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Blue in Buffalo

key_center-thumb_blue.jpg

The Buffalo News is reporting today that Buffalo is to become the headquarters for Labatt USA, brewers of regional favorite Labatt Blue beer. For once it appears that our local penchant for beer is paying off. Buffalo is one of the strongest markets for Labatt in the United States. Also helping the cause is Buffalo's proximity to Toronto, world headquarters for Labatt. Executives and sales staff will be able to drive to meetings instead of having to fly between Toronto and Connecticut, where Labatt USA is presently located.

The move, scheduled for spring, will bring about 20 sales and marketing jobs to the Key Center downtown. There are also a number of fringe benefits to come with this move. Sponsorships and other corporate resources such as advertising, consulting, and corporate entertaining will come along with the headquarters. According to company President Glen Walter, Labatt USA is considering adding a tasting room featuring the company's brands on tap for corporate visitors to try.

The most impressive feature of this move is the fact that Labatt USA did not even contact one Buffalo economic development agency to inquire about a move to Buffalo. Labatt USA sort of decided to make this move, Out of the Blue. Lets hope other Canadian companies with operations in the United States are watching this move because if this works out well for Labatt, then Buffalo could be well poised to gain a few more U.S. headquarters.

Who wants to join me in toasting our new headquarters with a Blue?

Key Center photo credit: CitySky Photography by Nate Farnworth.





Pauldub January 25, 2007 12:48 PM

I assumed that eac would post on this. After all he is the Beermeister...

sally January 25, 2007 12:49 PM

Great re-write of the Buffalo News article. Great news about Labatt I wonder if they would have made the move HAD they contacted our useless economic development staff. My guess is they would have been turned off if they had.

Lou January 25, 2007 12:57 PM

Its only 20 jobs or so but they were never contact by anyone in Buffalo nor did they contact anyone in Buffalo. They made this choice strictly on its own merits internally to the company. Therefore, this sets a strong precedent:
1) that Buffalo can succeed and have a bright future despite its shortcomings
2) that Buffalo has a natural and distinctive attraction for Canadian companies to locate their US corporate headquarters and centers.
3) that its recognized in Canada that Buffalo is not an ordinary US city unaware of Canadians, Canada or their culture. We are a city which loves Canadians, appreciates them, understands them and welcomes them (few other cities can offer that) to the point where they feel as at home in Buffalo as they would in any other Canadian city.

As Montreal, Toronto, St Catherines, Hamilton & Niagara Falls grow, Buffalo should become a very highly prized and newly discovered US access point for their businesses.

That says alot!

GMAB January 25, 2007 12:58 PM

This may be the sign of things to come!! Avoid discussions with the Mayor, Erie County, and the economic development people. Strike your own deal and go your own way. It looks like everyone is better off without their interference!

Sulley January 25, 2007 01:14 PM

Lou, Lou, Lou...

Those weren't the reasons at all. It's just that, well... we Buffalonians are a big chunk of their US sales.

;-)

Ike January 25, 2007 01:27 PM

very cool...baby steps, baby steps

Chris January 25, 2007 01:28 PM

Labatt USA brings 20 NEW jobs to Buffalo. These are 20 people who will probably relocate from CT. These jobs most likely will pay more then 50k. This is 1 million in wages.
Say to yourself the next time you are at a bar and there is a Bud Light or Miller light special.... Buffalo, St. Louis and Milwaukee. And order a Blue. Besides we know the other two are piss water!

Mute January 25, 2007 01:43 PM

Our Economic Development team is useless. I was trying to get a friend of mine to bring his business here from out Los Angeles and after weeks of playing phone tag with someone in their office, and no returned calls or even an email, my friend changed his mind. This was through the so called BERC office too, in case your wondering which group we were suppost of worked with.

Scott E. Krajeski January 25, 2007 01:46 PM

The real question is how many square feet they are taking in the Key Center??? Yet more Class A office space leased. That's ANOTHER great part of the announcement.

malooga January 25, 2007 01:46 PM

Chris -

I have to take exception with your post. Any beer drinker worth his or her salt would know that it's Miller LITE, not light.

But you're excused, since you know that it's piss water.

Edward Street January 25, 2007 01:51 PM

Maybe Labatt can be convinced to make an offer on the naming rights for Ralph Wilson Stadium, instead of leaving a multi-million dollar county owned asset (naming rights to an NFL stadium) earn zero dollars as a vanity plate for Ralph. I'd love to see them take that agressive US marketing step! Labatt Field!

STEEL January 25, 2007 01:52 PM

And it looks like another major Data center coming to the area as well. What are the negative nellies going to do for a living if Buffalo's economy does really start to improve?

Chris January 25, 2007 01:54 PM

In regards to my typo. Sorry I am at work. I am an avid beer drinker and thus do not consider Miller LITE or Bud beer. Just as I do not considers chicken scraps on a bone from Domino's with crushed red pepper as "sauce" chicken wings.

lulu January 25, 2007 01:59 PM

Lou - you make an absolutely false comment: Its only 20 jobs or so but they were never contact by anyone in Buffalo nor did they contact anyone in Buffalo. Just because the local group that reached out and followed through with Labatt is choosing to remain anonymous does not mean that they cease to exist. Labatt USA was approached as many more companies will be in the future, and the deal was struck, possibly because of the below the radar screen approach taken. Let's raise a glass to even more refreshing economic development to come.

L J January 25, 2007 02:41 PM

www.tk421.net/gallery/sounds/mmmbeer.wav

Quinn January 25, 2007 02:46 PM

I personally love Labatt's work and will do my part in the future to support this worthy business endeavour.

William Zabka All-Stars January 25, 2007 02:56 PM

Great news...

... too bad Blue is only a step or two above "piss water." I will do my part and convince my friends to drink it.

Na zdrowie!!!

coolrobc January 25, 2007 02:57 PM

Just got back from the Buffalo Talks series with Bashar Issa. This is exactly the type of business movement (albeit on a grander scale) that he seems interested in creating in Buffalo.

Inside Info January 25, 2007 03:09 PM

This deal was brought about by some very hard work at one of our local real estate brokerage firms (and labatts desire to be here). No government agency had anything to do with this.

I think the same thing can be said for the last handful of new companies/investors that have moved or are moving into Buffalo recently.

It's not the politicians job to recruit businesses.....
Politicians need to focus on policy that makes WNY a business friendly place.

I got a joke for you....
What do you get when a bunch of politicians get together to bring business to buffalo? BASS PRO.
(sorry for the lame joke, but you get the point)

lindy ruff January 25, 2007 03:12 PM

would be great to see the US distribution center moved from connecticut as well...go sabres!

Marty Biron January 25, 2007 03:21 PM

Hey Lindy.... Nothing

Hey Lindy.... Nothing

Hey Lindy, They probably won't move the distribution from CT. I pretty sure most alchohol imports go through CT because of their favorable state import/export laws laws.

But what do I know, I'm just a goalie.

kc January 25, 2007 03:25 PM

Most professional and progressive companies know to skip our local govt and go to private sector to move forward.
Welcome Labatt and your portfolio of beers.
Just think...Key Center landed Tim Horton's+Blue....next Boston Pizza hdqtrs!

N.W. Farnsworth January 25, 2007 03:50 PM

Photo thanks to N.W. Farnsworth (without bottle graphic)

http://farnsworth.zenfolio.com/

MikeyJ January 25, 2007 03:53 PM

I think the article in the paper said that the proximity to Toronto where the company HQ is made it an easier desicion to come to Buffalo. It also said that the Syracuse, Rochester and Buffalo market have the most buisness. The article went on to say that the average citizen drinks more than a six pack a year, if I remember correctly. I agree with lindy...bring the distribution center here since this is where it's sold!!

CT January 25, 2007 04:00 PM

They saw how badly this Bass Pro debacle went and must have said, "Screw those hosers in the Buffalo Government eh?"

LaydownSally January 25, 2007 04:08 PM

I find it interesting that they mention sponsorships right off the bat. When approached with the idea of sponsorships in the past, their own distributors have not seen any benefit in sponsoring locals as why would they need to? It would be great to see a company other then M&T step up and start spending money in the community...

And Sally - Once again, you have seen and made sure to point out the negative in this development. I would like to commend your ability to always appear as the BRO Debby Downer - congrats!

siberryfan January 25, 2007 04:13 PM

Now if only Molson would move a branch to Buffalo... we'd have more reason to cheer for the Blue and the Gold!

Rob January 25, 2007 04:13 PM

Great news with Labatt but what is this posting, a CUT-AND-PASTE from the Buffalo News! I read the same damn thing in the paper. If you're going to write an article, at least give us some new details. What about the new employees relocating here? How much space and where in the Key Center? Lets hear some new info!

siberryfan January 25, 2007 04:14 PM

Now if only Molson would move a branch to Buffalo... we'd have more reason to cheer for the Blue and the Gold!

jen January 25, 2007 04:27 PM

Great news. I hope it leads to more jobs, opportunities, more businesses realizing that Buffalo is a great place to be located (cheaper than Toronto and NYC) corporate giving to local organizations, yadda, yadda. Great!

sally January 25, 2007 04:36 PM

Laydown: There is no negative in my post, it is great that they are moving here. It is great that they did not contact our inept economic development team. Government should not have to be involved in business sitings, it is only our out of wack taxes and regulations that necessitate governmental intervention. And like all of the old communist 5 year plans of old they always fail. See also Bass Pro

N.W. Farnsworth January 25, 2007 04:44 PM

I agree with Sally on that!

BCB January 25, 2007 04:48 PM

Labatt's has always been my beer. Obviously it's quite popular in this region. Hopefully more Canadian companies will see the value of an American office in Buffalo until then..... "I'll have a blue please"

perry January 25, 2007 04:50 PM

No Sally, you were negative...you should've said that stuff in the first e-mail.

Doug S. January 25, 2007 04:57 PM

Cool beans about Labatt establishing a presence here. As a former employee of the Buffalo Niagara Enterprise, I can say that one of their main efforts has been trying to make Buffalo the HQ for Canadian firms due to a lot of the reasons (proximity to Toronto, Canadian firms establishing a US address, costs, etc...). The BNE funded major trade advertising, media relations and business development campaigns up there...I believe they still do. It's not an easy task to convince companies to come down here, but also not impossible.

LaydownSally January 25, 2007 04:58 PM

Sally,

If I didn't see your name next to every topic and usually relating what you feel is the "reality" of the situation, I don't think I would have jumped so quickly to reply twenty comments later...

Oh - and comparing Buffalo development to the Stalin 5 Year Plans is just funny - next thing you know Giambra will be carted off to Siberia...

Wait, we're are on to something here...

Corey in South Buffalo January 25, 2007 05:31 PM

Great news. I usually drink Molson but I am changing soley to Blue from now on!!!

BenMcD January 25, 2007 05:36 PM

So, if the government is so bad at attracting business, why are they always being petitioned to improve the economy?

doug January 25, 2007 05:51 PM

AW! Beauty, eh!

ah wookookookookookookoo!

GM January 25, 2007 06:08 PM

I wonder if someone made Mr. Issa aware of this move today? These are the kind of companies that he needs to move into his tower. This is very encouraging.

eac January 25, 2007 06:16 PM

paul-

ah, well- if this were a story about beer, I'd have run w/it. Not to say I haven't had my share of Blue, mind you, but that in- and of-itself doesn't make it beer :)

Say to yourself the next time you are at a bar and there is a Bud Light or Miller light special.... Buffalo, St. Louis and Milwaukee. And order a Blue. Besides we know the other two are piss water!

Or... you could order a Flying Bison- the Buffalo Lager might work for the hop-averse among you.

Think Local: Drink Local!

sbrof January 25, 2007 06:32 PM

:-) that is cool news,

I do think that our historic connection with Canada is a part of this decision, we sing the canadian national anthem at our games, almost always fly a canadian flag next to an American, we are a BI-national region culturaly and economically. Anything to strengthen our ties to Toronto I see as a benefit. NYC certainly doesn't like to give us the time of day.

How long until we can a go train extension to Buffalo?!? now that would be cool.

Jim January 25, 2007 07:07 PM

LaydownSally

Get your facts straight! The SLA has restricted the amount of advertising that distributors can do. It is not that they do not want to sponsor, it is that they can not.

hodgepodge January 25, 2007 07:46 PM

screw Molsons, once my favorite, because Coors owns them now. Thank you Labatts!! there's more business going on here than meets the eye but alot of us prefer to remain under the radar. when's the free drink up?

bucky January 25, 2007 08:30 PM

Great news that Buffalo can now say, "Home of Labatt USA Headquarters." Also proud to say I've spent a good fortune of all money I've made over the past 10 years on Labatt products and helped this happen. lol

lawn job January 25, 2007 09:22 PM

I heard from a reliable source that the Labatt owners have been in contact with Buffalo Bills owner Ralph Wilson. Could this mean the football team's days in Buffalo are numbered?

300miles January 25, 2007 09:54 PM

Why would you connect their interest in the Bills with relocation? Maybe they're interested in naming rights.

Especially after they move their own HQ here.

tone x January 25, 2007 10:43 PM

eac beat me to it, but big up flying bison. their us headquarters is already here! we just arent doing our part by consuming large quantities of their tasty brews and thus driving up the effect on our economy!

mike January 25, 2007 10:59 PM

This is great news, but let's think about it on a larger scale. Property values in Toronto (residential and commercial) are insanely high, a by-product of a booming economy. What if Buffalo could play a role in that economy? Outsourcing has proven that alot of "backoffice" jobs can be performed via telecommuting in a different city or, as is often the case, a different continent. Think about it, an average Torontonian making a good salary cannot afford 500K for a Cape Cod. The company he works for pays a ridiculous amount for the 40 sq ft of his cubicle. Verizon has plans to install it's fiber optic network in the city(FIOS). This offers an amazing amount of bandwidth, more than enough to support video conferencing and networking. What if we could offer affordable housing(under 100K) ,a cool city with arts,sports and entertainment(not to mention incredible architecture) and create a niche as a telecommuting hub? The West Side, with it's affordable housing and proximity to the Peace Bridge would be an ideal place for this . A real "green community" with very little reliance on cars. People who work at home all day will want to get out and patronize local businesses. UB graduates so many bi-lingual students with backgrounds in medicine and research, maybe we could keep them here and allow them to become part of the "telecommuting community" as well as participants in the medical corridor.

Cook January 25, 2007 11:18 PM

Maybe our economic development team could work with labatt to see if they would also like to have a year round attraction on the inner harbor where they can test beers, have a blue shop, and have an interactive exhibit like bud does at busch gardens. These are things they should take and grow into something unique and creative. Instead of throwing out the old lets try to get an espn sports zone that is played out. We should have a house of Labatt Blue usa testing facility in the inner harbor with in walking distance to HSBC areana, and on the water in the summer months. Buffalo lets start to capitilize on our unique locations.

And edward st brilliant idea on contacting them about calling the ralph - Labatt Blue Stadium- "Home of the Buffalo Bills"
How Perfect - So many intersting ideas.

david January 26, 2007 12:25 AM

Just let them operate as a business and stay out of their way. We shouldn't expect them to do anything beyond operating as a business.

buffalo james January 26, 2007 01:47 AM

cook is spot on... with no 'flagship' type location, they'll largely be out of sight/out of mind. the only benefit would be 20, presumably, good paying jobs. not good enough, knowing how us buffalonians are. we need everything to be in our face to truly enjoy it.

salesguy January 26, 2007 09:03 AM

Last couple of posts are so out of line with real world..dave got it right
InBev just moving office with 20 staff to new location...period.
No fanfare etc...if any other market no press would even be present. It wasn't rocket science for InBev...your one brand in US market...Labatt...all others transfered to AB...largest market in US..Buffalo+Upsate NY...why not move support team to market to be closer to action and frankly only action brand has in US(labatt a dog outside of thisarea). No brainer.
Don't expect big sponsership or community development. Local distributor already contrbutes a ton to area for Labatts..thank Try-It.
Good news is 20 jobs here is plus.

GMAB January 26, 2007 10:06 AM

EXACTLY RIGHT DAVID.

Let them come in without the hype and high expectations. We all want to have a hand in their pockets as they enter the building. Are we really that desperate?

fill January 26, 2007 10:20 AM

Labatt is such a part of our lives that it invariably comes as a surprise when I absent-mindedly order a blue in NYC (or more recently, in New Orleans) and get a blank stare !

Quantum January 26, 2007 10:29 AM

PUUULLLLLEEEEZZZZEE, don;t sic Rich Tobe on them, he'll find a baseboard in their office suite without the appropriate number of finishing nails in it.

So, what exactly are we paying Tobe for? And, why isn't there some type of tickler file (I know, ancient terminology) for our "Department of Eceonomic Development" to use as a reminder that these businesses need to be revisited?

Jeeeesh............

nicoleshoe January 26, 2007 10:50 AM

first of all, having 55 comments on this post is hillarious!
#1. im excited. it will only help sponsorships and partnerships in the communty.
#2. im a molson girl, but cheers to labbatt
#3. what the hell, im sending my resume in.

William Zabka All-Stars January 26, 2007 11:30 AM

Buying Labatt won't help Buffalo at all. Until Labatt makes a significant investment in their Buffalo operations, money spent on Labatt is money spent on Canada.

If you people want to support Buffalo, I echo some of the above sentiments: DRINK FLYING BISON. Their bottom line actually impacts Buffalo, Labatt's doesn't even come close even WITH this handful of jobs. Not to mention, any F.B. brew is a trillion times tastier than that swill they push up north. Unless you like the taste of stale urine...

All that said, I love the local investment. Let's hope it only continues to grow!

buffalo james January 26, 2007 03:38 PM

(lite) stale urine is mmm good!

Mmmm Labatts, mmmm slot machines January 26, 2007 04:57 PM

Addictive gambling - very bad, should be illegal, people can't be trusted to run their own lives.

Addictive alcohol - great, people can be trusted to run their own lives!

Labatts reminds you to please comment responsibly.

too short January 26, 2007 07:22 PM

Two words: Buffalo Lager

Robert Preskop January 26, 2007 08:50 PM

Despite the fact that it is only 20 jobs, the fact remains the Labatt USA corporate move to Buffalo is valid proof that our city is a good place for business. I am also happy that they are taking class A office space in the Key Center downtown. This is also valid proof that downtown is becoming a competitive and attractive business address. To all these negative nellies who want to move down south and get away from boring, depressing old Buffalo, eat your negative words because Buffalo is starting to come back to life. Who needs Charlotte, Atlanta, Miami, and Houston?

Matt P. January 29, 2007 06:18 PM

Maybe I'm wrong, but didn't Labatt have their US HQ here before, in the 80s or 90s before they moved?