Merger savings help Molson compete

Article Excerpt

MOLSON COORS CANADA INC. (Toronto symbols TPX.A $47 and TPX.B $47; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 185 million; Market cap: $8.7 billion; Price-to-sales ratio: 2.9; Dividend yield: 2.1%; SI Rating: Average) is the world’s fifth-largest brewer by volume. Its major brands include Coors Light, Molson Canadian and Carling. The company gets 40% of its sales from Canada, followed by the U.S. (32%) and the U.K. (28%). In other markets, Molson Coors either licenses its brands to local brewers, or exports its beer directly. The company continues to enjoy the benefits of the February 2005 merger of Canadian brewer Molson Inc. and U.S.-based Adolph Coors Co. Canadian shareholders received exchangeable shares in Molson Coors Canada. The Canadian shares carry the same voting and dividend rights as common shares of the U.S. parent company, Molson Coors Brewing Co. (New York symbol TAP). Lower costs continue to fuel profits The merger let Molson Coors close plants and combine distribution networks. That increased its profits…