Murtha tries to make Pittsburgh-Latrobe deal

By C.M. Mortimer
TRIBUNE-REVIEW
Thursday, June 1, 2006

U.S. Rep. John Murtha is trying to broker a deal for bankrupt
Pittsburgh Brewing Co. to acquire Latrobe Brewing Co., which is
scheduled to close July 31 unless a buyer can be found.

Two weeks ago, InBev USA, parent of Latrobe Brewing, the maker of
Rolling Rock and Rock Green Light beers, announced the sale of the
Rolling Rock brand to Anheuser-Busch Cos. for $82 million. The sale did
not include the production facilities in Latrobe.

"We have had some very preliminary discussions by telephone about a
potential buyer for Latrobe Brewing, and Pittsburgh Brewing Co. is one
of those potential buyers," Cindy Abram, spokeswoman for Murtha, a
Johnstown Democrat, said Wednesday.

Pittsburgh Brewing had nothing to say about the plans. "We have no
comment on the matter of Latrobe Brewing Co. at this time," spokesman
Jeff Vavro said yesterday.

Mario Leduc, plant manager at Latrobe Brewing, declined comment and
referred calls to InBev USA in Norwalk, Conn. Officials there could not
be reached for comment.

However, Pittsburgh Brewing co-chairman Joseph Piccirilli told the
Tribune-Review last week that if he had a "wish list," Latrobe Brewing
Co. would be on the list.

Abram said Murtha is willing to talk to any potential buyer. She did
not disclose whether there have been talks with other brewers.

Asked about potential funding to help Pittsburgh Brewing achieve a
takeover, Abram said there aren't many federal programs available, and
money would likely have to be channeled through the state and the
Governor's Action Team. Frank Horrigan, regional director for the
Action Team in Pittsburgh, said yesterday he was not aware of the
talks.

Ken Ream, staff representative for the International Union of
Electronics Workers/Communications Workers of America, which represents
bottlers and brewers at both breweries, said he was aware of the
speculation.

"I heard rumors to that effect, but he (Piccirilli) never said anything
about it. All we're trying to do is save jobs at both places," Ream
said.

The union represents 150 workers at Pittsburgh Brewing and 154 workers
at Latrobe Brewing. Ream said unionized workers at both breweries have
contracts that contain successorship clauses, which means that if a
brewer bought either plant they would inherit the union contracts.

St. Louis-based Anheuser-Busch said it plans to brew Rolling Rock at
its facility in Newark, N.J., and didn't need the Latrobe plant.

Speculation surfaced Wednesday that if Pittsburgh Brewing is successful
in acquiring Latrobe Brewing, the Lawrenceville-based brewer would brew
Rolling Rock at Latrobe Brewing as a contract brewer for Anheuser-Busch
--- possibly saving the jobs of 200 workers at the brewery, founded in
1893.

An Anheuser-Busch spokesman said that information was incorrect and
that no contract brewing proposal involving Pittsburgh Brewing has been
broached.

"We continue with our plans to brew the Rolling Rock brands in one or
more of our 12 breweries, where we have sufficient capacity. We have a
duty to our existing employees to keep those operations at peak
performance. We remain hopeful that InBev will be successful in finding
a suitable buyer for the brewery," said Dave Peacock, vice president,
business and finance operations for Anheuser-Busch.

Latrobe Brewing produced about 852,000 barrels of beer last year at a
facility that has the capacity to produce 1.3 million barrels, due in
large part to a high-capacity bottling system introduced in 2003.

Latrobe Mayor Tom Marflak expressed doubt about the deal.

"I haven't heard about this, and I'd be shocked if it happened because
I just don't understand how a company like Pittsburgh Brewing, which is
in financial trouble, could have the ability to conduct this kind of
transaction."