A merger of the domestic operations of beermakers Coors and Miller will produce $500 million in savings from a combination of job cuts, reduced shipping expenses, streamlined brewing operations and consolidation of corporate functions.
In a media conference call today, Molson Coors chief executive officer Leo Kiely gave no new clues on where the proposed MillerCoors will locate its headquarters. The company is saying only that the combined brewers will maintain a “significant presence” in Coors Brewing’s hometown of Golden and Miller’s base in Milwaukee.
Pete Coors, who will serve as chairman of MillerCoors, has said previously that the headquarters may be established in a different city. Rumored locations include Chicago and Dallas.
Kiely will become CEO of MillerCoors, whose combination is expected to become official by June 30. Kiely’s successor as CEO of Molson Coors and the firm’s new chief financial officer, to replace Tim Wolf who will become chief integration officer of MillerCoors, are expected to be announced today .
The merger is billed as a way for No. 2 Miller and No. 3 Coors to compete more effectively against Budweiser owner Anheuser-Busch, which has about 50 percent of the U.S. beer market.
“MillerCoors will be a much stronger business than either of our companies could have been on their own,” Kiely said.
MillerCoors expects to realize savings of $50 million in the first year of the merger, another $350 million the second year and the full $500 million by the third year.
Steve Raabe: 303-954-1948 or sraabe@denverpost.com
