The proposed merger of brewing giants Molson Coors and SABMiller sounds like a good financial venture for the companies in the ever-competitive beer industry.
We hope it ends up being a good deal for Colorado as well.
Over the years, Adolph Coors Co. has been a major employer and an outstanding corporate citizen. (Would we have the Colorado Rockies to celebrate without Peter Coors?) The Coors family has donated millions to myriad local causes.
After the 2005 merger with Molson, the company maintained headquarters in both Denver and Montreal. If the company were to move its corporate operations out of the Denver region, it could be a real blow to the community, both in terms of leadership and philanthropy.
According to those involved in the deal, the headquarters’ location for MillerCoors is still up in the air. Of course, we hope company officials choose to make their main home here, but any corporate presence would be better than a total retreat.
The issue at hand centers on finances. Executives expect the consolidation to save the companies more than $500 million through the elimination of duplicate functions as well as by reducing shipping costs and through other means.
The new MillerCoors, with about 28 percent of the market share, would be a serious competitor to industry leader Anheuser-Busch. Certainly, the efficiencies MillerCoors would gain through combining operations will play a role in the company’s success in that regard.
We understand that. But we also know how important it is for great cities and regions to have a strong business community that’s willing to share its leadership talents on local boards and support worthy causes through philanthropy.
We’re glad to see what seems like a beneficial deal, particularly for Molson Coors, which will split voting shares with SABMiller as well as seats on the newly constituted board. In addition, Pete Coors will serve as chairman of the new joint venture.
We hope to see some of that corporate heft remain in the region.
