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Am I still Canadian? Molson in merger with Coors

The Story

Karen Molson, a historian who also happens to be a direct descendant of John Molson, says this is a sad day in Molson history. Canadian beer giant Molson Inc. and American beer leader Coors have announced they will be joining forces to create the fifth largest brewer in the world. The almost $8-billion deal has everyone talking, according to this clip from The National. Karen Molson thinks it means a loss of the longstanding Canadian company's independence.Beer industry analyst Michael Palmer, on the other hand, believes the merger may actually help Molson keep some independence. Only time will tell the real outcome of this merger.

Medium: Television
Program: The National
Broadcast Date: July 22, 2004
Guest(s): Peter Coors, Guylain Larose, Eric Molson, Karen Molson, Michael Palmer
Reporter: Michel Godbout
Duration: 2:56

Did You know?

• Prior to the merger announcement, Molson and Coors already had a joint venture - for several years before, Molson had been brewing, distributing and selling Coors products in Canada, and Coors had been distributing and selling Molson products in the United States. Because the two companies had already been working closely together, many industry analysts said they didn't think the merger would really provide a huge cost savings for either company.

• A Globe and Mail article stated shortly after the merger was announced, "A merger would do little to solve their biggest problem: how to find a path to stable, long-term growth in a hotly competitive marketplace. Some observers see the deal as an attempt by the two family-controlled companies to remain out of the clutches of more powerful players at a time of rapid international consolidation."

• The beer market in 2004 was extremely competitive. Overall beer sales had remained flat in the previous few years. At the same time, breweries around the world had been consolidating through a number of international mergers and partnerships, and the increasingly global beer market was being flooded with a variety of international beers.

• Although they announced plans to merge in 2004, Molson and Coors still had to get approval from investors before it could become official.
• The merger became official in February of 2005. The merged company became known as the Molson Coors Brewing Company.

• The executive offices of Molson Coors are now located in both Montreal and Colorado, while the Canadian operational headquarters (still known as Molson Canada) is in Toronto and the American operational headquarters (known as Coors Brewing Company) is in Golden, Colo. There is also a U.K headquarters located in Burton-on-Trent.

• Molson, founded in 1786, is Canada's oldest existing brewery and the second-oldest company in Canada. Canada's oldest company is the Hudson's Bay Company, incorporated in 1670.



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