Molson Coors has announced an agreement to purchase the remaining 58 percent of the MillerCoors joint venture, contingent on the closing of AB InBev’s purchase of SABMiller. Here are a few key messages to help clarify the situation to retailers and customers alike.
• MillerCoors is a joint venture between SABMiller and Molson Coors that launched seven years ago.
• MillerCoors currently operates as a standalone company.
• On Oct. 13, AB InBev and SABMiller reached an agreement in principle for SABMiller to sell.
• As predicted, Molson Coors appears poised to acquire the remaining stake in MillerCoors.
• That means once the deal goes into effect, MillerCoors has one parent company and the Miller brands have a single owner.
• As part of the deal, Molson Coors will purchase the rights to the current SABMiller import brands, including Redd’s, Peroni, Pilsner Urquell and Grolsch, and MillerCoors will continue to sell those brands.
• MillerCoors will be run as a separate business unit, just as Molson Coors Canada, Molson Coors Europe and Molson Coors International are today.
• When the transaction closes, Molson Coors and MillerCoors will work together to make decisions regarding how the two companies will work together – as Molson Coors does with its other business units – including infrastructure, brewery operations and offices. Until then, it’s business as usual.
• It’s important to remember that this transaction won’t happen until AB InBev completes the acquisition of SABMiller. This will require regulatory and other approvals around the world and could easily take a year or longer. That means it will be business as usual for a while.