CHICAGO -- On the heels of InBev's acquisition of Anheuser-Busch, MillerCoors—the joint venture between SABMiller PLC and Molson Coors—said that it will locate its headquarters in downtown Chicago. The company will bring between 300 and 400 executive and management jobs to the city beginning in June 2009. The final decision between Dallas and Chicago was announced to MillerCoors employees Tuesday.
Company officials said that they chose a neutral site to the home city. MillerCoors decided not to settle in Milwaukee, where SABMiller PLC's Miller Brewing Co. is based, or in Golden, [image-nocss] Colo., where Molson Coors Brewing Co. is based."We determined that it would be inconsistent with our balanced governance structure and our goal of creating a truly new company to locate the headquarters of MillerCoors in either Milwaukee or Golden. To do so would wrongly indicate that one of the partners has a controlling interest in the new company," they said on the corporate website.
"We believe both Golden and Milwaukee stand to gain in the MillerCoors deal since our operations in both cities will now be part of a stronger, more competitive player in the U.S. beer business. This will ultimately strengthen our long-term economic and social impact in both of our hometowns and secure the future of brewing in both locations. Both breweries are staying open," they added.
"We will be making a significant investment in updating and enhancing the Milwaukee and Golden breweries. We will also maintain a significant corporate staff in both cities. We will house a number of our senior executives and their teams as well as the bulk of the marketing team in Chicago. We will locate our Eastern Division Headquarters, Great Lakes sales region office and significant parts of our Finance, IT, HR and Operations divisions in Milwaukee. We will locate our Western Division Headquarters, Mountain sales region office and significant parts of our Finance, IT, HR and Operations divisions in Golden," said the executives.
"As a result of the headquarters move, 150-175 positions will be impacted in both Golden and Milwaukee. Additional positions will be impacted as we work to achieve our synergy targets over the next three years," they said.
"The decision to select Chicago as the location for our corporate headquarters was made to achieve our goal of becoming the best beer company in America by having access to an attractive base of talent, transportation and business resources," said Tom Long, president of MillerCoors. "We are grateful to the State of Illinois and City of Chicago for their support."
Mayor Richard M. Daley said, "We are excited that MillerCoors, a company with such a rich history and legacy in the brewing industry, has selected Chicago as the site of its corporate headquarters. The company's decision to locate its headquarters here strengthens our reputation as a world-class city in which to conduct business and confirms that Chicago is a great place to live, work and raise a family."
MillerCoors is finalizing its exact building location within Chicago. The City of Chicago has offered tax increment financing (TIF), dependent on the building selection and City Council approval. In addition, the State of Illinois is offering EDGE tax credit and employer training grants, as well as a business development grant. MillerCoors may also be eligible for additional grants and incentives, pending final building selection.
Illinois provided an $18 million investment package to support MillerCoors, which is making its own $39.5 million investment, Governor Rod Blagojevich said. "This investment will contribute to a stronger regional economy, which will help create new jobs in the state and opportunities for the company to grow in the future," he said.
SABMiller plc and Molson Coors Brewing Co. announced the closing transaction to combine their U.S. and Puerto Rico operations to create MillerCoors on June 30 and began operation as a combined entity on July 1, 2008.
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