Adolph Coors Company today announced plans by the company's U.K. brewing business, Coors Brewers Limited (CBL), to close its Cape Hill brewery in Birmingham, England. The Cape Hill facility is one of four breweries operated by CBL, the entity formed by Coors' recent acquisition of the majority of the Bass Brewers business in the United Kingdom from Interbrew S.A.

The brewery closure is the result of Interbrew's decision to retain the Bass and Tennent's brands in the U.K. and the Bass Brewers Worldwide export business, which previously were part of Bass Brewers. The Cape Hill brewery has produced approximately 1 million barrels (U.S.) of these brands annually. Production is anticipated to cease at the Cape Hill brewery by the end of 2002, when Interbrew is expected to start producing these brands in its own breweries. Due to the anticipated 70 percent reduction in production volume at Cape Hill resulting from loss of the Bass and Tennent's brands to Interbrew, CBL management concluded that the brewery will no longer be economically viable.

The decision to close the Cape Hill facility by year-end 2002 followed a comprehensive review by CBL management of the company's U.K. operations. The review was completed after ACC's purchase of the Bass Brewers business from Interbrew on Feb. 2, 2002. Cape Hill's remaining volume will eventually be transferred to CBL's Burton-on-Trent brewery.

CBL is offering the 320 Cape Hill brewery employees assistance through a substantial support program that will include a redeployment program to assist people still seeking employment, with comprehensive efforts being made to find jobs inside and outside the company.

The company anticipates a cash impact from the Cape Hill brewery closure in the range of 15-20 million pounds ($21-28 million) near the end of 2002, with a cash return in approximately two years. ACC plans to reflect the brewery closure in its purchase price allocation for the CBL acquisition, resulting in no significant book charges related to closing the plant. The company anticipates annualized pre-tax cost savings from the brewery closure of approximately 11-15 million pounds ($16-21 million) beginning in the second quarter of 2003.

Founded in 1873, Adolph Coors Company is the third-largest U.S. brewer and the world's eighth-largest brewer. The company sells its products in North America, Europe, Latin America, the Caribbean and Asia. Coors Brewers Limited is the second-largest brewer in the United Kingdom, with the U.K.'s leading brand, Carling.