Molson Coors Brewing Co. and SABMiller PLC plan to combine their U.S. and Puerto Rican operations, creating a beer powerhouse with annual revenue of about $6.6 billion. The venture will be called MillerCoors. The two companies will share control of the venture, but because of the economic value of their respective units SABMiller will have a 58% economic interest to Molson Coors’s 42% interest.
More about the story here. Apparently, Coors has a much more modern plant than Miller does in Milwaukee. Oh, damn. Not looking good for Wisconsin's last remaining mega-brewer. On the plus side, this article says the deal might hurt Bud.
UPDATE!: According to an article in the Milwaukee Journal Sentinel,
None of Miller's six breweries, or the two breweries operated by Coors, will be closed as the result of the merger, said Pete Marino, Miller spokesman.
Good news for Milwaukee, and especially good news for all of those who work at the brewery. Here's hoping that Mr. Marino speaks the truth!
4 comments:
Pack your bags kids were going to Colorado. Just kidding. Though if I had one of the corporate jobs that was now redundant I might be working on my resume. It's going to be an interesting couple of weeks/months ahead.
Oh and I don't think this will significantly affect AB. They still have a 49% share of the US beer market. The new MillerCoors will only have about 30%. So imagine you're a 200lb kid on the playground. There's a new kid in school looking to fight. He weighs in at 120. Are you worried?
coors is the worst beer around.
Terrible? Certainly. Worst? Well, I can only assume you've never drunk Muscova. Ugh.
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