Molson Coors Brewing Company

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Molson Coors Brewing Company
Public
Traded as
IndustryBeverages
FoundedMolson (1786), Coors (1873), merged (2005)
HeadquartersDenver, Colorado, U.S.
Key people
Pete Coors, (Chairman)
Geoff Molson, (Vice chairman)
Mark Hunter, (President and CEO)
ProductsBeers, lagers, malt beverages, energy drinks, spirits and wines
RevenueDecreaseUS$4.8 billion (2016)[1]
DecreaseUS$521.8 million (2015)[1]
DecreaseUS$359.5 million (2015)[1]
Total assetsDecreaseUS$12.2 billion (2015)[1]
Total equityDecreaseUS$7.0 billion (2015)[1]
Number of employees
17,200 (2017)[2]
SubsidiariesMolson Brewery
Coors Brewing Company
Miller Brewing Company
The Beer Store (49%)
WebsiteMolsonCoors.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.[3]

While the company is incorporated in the United States,[4] it is traded on stock exchanges in both the United States and Canada,[5] and control is equally shared between the Molson and Coors families.[6] The company is headquartered at 1801 California Street, a 1,372,179-square-foot (127,479.6 m2), 53-story building formerly known as the Transamerica Tower in Denver. It occupies 67,000-square-foot (6,200 m2) of space located on the 45th, 46th and part of the 47th floors of the structure.[7][8]

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.[9]

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.[10] MillerCoors is headquartered in Chicago.

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.[11]

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.[12]

In September 2014, it was revealed in the media that the firm was in talks to acquire Heineken’s operations in the Czech Republic.[13]

The company launched two e-commerce platforms for Blue Moon and Coors Light in 2019. The brand pages were the company's first purchased-enabled platforms.[14]

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."[15]

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.[9] 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.[16]

In Canada, Molson Coors regained the right to make and market Miller Genuine Draft and Miller Lite.[17]

After SABMiller divested itself of all interests in MillerCoors, then Molson Coors became the largest brewer in the U.S.[18]


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.[19]

Since October 11, 2016, MillerCoors has been the US business division of Molson Coors.[20]

Management team[edit]

As of January 2017, the management consisted of the following:[21]

  • Mark Hunter, president and chief executive officer (until 27 September 2019)[22]
  • 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 ("as of" 28 September 2019)[22]
  • 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.[23]

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.[24]

Although Molson Coors said they did not know about the 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.[25]

In an in-depth analysis of the climate change "countermovement," the Coors Affiliated Foundation was listed among the top donors, having funded roughly 1% ($6.2 million USD) of all climate denial research conducted between 2003-2010.[26]

Notes[edit]

  1. ^ a b c d e "TAP Income Statement - Molson Coors Brewing Company Cl Stock". Yahoo! Finance.
  2. ^ "Molson Coors Brewing". Fortune. Retrieved 2018-11-25.
  3. ^ Turner, Robin (7 June 2012). "Welsh brewer Peter Swinburn leads Molson Coors' 'risky' $US3.5bn acquisition". Western Mail. Wales.
  4. ^ "MolsonCoors 2008 SEC 1O-K filing". Securities and Exchange Commission. 13 February 2009. Retrieved 4 June 2019.
  5. ^ 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
  6. ^ "Ownership Structure". Molson Coors. Archived from the original on 2009-03-09.
  7. ^ Armbrister, Molly (18 December 2014). "Molson Coors relocating headquarters to 1801 California in downtown Denver". Denver Business Journal. Retrieved 4 June 2019.
  8. ^ "Molson Coors North American Headquarters". Office Snapshots. Retrieved 4 June 2019.
  9. ^ a b Brown, Lisa (October 11, 2016). "A-B InBev finalizes $100B billion acquisition of SABMiller, creating world's largest beer company". Chicago Tribune. Retrieved 29 January 2017.
  10. ^ "Business, financial, personal finance news". CNN. Archived from the original on 2007-11-03.
  11. ^ Pankratz, Howard (26 May 2011). "Andrew Molson succeeds Peter H. Coors as Molson Coors chairman". The Denver Post.
  12. ^ "StarBev Sale Brings Cheer To CVC". InvestIQ. 9 April 2012. Archived from the original on 26 August 2012.
  13. ^ Heineken in talks to sell Czech operations to Molson Coors. Reuters, 9 September 2014
  14. ^ Bhattacharyya, Suman (1 April 2019). "Even Molson Coors is hatching a direct-to-consumer strategy". Digiday. Retrieved 2019-04-12.
  15. ^ Nurin, Tara (July 20, 2016). "DOJ Approves Largest Beer Merger In Global History, With Significant Conditions". Forbes. Retrieved January 29, 2017.
  16. ^ "Molson Coors Completes Acquisition of Full Ownership of MillerCoors and Global Miller Brand Portfolio" (Press release). Molson Coors. 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
  17. ^ Wright, Lisa (November 11, 2015). "Molson Coors doubles with $12B Miller buyout". Toronto Star. Retrieved January 29, 2017.
  18. ^ Dill, Molly (10 October 2016). "Anheuser-Busch to complete acquisition of SABMiller today". Milwaukee Business News. Retrieved 31 January 2017.
  19. ^ "Molson Launches Six Pints Specialty Beer Company". Canadian Beer News. 31 May 2011. Retrieved 4 June 2019.
  20. ^ Brown, Lisa (October 11, 2016). "A-B InBev finalizes $100B billion acquisition of SABMiller, creating world's largest beer company". Chicago Tribune. Retrieved January 29, 2017.
  21. ^ "Leadership". Molson Coors. 2017. Retrieved January 31, 2017.
  22. ^ a b "Molson Coors CEO Mark Hunter Announces Retirement as of September 27, 2019; Board Names MillerCoors CEO Gavin Hattersley as Successor". Financial Post (Press release). July 31, 2019. Retrieved July 31, 2019.
  23. ^ Carlisle, John K. "Norton's record bodes well for innovative new approach to environmental protection at Interior" on Enter Stage Right (April 30, 2008)
  24. ^ Reason.org Archived 2008-05-21 at the Wayback Machine Environmental Enforcement: In Search of Both Effectiveness and Fairness by Alexander Volokh and Roger Marzulla August 1996 retrieved 30 April 2008
  25. ^ Hunter, Carl. "Technology infiltrates the beverage industry" The Winonan (April 9, 2008) retrieved 30 April 2008
  26. ^ Burlle, Robert J. (2014). "Institutionalizing delay: foundation funding and the creation of U.S. climate change counter-movement organizations". Climatic Change. 122 (4): 681–694. doi:10.1007/s10584-013-1018-7.

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