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Strange brew. (cover story)
In: Canadian Business, Jg. 77 (2004-08-16), Heft 16, S. 50-53
Online
serialPeriodical
Zugriff:
The article discusses the merger of Canadian company, Molson Inc., and Colorado company, Coors, which will form the Molson Coors Brewing Co. It's easy to understand why the 66-year-old family patriarch and chairman of Molson Inc. is climbing into bed with the descendants of Adolph Coors, owners of the world's eighth-largest beer maker--another publicly owned but family-controlled brewer that has fallen behind in the global beer race. Like Eric Molson, Peter Coors, the fourth-generation chairman, was watching other brewers get bigger while his own brands suffered stagnant sales. So it was no surprise when, after weeks of speculation, Molson announced on July 22 that it would merge with Coors. When the $7.4-billion deal is completed this fall, the combined entity will become the world's fifth-largest beer company, with total sales of 60 million hectolitres (that's 17.6 billion bottles of beer) and revenue of roughly US$6 billion. Management on both sides of the deal, which has yet to be ratified by shareholders, crowed about the synergies and the leaner, bigger operation it would create. But make no mistake: this deal is about two family empires saving their respective hides. The theory behind the beer industry's new-found thirst for consolidation is that it gives brewers the opportunity to expand into new markets, while saving money through economies of scale and better plant utilization. But Molson and Coors are talking about finding only US$175 million in cost synergies, from things such as integrating sales teams and eliminating headquarters duplication. In a merger this size, that's a drop in the bucket; analysts are skeptical even that amount can be saved. And since Molson already brews and markets Coors products in Canada, and Coors owns nearly half of Molson's U.S. subsidiary, there seems little to be gained from combining under one corporate umbrella. INSET: A six-pack of Canadian beer makers.
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Strange brew. (cover story)
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Autor/in / Beteiligte Person: | Holloway, Andy |
Zeitschrift: | Canadian Business, Jg. 77 (2004-08-16), Heft 16, S. 50-53 |
Veröffentlichung: | 2004 |
Medientyp: | serialPeriodical |
ISSN: | 0008-3100 (print) |
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