Molson Coors Brewing Co. said Monday it will take a noncash charge in the second quarter after a court ruled Foster’s Group Ltd. gave proper notice of its intent to terminate an agreement with Molson Coors.
The licensing agreement allowed Molson Coors, one of the world’s largest brewers, to manufacture Foster’s beer for the U.S. market.
An Ontario, Canada, trial- court judge said Friday that Foster’s Group gave Molson Coors 12 months’ notice of its plan to terminate the agreement, which was valid. Foster’s gave the notice in October 2006.
The Denver-based brewer said the agreement had a value of about $24.6 million as of April 1, and it is looking at whether there will be additional impairment charges associated with fixed assets used in the production of Foster’s.
The company said it does not expect a material adverse impact on operations.
Shares of Molson Coors fell $3.26, or 3.5 percent, to $89.30 in regular trading on the New York Stock Exchange.
