They've become allies in the Beer Wars.
DENVER -- Brewers Molson Coors Brewing Co. and SABMiller PLC said Tuesday they will combine their U.S. operations in a joint venture.
The makers of Miller Lite, Original Coors and Coors Light said they will share ownership equally in the new venture which they said should help them compete more effectively.
The industry leader in the United States is Anheuser-Busch Cos., maker of Budweiser, Michelob and Bud Light.
The financial terms of the deal were not disclosed.
The new company will be called MillerCoors, the companies said. London-based SABMiller, which brews Miller Lite as well as a slew of European beers, and Molson Coors, the brewer of Coors Light and the craft beer Blue Moon, will each have a 50 percent voting interest in the venture and have five representatives on its board of directors.
Under the terms of the agreement, the companies said they will conduct all of their U.S. business exclusively through the venture.
The companies project MillerCoors will have combined annual beer sales of 69 million U.S. barrels with revenue of about $6.6 billion.
It takes some getting used to when competitors become partners.
From the Wall Street Journal:
Coors and Miller both have long histories in the U.S. Miller began brewing in Milwaukee in 1855, while Coors was founded in Golden, Colo, in 1873. The two companies have historically been competitors, both brewing popular, mid-priced American-style lagers.
Those long histories are becoming history.
I foresee a time when Anheuser-Busch Cos. and MillerCoors will merge, taken over by Chinese interests. The product will be sold exclusively at Wal-Mart.
Of course, the beer will be plagued by recalls because of its dangerously high lead levels.
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Read more.
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Read Miller's news release.
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