Tuesday, October 9, 2007

Beer Companies Just Got Bigger

Beer just got bigger in Colorado. It appears that the pressure of "bigger is better" has hit home for the Molson Coors brewing company. In a story released today, two beer giants are filing paperwork to merge. Miller (SABMiller) and Coors are going to be joined at the hip and form a new large mega-brewing company, one that will no doubt try to give giant Anheuser-Busch a run for it's beer money. When this new merger gets final approval, the new company will be called Miller Coors and become the number two brewer.

The merger supposedly will save the two merged companies over $500 million a year in operating expenses. The two companies, three if you count Molson, will have a strong brand line that includes: Miller Lite, MGD, Coors Light, Molson Canadian and a list of others. Pete Coors has been tagged as the new chairman and SAB Miller CEO Graham Mackay will become the vice chair. Molson Coors CEO Leo Kiely will be chief executive and Miller Chief Executive Tom Long will become president and chief commercial officer.

Beer lovers like me will see no difference in which beers will be offered, however you gotta wonder if forming this new larger mega beer company is going to reduce competition and possibly raise prices in the near future. Thank God for smaller microbreweries. They will try their keep the big guys honest and offer some great beers locally and regionally that taste much better than the big name brands.

This article came from FermentedlyChallenged.com
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