2 July, 2008 - SABMiller and Molson Coors Brewing Company have completed the deal to combine their US and Puerto Rican operations to form MillerCoors - in a move the partners said could save US$500 million a year in cost synergies.
The new venture was launched this week and the company said it would be a “brand-led U.S. brewer with the scale, resources and distribution platform to succeed in the highly competitive marketplace.”
The two beer giants each have five members on the newly formed board.
Leo Kiely, Chief Executive of the company, said: “MillerCoors will be entrepreneurial, with the ability to operate with speed and agility in the marketplace, backed by the powerful combined resources of two exceptionally successful companies.
“We will drive profitable growth and bring new energy to the U.S. beer industry. Our focus now is to deliver on the $500 million in identified annualized cost synergies by improving sourcing across our eight major breweries, building a streamlined organization and leveraging the scale of the new company. Our talented people are experienced and passionate about this business and – importantly – are determined to win.”
Last year, the two companies achieved combined beer sales of 82.3 million hectolitres, with combined net revenue of US$7 billion and EBIT of US$743 million.