CALGARY, AB & KELOWNA, BC – Big Rock Brewery has announced that its planned joint venture agreement with Fireweed Brewing – the parent company of Tree Brewing – has been cancelled, and the companies will instead proceed with a new “amended transaction.”
The original joint venture was announced in April with a May 31st effective date, and would have seen the two companies jointly run and brew at Big Rock’s Vancouver facility, while the main Tree brewery in Kewlona would be shut down.
This agreement was subsequently delayed, with Big Rock announcing in June that “various conditions precedent to the formal commencement of the joint venture remain outstanding, [and] while Big Rock continues to work towards the satisfaction of these conditions precedent, the joint venture has not yet taken effect.”
In a statement released today, Big Rock describes the new agreement as follows:
Big Rock has offered to acquire from Fireweed certain brewing assets and inventory related to Fireweed branded beer and cider for a gross purchase price of approximately $940,000, less amounts owing by Fireweed to Big Rock. […] As a condition to closing, the parties will enter into a license agreement whereby Big Rock shall be granted an exclusive license to use the Fireweed trademarks and other associated intellectual property (the “Fireweed IP”) with a purchase right to acquire the Fireweed IP.
In addition, Big Rock and Fireweed will enter into contract manufacturing agreements whereby Big Rock shall be authorized to exclusively manufacture all Fireweed branded products in British Columbia and Alberta for subsequent sale by Big Rock in Canada, and in return shall pay a fee to Fireweed.
The new agreement is expected to go into effect in August. Tree/Fireweed have not issued any statement at this time.
UPDATE (July 24th): Tree/Fireweed has noted via a Facebook comment that the Tree Brewing Beer Institute in downtown Kewlona is not part of this new agreement, and will continue to operate independently.