N.B. government lures Molson with millions

The New Brunswick government will help Molson build a new brewery in Moncton with millions of dollars in incentives, in part to keep it from being built in Halifax.

Business New Brunswick Minister Peter Mesheau says his government is just trying to stay competitive.

"When you look at it, the Molson brewery was coming. So do you let it go to Halifax? Or do you try to keep it here in New Brunswick and grow jobs here in New Brunswick?" said Mesheau.

Molson announced it picked Moncton as the site for a new brewery because it has a growing workforce and is a key entry point into the eastern Canadian market. A $3.5-million forgivable loan from the province helped clinch the deal.

The quality of the water, a key ingredient in the production of beer, was also a deciding factor.

The $35-million brewery in Moncton will produce Canadian, Coors and other Molson products. Molson will brew more than six million 12-packs annually for the regional market, beginning in 2007.

Competitor Moosehead Breweries revealed the Lord government's incentives add up to nearly $6 million.

In addition to the forgivable loan, N.B. Liquor has agreed to give Molson a lower warehousing fee over the next two years, said Derek Oland, president of Moosehead, Molson's competitor.

Oland also revealed the province will consider Molson a local brewer, subject to the same fees as Moosehead.

Oland said that adds up to nearly $6 million in incentives, tipping the playing field in Molson's favour.