Spring Break
Miller, Coors brew up joint venture to take on Bud
Tom Daykin, Joel Dresang
Issue date: 10/12/07 Section: News
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MILWAUKEE - Miller Brewing Co. and Coors Brewing Co., the nation's second- and third-largest brewers, are combining their operations, creating a bigger challenger to Anheuser-Busch Cos. - but also raising the possibility of future job cuts.
For now, long-time Coors executive Leo Kiely will be running the newly merged operations of Miller Brewing and Coors Brewing. But Miller President Tom Long is Kiely's heir apparent, and Miller owner SABMiller Plc will be picking MillerCoors' chief when Kiely retires - perhaps within a few years.
Those facts emerged from Tuesday morning's web cast presentation to analysts about the agreement to combine Miller and Coors.
A decision hasn't been made yet on where the MillerCoors headquarters will be located once the merger is completed in 2008. None of Miller's six breweries, or the two breweries operated by Coors, will be closed as the result of the merger, said Pete Marino, Miller spokesman.
But administrative jobs in Milwaukee and at the Coors offices in Golden, Colo., will be analyzed as the merged company looks to reduce costs, he said.
"It's safe to assume there will be some reductions," Marino said, adding that it's too early to estimate the extent of those job cuts and where they will occur. MillerCoors will maintain a presence in both Milwaukee and Golden, Marino said.
Miller has 1,700 employees in Milwaukee, with 800 employees in the corporate offices and 900 brewery workers.
Kiely, president and chief executive officer of Molson Coors Brewing Co., which owns Coors Brewing, will be the chief executive officer of MillerCoors. Long, president and chief executive of Miller, will be president and chief commercial officer of the merged company.
Kiely played the biggest role in today's presentation on the merger. He also was in charge of taking questions from financial analysts.
One analyst asked Kiely, who turns 61 in January, how long he would remain at the helm of MillerCoors. Kiely said he is committed to serving in that position for at least two years.
For now, long-time Coors executive Leo Kiely will be running the newly merged operations of Miller Brewing and Coors Brewing. But Miller President Tom Long is Kiely's heir apparent, and Miller owner SABMiller Plc will be picking MillerCoors' chief when Kiely retires - perhaps within a few years.
Those facts emerged from Tuesday morning's web cast presentation to analysts about the agreement to combine Miller and Coors.
A decision hasn't been made yet on where the MillerCoors headquarters will be located once the merger is completed in 2008. None of Miller's six breweries, or the two breweries operated by Coors, will be closed as the result of the merger, said Pete Marino, Miller spokesman.
But administrative jobs in Milwaukee and at the Coors offices in Golden, Colo., will be analyzed as the merged company looks to reduce costs, he said.
"It's safe to assume there will be some reductions," Marino said, adding that it's too early to estimate the extent of those job cuts and where they will occur. MillerCoors will maintain a presence in both Milwaukee and Golden, Marino said.
Miller has 1,700 employees in Milwaukee, with 800 employees in the corporate offices and 900 brewery workers.
Kiely, president and chief executive officer of Molson Coors Brewing Co., which owns Coors Brewing, will be the chief executive officer of MillerCoors. Long, president and chief executive of Miller, will be president and chief commercial officer of the merged company.
Kiely played the biggest role in today's presentation on the merger. He also was in charge of taking questions from financial analysts.
One analyst asked Kiely, who turns 61 in January, how long he would remain at the helm of MillerCoors. Kiely said he is committed to serving in that position for at least two years.
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