Posted on 07/22/2004 6:35:22 AM PDT by Clive
MONTREAL (CP) - Molson Inc., Canada's largest brewer, has agreed to merge with Adolph Coors Co. in a $6-billion US deal that creates a new beer behemoth and ends the independence of two of North America's biggest family-run brewing icons.
"This transaction allows us to create a stronger company in a consolidating global industry while preserving Molson's rich heritage as North America's oldest beer company and Canada's leading brewer," Eric Molson, chairman of Molson, said in a combined statement with Coors early Thursday.
The agreement would create the world's fifth biggest brewer - to be called Molson Coors Brewing Co. - as measured by volume of beer sold and the third-biggest brewer in the United States.
"This historic transaction combines 350 years of brewing excellence and will create a dynamic and competitive organization able to deliver long-term value to shareholders while continuing to be an important contributor to the communities in which we operate," Coors chairman Peter Coors said from Golden, Colo.
The Montreal company revealed the structure of the deal when it reported financial results early Thursday.
"The transaction is structured as a share exchange whereby Molson Inc. shareholders can either convert their shares to shares of the new entity or can elect to receive exchangeable shares on a tax deferred basis," Molson said.
Thursday's merger continues a wave of consolidation in the global beer industry that has seen U.S. and European brewers get bigger to grow more rapidly in an increasingly competitive international market.
It also means that Canada's two major brewers, which account for nearly nine in 10 bottles of beer sold in this country - will effectively be foreign owned. Molson's chief rival, Toronto-based Labatt Brewing, is controlled by Belgian beer giant Interbrew.
For Molson, the merger with Coors should expand its markets in the United States and help improve the company's financial fortunes, which have been hurt by an ill-fated 2002 expansion into Brazil and flat beer sales in Canada.
Molson reported Thursday that excluding special charges for restructuring and gains, net profits fell 19.3 per cent to $68.3 million in the three months ended June 30, the first quarter of the company's 2005 fiscal year. That was down from profits of $84.6 million last year.
Meanwhile, total Molson beer sales volume fell 3.4 per cent, including 2.8 per cent in Canada and 4.2 per cent in Brazil.
Quarterly revenues rose to $675 million from $661.8 million, the company reported.
But the XYL likes silver bullet so I am merged back into the clutches of Molson.
Hopefully the airwaves will have seen the last of that stupid rant.
Of course tastes vary from person to person. The brands you mention are all excellent beers. I find the Canadian lagers (especially Molson Canadian and Moosehead) to be very good. Molson Ice is also very good but the higher alcohol content can sneak up on you. I've never cared much for Molson Golden. The Coors products are typical American waterbeer.
I'll always remember the episode of The Great White North (SCTV) where Doug and Bob discuss why Canadian beer bottles don't have twist off caps like American bottles. Their conclusion was that, the Canadian beer having a higher alcohol content, having to use the opener slows you down a bit so you don't get too toasted.
I agree with you.
Molson makes great beer. That watered down, low-alcoholic garbage Coors produces cannot by any stretch of the term be called beer. Its just flavored water.
"Drinking Coors is like fornicating in a canoe. Is Molsen any better?"
Yes, some of their beers actually have some flavour.
Actually, for those who really like beer, there's no reason to buy flavourless beers from faceless corporations any more. There's so many smaller and micro breweries out there now producing products that are so much better.
That is true of Canadian beer in general.
A couple of years ago a soldier from Fort Drum came across the river and tossed back a few, consuming what he would ordinarily have consumed in the US.
When he was arrested, he was standing on the bed of a truck loudly proclaiming that he was the Messiah and the end of the world was neigh.
My favorite is Salvator. Before that I drank Bass, Guinness and Killian's. All of those, I still enjoy. But, none of those come close to Salvator.
I think that "I am Canadian' ad campaign is a spin-off of the Lieberal adscam affair!
Using out-takes and bloopers.
Kind of a twofer for their 'Save Canada' blitz. ;^)
Hope Molsen doesn't get Coors Lighted to death. Molsen Ice is great. I don't mind buying Canadian when it comes to beer. If Canadians can do one thing right, it's beer.
Most Molson products are OK at best, IMHO. I do like Molson Export (Ale), which I don't think they export (?).
Moosehead beer is OK, but Moosehead Pale Ale is very good, better than Alexander Keith's IPA. Keith's IPA is fairly widely available in Canada now, Moosehead PA not so much. I've never like bottled Keith's IPA, but from the tap it's pretty good. Moosehead is still truly independent. Keith's is produced by Oland's Brewery, which is owned by Labatt's, which is owned by Interbrew, unfortunately.
That Old Canadian Beer Myth Rises Again
http://worldofbeer.com/brightbeer/canbeermyth.html
It is not true that Canadian beer has more alcohol than USA beer. It has to do with the way it is measured; by volume or percentage.
I hear they're going to start producing a new line of bottled water called "Moland Springs" too.
Not the only one :-)
Canada is world-class in other departments, such as SEX , AND DRUGS and AND ROCK'N'ROLL
"In heaven they have no beer,"
That's why we drink it here!"
...........Frankie Yankovic
My 2cents:
Molsen and Coors..lousy, tasteless, beer...more like colored water. Best traditional domestic, 'Yuengling.'
There, I said it and I'm glad. (See what you started?)
Brewery/Brand Beer Alcohol %
Budweiser (U.S) Budweiser 5.0
Budweiser Bud Light 4.2
Budweiser Bud Ice 5.5
Budweiser Bud Ice Light 4.1
Coors Coors Original 5.0
Coors Coors Light 4.2
Coors Coors Extra Gold 5.0
Coors Blue Moon White 5.4
Labatt Labatt Blue 5.0
Moosehead Moosehead 5.0
Miller MGD 5.0
Miller MGD Lite 4.5
Miller High Life 5.5
Miller Miller Lite 4.5
Sam Adams Boston Lager 4.8
Yuengling Yuengling Lager 4.4
I agree. Yuengling is by far my favorite "everyday beer". My mousepad is from Yuengling and my favorite hat is from Yuengling. Other than "Lager", I enjoy Guinness and believe it or not Blue Moon from the Coors plant is not bad.
Q: Do you enjoy Yuengling?
A: I don't know, I've never Yuengled.
These days, I'm liking Leinenkugels. Mmmm. Shame it's only 10:15 a.m. Cheers!
They also know how to operate railroads.
I'm not familiar with Salvator?
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