Jul 28th, 2004, 05:36 PM
I am Canadian?
Fri, July 23, 2004
Molson brew-ha-ha
FIRM MERGES WITH COORS
By MARYANNA LEWYCKYJ, TORONTO SUN
MOLSON'S signature Canadian beer is taking on a foreign flavour. In a blockbuster deal billed as "a merger of equals" Canada's largest brewery, Molson Inc., is teaming up with Adolph Coors Company to create the world's fifth-largest beer giant.
Molson, which was founded in 1786, is North America's oldest beer company, while Coors has roots dating back to 1873 and is the third-largest brewer in the U.S.
The deal brings together two brewing family brewing dynasties, ending a long history of in- dependence.
"This transaction allows us to create a stronger company in a consolidating global industry while preserving Molson's rich heritage as North America's oldest beer company and Canada's leading brewer," chairman Eric Molson said in a statement.
Molson has a 43% market share in Canada, while Coors has a U.S. market share of 11%. The blended companies will have net sales of about $6 billion US a year. The merger is expected to yield $175 million US in annual synergies by 2007.
"This historic transaction combines 350 years of brewing excellence and will create a dynamic and competitive organization able to deliver long-term value to shareholders while continuing to be an important contributor to the societies in which we operate," said Peter H. Coors, chairman of Coors.
Ironically, Coors is headquartered in Golden, Colorado, a city that shares its name with a Molson beer.
The newly formed company will go by the name Molson Coors Brewing Company. Its beverage lineup will include Coors Light (the No. 7 beer worldwide), Molson Canadian (the No. 1 brand in Canada), Carling (the No. 1 brand in the U.K.), Keystone, Rickard's and Kaiser.
Since rival Labatt is owned by Belgium-based Interbrew, the two foreign-linked brewers will now account for nearly nine out of every 10 bottles of beer sold here.
CAN CONVERT SHARES
The deal is structured as a share exchange so that Canadians who own Molson shares will be able to convert their shares to a stake in the new company or opt to get exchangeable shares on a tax-deferred basis. An application will be made to list the shares of Molson Coors Brewing Company on the New York Stock Exchange and the exchangeable shares on the Toronto Stock Exchange.
Eric H. Molson will serve as chairman of the board of the combined firm while W. Leo Kiely III, Coors' current CEO, will be CEO of the new entity.
Workers at Molson's only Ontario bottling plant -- in Toronto on Carlingview Dr. -- were pondering the long-term implications of the merger yesterday. About 400 people work inside the bottling plant and it has 150 transportation staff.
"Obviously there are going to be a lot of people concerned about what it means to them," said John McNamee, vice-present of the Brewery, General and Professional Workers union, which represents 150 transportation employees.
"At this stage there really aren't any answers, except that it's unlikely, in my judgment, that this would mean any plant closures." About 500 workers lost their jobs in 1999 when Molson closed a plant in Barrie.
Molson's catch phrase is "I am Canadian" :/ really quite disgusting that a family run business sell's out to another company, be it American or what ever...
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