US-based Molson Coors Beverage Company is planning to close production at its brewery in Irwindale, California by September.

The company has also signed an agreement with the Pabst Brewing Co granting them an option to acquire the brewery for $150m.

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

“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.”

Established in 1980, the Irwindale brewery is engaged in the production of various trademarks for Pabst. Brands include Coors Light, Miller Lite, Miller High Life, MGD, Steel Reserve and Miller 64. It is said to be Molson Coors’ lowest-volume brewery in the US.

Last year, the brewery produced 4.8 million barrels, shipping products to 261 distributors.

The decision to cease production at the facility was not part of the company’s corporate restructuring and revitalisation plan announced in October.

Molson Coors’ plan focuses on streamlining the organisation and re-investing $150m annually back into its businesses across the world.

Brands produced at the facility will be moved to its other breweries over the next nine months, noted the company.

Erhardt added: “I want to be clear our decision in no way reflects the Irwindale brewery’s performance, which has been strong over the years.

“We recognise this decision creates uncertainty for our employees in Irwindale and we will support them throughout the transition. Although this decision was difficult, we are making it in the best long-term interest of the company.”