Pittsburgh Brewing, maker of Iron City, sold as investors tout turnaround
The company making Iron City beer, headquartered in Pittsburgh and brewing in Latrobe, has been sold to Kittanning-based mining company founder Cliff Forrest.
New York-based Verus Investment Partners announced the sale Tuesday, touting the Pittsburgh Brewing Co.'s 150-year history and the turnarounds the company had made since it was bought in 2011 , when Verus went by Uni-World Capital, LLC.
“During Verus' investment period, PBC returned to positive revenue growth and re-established itself as the beer of choice for the greater Pittsburgh area,” the company said in a news release announcing the sale. “PBC also had considerable success in expanding sales outside of Western Pennsylvania.”
The announcement from Verus did not name the buyer or terms of the sale. An assistant to Forrest, founder and president of Rosebud Mining, referred questions about the sale to Pittsburgh Brewing CEO Brian Walsh, who did not respond to requests for comment.
“The business is well positioned to capitalize on consumer trends in the beer industry and we look forward to the next phase of the company's expansion,” Verus partner Richard Moreau said in the announcement.
A spokesman for the Pennsylvania Liquor Control Board said the state received a “change of corporate structure application” for the brewery's liquor license in late December, but he could not disclose any of the new officers or owners because the license change was still under review. Generally, the state can look at a company's finances, corporate structure and officer background as part of its review, but there is no deadline for its completion and the license can remain active while the review is being conducted.
Brewing of the beer in Lawrenceville ended under another previous owner in 2009 and was contracted out to Wisconsin-based City Brewing Co.'s facility in Latrobe, where some former Pittsburgh Brewing employees ended up. A plant manager there deferred to Pittsburgh Brewing on whether the sale will affect production there.
Under Walsh , the company landed partnerships with the Pirates and the Penguins, and launched the “Block House Brewing” label to make and market smaller batches of craft beers.
Bart Watson, chief economist for the Boulder-based Brewer's Association, said Pittsburgh Brewing's estimated 80,000-barrel production in 2016 put them just inside the 50 largest brewers and brands in the country, though he could not say whether they had increased output since then.
“We've seen regional craft brewers struggle over the last year or two. ... The ones that thrive are more focused on their core markets,” Watson said.
Pittsburgh Brewing Co.'s push farther out with Iron City was a sign of a strong brand and corporate backing, he said.
Matthew Santoni is a Tribune-Review staff writer. Reach him at 724 836 6660, msantoni@tribweb.com or on Twitter @msantoni.
