Miller, Molson and Coors Plan Joint Venture

As the mass-market beer companies are challenged with slower growth and shifting consumer tastes, two of the larger ones have decided to join forces. The makers of Miller, Molson and Coors have announced a joint venture, to be called MillerCoors.

ABMiller PLC and Molson Coors Brewing Co. said they plan to combine their U.S. operations, creating an entity that The Wall Street Journal says could threaten the decades-long dominance of Anheuser-Busch as the leading beer company in the U.S.

The combination would bring together Miller Brewing Co., the second-largest U.S. brewer by sales with about 20% market share and Coors Brewing co., the No. 3 player with about 11% market share. Anheuser-Busch controls nearly half the U.S. beer market.

All of these guys have been losing market share to wine and spirits companies, and small-batch "craft" brewers.

Here are the two company chief executives quoted in the WSJ:
"This transaction is driven by the profound changes in the U.S. alcohol beverage industry that are confronting both of our companies with new challenges," said Pete Coors, Vice Chairman of Molson Coors.

"As a result of this combination, Miller and Coors will be able to provide more focused support for our flagship brands, while taking full advantage of consumers' demand for imported and craft brands and innovative products," said Molson Coors Chief Executive Leo Kiely.

Mr. Coors will serve as chairman of the venture, while Mr. Kiely will be CEO.