Joint venture officially closes today
SABMiller and Molson Coors Brewing Company announced yesterday the closing of the transaction to combine their U.S. and Puerto Rico operations to create MillerCoors.
MillerCoors will begin operating as a combined entity today.
“As a unified company with a world-class board and leadership team in place, MillerCoors will be able to create tremendous opportunities for innovations in products and services that will allow us to drive profitable growth,” said Pete Coors, Chairman of MillerCoors. “Personally, I am thrilled to be part of such an exciting and innovative organization and look forward to serving as the Chairman of this new business.”
Graham Mackay, Chief Executive of SABMiller, said, “Today is an historic day in the American beer business, not only for the shareholders of both SABMiller and Molson Coors, but for MillerCoors consumers, employees, distributors and business partners. Now that the transaction has closed and MillerCoors is a reality, the strong leadership team we have put in place is ready to execute and realize the tremendous potential of this great organization.”
The transaction portends many changes in the beer marketing landscape. It has already been announced that there will be an effort to accelerate consolidation with Miller and Coors distributors. This will mean that craft brewers will find themselves in a larger wholesaler in many markets. It will also give the combined entity more influence at chain retailers and in the ongoing battle for marketshare with Anheuser-Busch.
The company has no plans to close any breweries at this time, but there is certain to be some consolidation of overhead and workforce.