Molson Merger Starts to Pay Off

Article Excerpt

Beer sales have slowed down in the past decade, as many baby boomers drink less as they get older. Many boomers are also switching to premium wines and spirits. This has led to a consolidation trend in the brewing industry. Bigger breweries can afford to spend more on advertising to improve their market share. Their size also makes it easier for them to cut costs, and pass along higher commodity and packaging prices to customers. The merger of Molson and Coors two years ago gave both companies the size they needed to survive. Now that the merged company has finished the bulk of its restructuring, it is beginning to realize the benefits of the merger. MOLSON COORS CANADA INC. (Toronto symbols TPX.A $78 and TPX.B $81; Conservative Growth Portfolio, Consumer sector; SI Rating: Average) is a wholly owned subsidiary of Molson Coors Brewing Company (New York symbol TAP), which was formed in February 2005 through the merger of Molson Inc. and Adolph Coors…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.