CHICAGO -- In the pending merger of beer-brewing giants Anheuser-Busch InBev and SABMiller, perhaps the biggest outstanding question in the United States is: What will become of MillerCoors, the 9-year-old partnership between Molson Coors Brewing Co. and SABMiller.
Last we heard, Molson Coors was in line to buy out SABMiller's 58% share of the venture for $12 billion, part of AB InBev's effort to ward off regulatory concerns about owning too much of any one beer market. And MillerCoors will take ownership of all Miller beer brands in the United States.
But other questions remained: Would Molson Coors maintain the MillerCoors name? And would it keep MillerCoors' headquarters in Chicago, something of a compromise between Miller Brewing's home in Milwaukee and Coors' longtime connection with Golden, Colo.? Could a move to Colorado or even Molson's HQ in Montreal be in the cards?
Those questions were answered this week by CEO Gavin Hattersley, who has led the company since May 2015.
"Planning for our integration with Molson Coors is well underway," Hattersley said March 17 in a memo to employees.
The memo, shared with CSP Daily News, went on to announce that the integrated company will maintain the MillerCoors name.
"The name reflects our proud heritage here in the U.S. and has strong recognition and brand equity with our customers," Hattersley said. "As such, we will be 'MillerCoors, a Molson Coors company.' This is consistent with other Molson Coors businesses, where they lead with the established brand name in that market."
Hattersley also announced that MillerCoors will maintain its home in Chicago "based on a thorough cost and benefits analysis," while parent Molson Coors remains in Colorado.
About 450 people are employed in MillerCoors' 167,000-square-foot office in Chicago, according to a Chicago Tribune report. The company signed a 15-year lease for the space in 2008, the company said.
"We remain confident we will achieve the synergy targets we announced in November, largely from opportunities within our combined procurement, supply chain and shared services operations," Hattersley said in the memo. "In the meantime, it’s critical that we all stay fully focused on delivering our 2016 plan. That’s job No. 1."
Assuming all transactions between AB InBev, SABMiller and Molson Coors are approved by federal regulators, Molson Coors will be the No. 2 brewer in the United States with 27% market share and ownership of two of the four largest beer brands: Coors Light and Miller Light.
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