing capacity through an expansion at their Memphis, Tennessee brewery. The program began over a year ago with the goal of increasing brewing capacity by a million barrels per year.

The challenge is to increase capacity without having to shut down and loose the current 3.8 million barrel per year production volume. Utilizing in-house engineering talent and support from alliance engineering firm Jacobs Engineering Group (Pasadena, Ca), Coors has developed a plan to achieve this through strategic replacement of old equipment and automation integration. The project also involves implementation of a new technology, which removes oxygen that can be harmful to malt during the brewing process.

With all of these systems in place along with brewing and packaging debottlenecks, Coors hopes to achieve its goal of increasing capacity by February of 2003. Peter H. Coors, chairman of Coors Brewing Company, added, `The beer industry has had a flat year; however, the company has high expectations from the Memphis brewery and its ability to increase volume.`

Coors reported net sales of $1.87 billion for the first three quarters of this year and have released third quarter net income increase of thirteen percent compared with the same period last year. Coors brews about 23 million barrels per year between its Golden, Colorado and Memphis, Tennessee breweries, making it the third largest domestic brewer.