Coors, Miller Brewing Companies Merge in Strategic Partnership

Sometimes, being numbers two and three just isn't good enough.

Today, SABMiller Brewing and Molson Coors announced a merger of their domestic operations, according to Adweek.com.

The two companies will have a combined revenue of about $6.6 billion and combined beer sales of 69 million barrels in the US.

Both parent companies will have a 50% voting interest in the venture, with SAB Miller holding a 58% stake, while Molson Coors will hold 42%.

"This transaction is driven by the profound changes in the US alcohol beverage industry that are confronting both of our companies with new challenges," said Pete Coors, vice-chairman of Molson Coors, who will serve as chairman of MillerCoors. "Consumers are broadening their tastes and are increasingly looking for greater choice and differentiation; wine and spirits companies are encroaching on traditional beer occasions, and global beer importers and craft brewers are both taking a larger share of volume and growth." COMPLETE STATEMENT

SABMiller CEO Graham Mackay will serve as vice chairman. Molson Coors CEO Leo Kiely will be CEO of MillerCoors, and Miller Brewing CEO Tom Long will be president and chief commercial officer.

The deal is still subject to a final agreement and approval from US regulatory authorities and Molson Coors Class A shareholders.

Official Statement from SABMiller

AdWeek: Miller, Molson Coors Merge Ops