Molson Coors, the North American brewer, is expecting regulatory approval for the merger of its US operations with SABMiller in the next few weeks.
The merger was agreed by the two brewers last year in a bid to act as a stronger competitor to Anheuser-Busch, the current US market leader.
Profitability
Chief Executive of Molson Coors, Leo Kiely is in London to discuss merger plans with SABMiller.
The two brewers are going ahead with the merger in order to improve profitability. Anheuser-Busch has profit margins of nearly 17 percent and controls half the US beer market.
They are also expected to build sales of upmarket niche brands such as Peroni Nastro Azzuro and Pilsner Urquell when the merger is approved.
Molson Coors is capitalizing on demand for specialist beers and last year created a subsidiary, AC Golden, to develop more craft beers.
MillerCoors will hope to prioritise low-alcohol beers, sales of which have been rising over the last 12 months, as the brewer increased its low alcohol brands by more than seven percent.
MillerCoors will also want to bring more of SABMiller’s 150 beer brands to the US, and revive its presence in the UK market.
May 22, 2008