Molson Coors Brewing Co. said Jan. 6 that it will stop production at its Irwindale, Calif., brewery by September 2020 and entered an agreement with local rival Pabst Brewing Company LLC giving the latter an option to buy the facility.

"This move will allow us to optimize our brewery footprint while streamlining our operations for greater efficiency across the network," said Brian Erhardt, Molson Coors' chief integrated supply chain officer.

"While it was a very difficult decision, we have extra capacity in our system and Irwindale's production can be absorbed by other breweries in our network."

Irwindale facility employs 470 people and produces brands such as Miller Lite, Coors Light and Miller High Life.

Products currently made in the Irwindale facility will be transitioned to the company's breweries in Colorado and Texas.

In October 2019, the company unveiled a recovery plan, which includes job cuts and reorganizing its office locations, to improve the business.

The company said that while the closure of the Irwindale facility is not part of the reorganization plan, it does not impact previously announced cost savings guidance.