Coors, Miller in Joint Venture
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DENVER — Brewers Molson Coors Brewing Co. and SABMiller PLC said today they will combine their American operations in a joint venture.
The makers of Miller Lite, Original Coors, and Coors Light said they will share ownership equally in the new venture which they said should help them compete more effectively.
The industry leader in America is Anheuser-Busch Cos., maker of Budweiser, Michelob, and Bud Light.
The financial terms of the deal were not disclosed.
The new company will be called MillerCoors, the companies said. London-based SABMiller, which brews Miller Lite as well as a slew of European beers, and Molson Coors, the brewer of Coors Light and the craft beer Blue Moon, will each have a 50% voting interest in the venture and have five representatives on its board of directors.
Under the terms of the agreement, the companies said they will conduct all of their American business exclusively through the venture.
The companies project MillerCoors will have combined annual beer sales of 69 million American barrels with revenue of about $6.6 billion.
The companies said the deal will add to both of their earnings in the second full year of combined operations.
