Molson Coors Brewing Company

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Molson Coors Brewing Company
Public
Traded as NYSETAP TAP.A
TSXTPX.ATPX.B
S&P 500 Component
Industry Beverages
Founded Molson (1786), Coors (1873), merged (2005)
Headquarters Denver, Colorado, U.S.
Key people
Geoff Molson, (Chairman)
Mark Hunter, (President and CEO)
Products Beers, lagers, malt beverages, energy drinks, spirits and wines
Revenue DecreaseUS$4.8 billion (2016)[1]
DecreaseUS$521.8 million (2015)[2]
DecreaseUS$359.5 million (2015)[3]
Total assets DecreaseUS$12.2 billion (2015)[4]
Total equity DecreaseUS$7.0 billion (2015)[5]
Number of employees
9,100 (2015)[6]
Subsidiaries Molson Brewery
Molson Coors Brewing Co. (UK), Ltd.
MillerCoors
The Beer Store (49%)
Website www.molsoncoors.com

The Molson Coors Brewing Company is a multinational brewing company, formed in 2005 by the merger of Molson of Canada, and Coors of the United States. It is the world's seventh largest brewer by volume.[7]

While the company is incorporated in the United States,[8] it is traded on stock exchanges in both the United States and Canada,[9] and control is equally shared between the Molson and Coors families.[10] The company is headquartered at the 54-story 1,372,179-square-foot (127,479.6 m2)[11] 1801 California Street (CenturyLink Tower) in Denver, Colorado,[12][13] with 67,000-square-foot (6,200 m2) office areas, which are located on the 45th, 46th and part of the 47th floors in the tower.[14]

Molson Coors expanded significantly after the merger of Anheuser-Busch InBev and SABMiller in October 2016. This was achieved because during the plans for the merger, SABMiller had agreed to divest itself of the Miller brands by selling its stake in MillerCoors to Molson Coors.[15]

History[edit]

On 9 October 2007, SABMiller and Molson Coors Brewing Company announced a joint venture to be known as MillerCoors for their U.S. operations that will market all of their products.[16] MillerCoors is headquartered in Chicago, Illinois.

On 2 February 2011, the company purchased Sharp's Brewery of Cornwall in England for around £20 million.

On 26 May 2011, seventh-generation family member Andrew Molson succeeded Pete Coors as acting Chairman of the company.[17]

In early 2012 the company expanded into the Central and Eastern Europe markets by acquiring the region's market-leading brewery StarBev from CVC Capital Partners.[18]

In September 2014, it was revealed in the media that the firm was in talks to acquire Heineken’s operations in the Czech Republic.[19]

Molson Coors 2016 expansion[edit]

During the merger discussions between Anheuser-Busch InBev and SABMiller in 2015, the U.S. Department of Justice (DOJ) had agreed to proposed deal only on the basis that SABMiller "spins off all its MillerCoors holdings in the U.S. — which include both Miller- and Coors-held brands — along with its Miller brands outside the U.S." The entire ownership situation was complicated: "In the United States, Coors is majority owned by MillerCoors (a subsidiary of SABMiller) and minority owned by Molson Coors, though internationally it’s entirely owned by Molson Coors, and Miller is owned by SABMiller."[20]

SABMiller agreed to divest itself of the Miller brands by selling its stake in MillerCoors to Molson Coors. The merger between the two companies closed on October 10, 2016. The spinoff deal was completed on October 11, 2016)[21] As per the agreement with the regulators, SABMiller sold to Molson Coors full ownership of the Miller brand portfolio outside of the U.S. and Puerto Rico for US$12 billion. Molson Coors also retained "the rights to all of the brands currently in the MillerCoors portfolio for the U.S. and Puerto Rico, including Redd’s and import brands such as Peroni, Grolsch and Pilsner Urquell." The agreement made Molson Coors the world's third largest brewer.[22]

In Canada, Molson Coors regained the right to make and market Miller Genuine Draft and Miller Lite.[23]

After SABMiller divested itself of all interests in MillerCoors, then Molson Coors became the largest brewer in the U.S.[24]

Corporate structure[edit]

Molson Coors has a number of divisions and subdivisions.

The Molson Coors Canada division entered the craft beer market with the acquisitions of Creemore Springs Brewery and Granville Island Brewing, to create the Six Pints Specialty Beer Company, a subdivision that first was an umbrella for those brands and aiming to include other Molson-owned and affiliated brands.[25]

Since October 11, 2016, MillerCoors has been the US business division of Molson Coors.[26]

Management team[edit]

As of January 2017, the management consisted of the following:[27]

  • Mark Hunter, President and Chief Executive Officer
  • Brenda Davis, Chief Integration Officer
  • Celso White, Global Chief Supply Chain Officer
  • Frederic Landtmeters, President and Chief Executive Officer, Molson Coors Canada
  • Gavin Hattersley, President and Chief Executive Officer, MillerCoors division
  • Kandy Anand, Chief Growth Officer
  • Tracey Joubert, Global Chief Financial Officer
  • Michelle Nettles, Chief People and Diversity Officer
  • Sam Walker, Global Chief Legal and Corporate
  • Simon Cox, President and Chief Executive Officer, Molson Coors Europe
  • Stewart Glendinning, President and Chief Executive Officer, Molson Coors International

Environmental record[edit]

The Molson Coors Brewing Company conducted a comprehensive, and voluntary investigation of its pollution and environmental emissions. Coors was not violating the Clean Air Act but was encouraged by the Environmental Audit Privilege and Voluntary Disclosure Act which immunizes and credits organizations for conducting environmental self-audits, which can grant immunity from environmental regulation fines.[28]

The United States government had thought that Coors was a minor violator of emissions such as volatile organic compounds (VOCs), but the investigating showed otherwise, revealing that Coors was 17 times over the estimated value of emissions. Molson Coors then provided the audit results to the Colorado Department of Health which culminated in a $1.05 million fine for the 189 violations of state pollution laws.[29]

Although Molson Coors said they did not know about volatile organic compounds they were emitting, they do claim to be environmentally aware. Coors invented a new printing technology technique which uses ultra-violet light to cure the print, a technique which the company claims is more environmentally sound than the traditional gas firing technique.[30]

Notes[edit]

  1. ^ https://finance.yahoo.com/quote/TAP/financials?p=TAP
  2. ^ https://finance.yahoo.com/quote/TAP/financials?p=TAP
  3. ^ https://finance.yahoo.com/quote/TAP/financials?p=TAP
  4. ^ https://finance.yahoo.com/quote/TAP/financials?p=TAP
  5. ^ https://finance.yahoo.com/quote/TAP/financials?p=TAP
  6. ^ http://d1lge852tjjqow.cloudfront.net/CIK-0000024545/e890f472-b92e-45e7-9886-13a78a86d4d1.pdf
  7. ^ Turner, Robin. "Welsh brewer Peter Swinburn leads Molson Coors' 'risky' $US3.5bn acquisition" WalesOnline (June 7, 2012)
  8. ^ MolsonCoors 2008 SEC 1O-K filing
  9. ^ The company that trades on the Toronto Stock Exchange, Molson Coors Canada Inc., entitles its shareholders economic and voting interests of the US-incorporated Molson Coors Brewing Company equivalent to MCBC shareholders on the New York Stock Exchange. MolsonCoors 2008 SEC 1O-K filing
  10. ^ Molson Coors ownership structure
  11. ^ "https://www.credifi.com/ui/freemium/propertydetails/Centurylink%20Tower/55ee162dfbffa90ae4a45068/1801%20California%20St". CrediFi. Retrieved 19 September 2016.  External link in |title= (help)
  12. ^ The New York Times (Molson Coors Brewing Company, Company Information)
  13. ^ CNN Money (Molson Coors Brewing Co)
  14. ^ [1] Office Snapshots – Molson Coors North American Headquarters
  15. ^ Brown, Lisa (October 11, 2016). "A-B InBev finalizes $100B billion acquisition of SABMiller, creating world's largest beer company". Chicago Tribune. Chicago. Retrieved January 29, 2017. 
  16. ^ "Business, financial, personal finance news". CNN. 
  17. ^ Pankratz, Howard (26 May 2011). "Andrew Molson succeeds Peter H. Coors as Molson Coors chairman". Denver Post. 
  18. ^ "StarBev Sale Brings Cheer To CVC" on InvestIQ
  19. ^ Heineken in talks to sell Czech operations to Molson Coors. Reuters, 9 September 2014
  20. ^ Nurin, Tara (July 20, 2016). "DOJ Approves Largest Beer Merger In Global History, With Significant Conditions". Forbes. Forbes. Retrieved January 29, 2017. 
  21. ^ Brown, Lisa (October 11, 2016). "A-B InBev finalizes $100B billion acquisition of SABMiller, creating world's largest beer company". Chicago Tribune. Chicago. Retrieved January 29, 2017. 
  22. ^ "Molson Coors Completes Acquisition of Full Ownership of MillerCoors and Global Miller Brand Portfolio". MolsonCoors.com. October 11, 2016. Retrieved January 29, 2017. Becomes World’s Third Largest Brewer by Enterprise Value and Strengthens Position in Highly Attractive U.S. Beer Market 
  23. ^ Wright, Lisa (November 11, 2015). "Molson Coors doubles with $12B Miller buyout". Toronto Star. Toronto. Retrieved January 29, 2017. 
  24. ^ Dill, Molly (10 October 2016). "Anheuser-Busch to complete acquisition of SABMiller today". BizTimes. BizTimes Media LLC. Retrieved 31 January 2017. 
  25. ^ http://www.canadianbeernews.com/2011/05/31/molson-launches-six-pints-specialty-beer-company/
  26. ^ Brown, Lisa (October 11, 2016). "A-B InBev finalizes $100B billion acquisition of SABMiller, creating world's largest beer company". Chicago Tribune. Chicago. Retrieved January 29, 2017. 
  27. ^ "Leadership". MolsonCoors.com. 2017. Retrieved January 31, 2017. 
  28. ^ Carlisle, John K. "Norton's record bodes well for innovative new approach to environmental protection at Interior" on Enter Stage Right (April 30, 2008)
  29. ^ Reason.org Environmental Enforcement: In Search of Both Effectiveness and Fairness by Alexander Volokh and Roger Marzulla August 1996 retrieved 30 April 2008
  30. ^ Hunter, Carl. "Technology infiltrates the beverage industry" The Winonan (April 9, 2008) retrieved 30 April 2008

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