HQ: Chicago
2008 Net Revenue: $6.6 billion
Major Brands: Miller Lite, Coors Light, Blue Moon, Miller Genuine Draft, Miller Chill, Molson Canadian, and Sparks, a flavored malt beverage identified as targeting youth (which forced MillerCoors’ leadership to comply with Attorneys General settlement to reformulate and desist from using youth-friendly marketing tactics)
Holdings/infrastructure:
- MillerCoors is a joint venture, wholly owned and controlled by its two parent companies, London-based SABMiller and Molson Coors Brewing Company
- Percentage Profits Breakdown – SABMiller claims 58 percent interests in profits, while Molson Coors Brewing Company has 42 percent interests
- Eight breweries located in the United States
Workforce: 8,643 employees as of March 31, 2009
CEO Compensation: Leo Kiely, previously CEO of Molson Coors - base salary $990,000 plus bonuses and other compensation/stock gains; total compensation $9.01 million as of April 30, 2008
Beer Market Share (December 2008):
- Second largest brewer in U.S. as single entity (SABMiller and Molson Coors operations; 29.7 percent in United States)
Final Words:
Distributor discontent has lead to a lawsuit by AFP Distributors Inc. in Ohio. AFP contends that “[The company has] attempted to use the creation of MillerCoors for the improper and unlawful purpose of changing the existing distribution network for the Miller Brands and circumventing franchise protection statutes in the United States, including Ohio law.”
Arranged Marriage?
MillerCoors is the offspring of a marriage of convenience made in 2008 between SABMiller and Molson Coors. Chairman Pete Coors touts MillerCoors as a new company on its spiffy new website, but its biggest brands (Coors and Coors Light, Keystone Light, Miller High Life and Miller Lite, Molson Canadian and Pilsner Urquell) have been around for decades. The primary motivation for creating the MillerCoors joint venture is profit, of course. MillerCoors profits (and improves Molson Coors' and SABMiller's bottom lines) by combining operations (which cuts costs and jobs), and shifting manufacture of its brands to the more productive MillerCoors brewery network. And it doesn't hurt that creating MillerCoors helps Molson Coors and SABMiller compete in the U.S. and Puerto Rico against beer behemoth A-B InBev.
