SABMiller and Molson Coors to combine US operations

[mahatmakanejeeves]

Source: Reuters UK

SABMiller and Molson Coors to combine US operations
Tue Oct 9, 2007 1:58 PM BST
By David Jones

LONDON (Reuters) - Brewers SABMiller (SAB.L) and Molson Coors Brewing (TAP.N) have agreed to combine their U.S. operations to create a venture with annual sales of $6.6 billion that will be a strong number-two player to Anheuser-Busch (BUD.N).

The venture, MillerCoors, will generate around $500 million of annual cost savings by year three after completion and is subject to obtaining clearance from U.S. competition authorities, the two groups said in a statement on Tuesday.

"We expect this approval to be forthcoming ... The combination will create a strong number-two player in the U.S. beer market with 30 percent market share," said analyst Matthew Webb at Cazenove.

The deal brings together the second-largest U.S. brewer with beer brands such as Miller Lite and Miller Genuine Draft and the third-largest, Molson Coors, which brews Coors Light, Molson Canadian and Molson Dry beers.

Read more: http://investing.reuters.co.uk/news/articleinvesting.aspx?type=tnBusinessNews&storyID=2007-10-09T125811Z_01_WLB3071_RTRIDST_0_BUSINESS-SABMILLER-MOLSONCOORS-DC.XML

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People who don't drink the beer brewed by either one will continue not to drink the beer brewed by the combined company. Or vice versa. Whatever.

[alfredo]

1. I wouldn't drink Coors if you paid me. Now that miller is teaming up

with them, they are on my shit list too.

[Botany]

2. I quit drinking Molson when they became Coors

[rurallib]

3. Have youever seen such consolidation in all industries

Seems now like every category has one or two behemoths and about 2 or 3 smaller (yet still large) also rans. Choice is limited anymore and pricing seems to be almost fixed by the big boys.
eg retail: Wally, Target, Kmart/sears
Soaps, detergents: P&G, UNIlever
Cars: Toyota, GM. Ford
cereal: General Food, Kellogg, Post
Chocolates: Hershey, Nestle, Mars

It is scary. Teddy Roosevelt must be rolling in his grave.
Why this kind of consolidation could lead to bad things.

[Warpy]

4. It's all carbonated cat pee, anyway

which is why you have to drink the stuff chilled to near freezing.

Good beer is good at room temperature.

[modrepub]

6. What are u

some kind of Canuck??? Never heard of drinking warm beer that tastes good. Maybe I need te experiment or something...suggestions?

[Warpy]

7. I was a home brewer for years

and lived in a part of the country that had Guinness on tap at room temperature. Home brewing taught me that a batch that hadn't worked properly was drinkable when cold, skunky when warm. Keeping it cold covers up an inferior product, in other words.

Generally speaking, the darker brews will always taste better at room temperature than lagers do, and will taste better at room temperature than chilled. One of the best beers I ever had was a warm Bock beer with lemon during Oktoberfest, though, so color isn't always an indication.

If beer is a means to a cheap drunk, then by all means stick to US commercial lagers drunk at near freezing. They'll get you there with the minimum hit to your wallet. However, if you're interested in beer, consider trying microbrews and other quality brews at room temperature to see exactly what the differences are.

[CatholicEdHead]

5. Beer will still be as awful as ever