SHAKE IN CITY BREWERY

Southland Times, Issue 25483, 2 October 1944, Page 3

SHAKE IN CITY BREWERY

OFFER REJECTED BY

TRUST

After consideration the Invercargill Licensing Trust rejected an offer to purchase an interest in the brewery in Mary street, the property of Southland Breweries. This rejection will not affect the decision of the company to begin brewing operations this week under - the supervision of an expert brewer and malster, who has arrived from Christchurch to take charge of operations.

The rejection of the offer by the trust was not unanimous. Members of the trust who favoured acceptance took the view that an interest in the brewery would enable the trust to purchase beer at a price that would result not only in cheaper beer for the public, but also in a better profit for the trust. They also argued that it would be sound business for the trust to support local industry. There was the fact, too, that a company in which the trust had no interest would be able to enter into competition with the trust by selling beer on a wholesale basis and at a cheaper rate than the trust, dependent for its supplies on northern breweries, would find possible. The following were the terms submitted to the trust for its consideration:—The trust to purchase 5000 shares, which would give it 25 per cent, of the holdings. All the retail profits to go to the trust, which would also have a 25 per cent, share of the wholesale business. IDLE FOR 10 YEARS Although the brewery is equipped with up-to-date plant, it has been standing idle since it was built 10 years ago. The reason for this, it has been stated, was lack of capital. Recently, however, fresh capital was obtained. The company now has £20,000 in capital, and the property itself, land, building and equipment, has an estimated value of £37,000. The building contains £12,000 worth of plant and everything is said to be in perfect working order. On the top floor there is a mill to grind the malt and another floor houses the plant for drying out the hogsheads with an air draught which does in one and a-half hours what previously took two days. The storehouse is filled with five-gal-lon, 10-gallon and 18-gallon kegs. There is no bottling plant at the brewery and the chilling and bottling of the beer will be done by another firm in the city.