Skip to main content

Coors-Molson Merger Would Have Little Effect on Industry

GOLDEN, Colo. - The potential merger between Adolph Coors Co. here and Molson, Inc. would likely have little if any impact on the industry and the brands' distribution and marketing in the United States, according to an industry analyst.

According to reports, Molson's board was expected to meet yesterday to vote on the deal, which would be structured as a "merger of equals." Coors reports its earnings today and reportedly would like a finalized merger to show to its shareholders.

"There are little to no synergies and little to no overlap," Brian Sudano, s.v.p., consulting services at New York-based Beverage Marketing Corp. told Progressive Grocer. "Coors already distributes Molson in the United States, and Molson already distributes Coors in Canada. Both of them have little excess capacity for there to be any huge manufacturing synergies, and both are high-cost producers."

One thing the merger will address is succession planning, Sudano said, especially since Peter Coors is contemplating running for Congress.

--Richard Turcsik
This ad will auto-close in 10 seconds