Coors/Molson
Coors, the US's #3 brewer will merge with Canada's #1 beer maker Molson to make the #5 brewer in the world. The new company, Molson Coors Brewing, will have around $6 billion in earnings.
Coors, headquartered in Colorado, has about 11% of the US market. The company also owns Carling, the #2 UK brewery. The company was founded in 1873, and features such brands as Coors, Killian, Blue Moon, Keystone, Aspen, and Zima (alcopop) (US), Carling, Allbright, Arc, Breaker, Caffrey's, Hancocks, Lamot, M&B. Stones, Toby, Worthington, and Reef (alcopop), (UK) . Coors has a join venture to sell Dutch Grolsch beer in the UK, and Belgian Korenwolf beer in the UK as well.
Molson is the oldest brewer in North America, founded in 1786. It owns 43% of the Canadian beer market. In 2002 Molson bought Kaiser brewing in Brazil, and so it is the #3 brewer in Brazil, where it has an 11% market share. Its brands include Molson, Carling Black Label, A Marca Bavaria, Ruckard's, and Tornade (in Canada) and Kaiser (Brazil).
Both companies have large family holdings. The companies already have joint ventures. Coors sells Molson in the US and Molson sells Coors in Canada.
Several principles are shown here.
- Both companies need further multinational coverage to compete against Anheuser Busch, SAB Miller, and Interbrew.
- Contrarily, it's a blow to the national identity of Molson (whose ads proclaim "I am Canadian"). That slogan is a slap at Interbrew-owned Labatt, Molson's chief rival, now owned by Belgian Interbrew. Canadian drinkers now have to wonder if Molson's beers and ales start tasting more like Coors.
- Being #3 in a market, as Coors is in the US, is a horribly exposed position, and Coors sales are slipping as rivals Bud and Miller dominate the airwaves. Both Canada and the US are mature markets, so neither company can get any benefit from organic growth.
- Rumors have been strong that Coors might sell out to Dutch brewer Heineken, the #4 brewer. That still may be on tap, as mergers engender mergers.
7:24:30 PM 
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