Despite higher commodity costs, MillerCoors is ahead of schedule in realizing savings from last year’s merger of its namesake brewing companies.
In a presentation to analysts Wednesday, MillerCoors chief executive Leo Kiely said the firm will notch $128 million in savings from synergies by the end of June, up from the previously projected $50 million.
Ultimately, MillerCoors expects to save $500 million by the end of 2011 through job cuts and productivity increases.
Much of the efficiency savings derive from “cross brewing” — making Miller brands at Coors breweries in Golden and Elkton, Va., and producing Coors brands at six Miller facilities across the U.S.
“Integration is moving along well,” Kiely said.
He noted that Coors Light has recorded 15 consecutive quarters of sales growth. But Kiely said sales of Miller Lite, which fell 7.5 percent last quarter, have been harder hit by the economy because the brand relies more heavily on sales at bars and restaurants than does Coors Light.
Denver-based Molson Coors Brewing Co., which owns 42 percent of Miller Coors, also said it will cut more costs than originally planned.
Steve Raabe, The Denver Post
