Beer: Coors and
Miller to brew together under MillerCoors
The No.2 and No.3 beer brewers
in the U.S. will merge under a new company called MillerCoors.
Hold on tight Budweiser drinkers, there is a new kid in
town - MillerCoors. Miller Brewing Co. and Coors Brewing Co.
announced a joint venture between the US #2 Miller and #3 Coors
domestic operations and the new company will go by the name
MillerCoors. The new joint venture will make for a real strong
competition against the U.S. number one brewer Anheuser-Busch
Cos. but could result in some job cuts in the administrative
departments of Miller Brewing Co. For now there will be no plant
closures - all six breweries of Miller and the two breweries of
Coors will stay open, but overlapping administrative functions
will equal to job-cuts at Miller. Still, it is estimated that
the new joint venture will have 29% of the U.S. market, compared
to the Anheuser-Busch's 48%.
Pete Coors, vice chairman of Molson
Coors Brewing Co., will be chairman of MillerCoors and Graham
Mackay, chief executive officer of SABMiller Plc, will be vice
chairman of the new company. Each of the parent companies of
Miller and Coors will hold 50% stake in MillerCoors and will
hold five chairs each on the board of directors.