Beverages

Analysis: Molson Coors’ Game-Changing Moment

AB InBev keeps the beer crown as the new No. 2 gets a major boost

DENVER -- “This is no ordinary Wednesday, and we are truly excited about this game-changing opportunity for Molson Coors.”

molson coors miller coors

There is little hyperbole in this statement from Mark Hunter, president and CEO of Molson Coors Brewing Co.

With its inclusion as a critical piece of the Anheuser-Busch InBev-SABMiller merger, Molson Coors comes out a winner in the United States and beyond, poised to gain complete ownership of the 8-year-old MillerCoors partnership in the U.S. and taking over the Miller beer brand globally.

This “will help accelerate Molson Coors’ growth strategy by strengthening our international beer portfolio with a powerful and authentic American brand, as well as expand our presence in high-growth markets,” Hunter said.

Assuming all transactions are approved by federal regulators, Molson Coors will be firmly positioned as the No. 2 brewer in the United States (27% market share) with ownership of two of the four largest beer brands: Coors Light and Miller Light.

But beyond that, consider what MillerCoors has accomplished since its creation as a joint partnership between Molson Coors and SABMiller in 2007.

Brands like Redd’s and Smith & Forge have exclusively existed under the MillerCoors umbrella. Setting aside varying definitions of “craft beer,” its craft arm, Tenth and Blake, is the No. 1 craft brewer in the United States, while Blue Moon is the largest craft-beer brand, according to the company. Leinenkugel’s Summer Shandy, another MillerCoors brand, basically created the popular shandy category, while yet-to-be-rolled-out Henry’s Hard Soda has the company positioned for new-product growth. All these brands will join the portfolio of Molson Coors, a company that, prior to 2007, was regarded mainly for Coors, Coors Light and its Molson beers.

On top of that, Molson Coors will maintain ownership of key imported beer brands, such as Peroni and Pilsner Urquell.

“This agreement catapults Molson Coors to the next level,” Hunter said. “[It] advances our ambition to be the first choice for consumers and customers.”

While AB Inbev—or whatever a new, combined company might be called—basks in the spotlight of its acquisition coup, Molson Coors finds itself in an enviable position of a revitalized No. 2 with enhanced share near and far.

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