Profile: Molson Coors Brewing Co (TAP)
10 Dec 2013
Molson Coors Brewing Company (MCBC), incorporated on August 14, 2003, is a holding company. The Company operates in five business segments: Canada, the U.S., Central Europe, the U.K., and MCI. The Company a brewer and has a portfolio of owned and partner brands, including signature brands Coors Light, Molson Canadian, Carling and Staropramen, as well as craft and specialty beers such as Blue Moon, Creemore Springs, Cobra and Doom Bar. Its other subsidiaries include: Molson Coors Canada (MCC), operating in Canada; MillerCoors LLC (MillerCoors), which is accounted for by the Company under the equity method of accounting, operating in the United States (U.S.); Molson Coors Brewing Company (UK) Limited (MCBC-UK, operating in the United Kingdom (U.K.) and the Republic of Ireland; Molson Coors International (MCI) operating in various other countries; and its other non-operating subsidiaries. In June 15, 2012, the Company acquired StarBev. In January 2013, the Company acquired Ireland's Franciscan Well brewery.
Brands sold in Canada include Coors Light, Molson Canadian, Molson Export, Molson Canadian 67, Molson Dry, Molson M, Rickard's Red, Rickard's Blonde and other Rickard's brands, Carling, Carling Black Label, Pilsner, Keystone, Creemore Springs, the Granville Island brands, Caffrey's, Cobra, and a number of other regional brands. It also brews or distributes under license the brands, including Heineken, Amstel Light, and Murphy's under license from Heineken N.V. (Heineken), Asahi and Asahi Select under license from Asahi Breweries, Ltd., Miller Lite, Miller Genuine Draft, Miller Chill, Milwaukee's Best, and Milwaukee's Best Dry under license from SABMiller, and Foster's under license from Foster's Group Limited (Fosters). The Company is also a party to a joint venture with Grupo Modelo S.A.B. de C.V. (Modelo), which imports, distributes and markets the Modelo beer brand portfolio, including the Corona, Coronita, Negra Modelo, and Pacifico brands, across all Canadian provinces and territories. The Canada segment also includes its partnership arrangements related to the distribution of beer in Ontario, Brewers' Retail Inc. (BRI), and in the Western provinces, Brewers' Distributor Ltd. (BDL).
United States Segment
The percentage interests in the profits of MillerCoors are 58% for SABMiller and 42% for MCBC. The United States segment consists of its interest, and results from its interest, in MillerCoors, its joint venture with SABMiller plc (SABMiller) for all U.S. operations. MillerCoors produces markets and sells beer brands in the United States. and Puerto Rico. Its brands include Coors Light, Miller Lite, Miller High Life, Keystone Light, Blue Moon, Leinenkugel's, Coors Banquet and Miller Genuine Draft. consists of its interest, and results from its interest, in MillerCoors, its joint venture with SABMiller plc (SABMiller) for all U.S. operations. MillerCoors produces markets and sells beer brands in the U.S. and Puerto Rico. Its brands include Coors Light, Miller Lite, Miller High Life, Keystone Light, Blue Moon, Leinenkugel's, Coors Banquet and Miller Genuine Draft.
United Kingdom Segment
The Company sales are primarily in England and Wales, with Carling representing approximately 75% of its total United Kingdom segment beer volume. The United Kingdom segment consists of its production and sale of the MCBC brands in the United Kingdom. and the Republic of Ireland, its joint venture arrangement for the production and distribution of Grolsch brands in the United Kingdom and the Republic of Ireland, its joint venture arrangement for the production and distribution of the Cobra brands in the United Kingdom and the Republic of Ireland, factored brand sales (beverage brands owned by other companies, but sold and delivered to retail by the Company), and its Tradeteam joint venture arrangement with DHL for the distribution of products throughout the United Kingdom. Additionally, it distributes the Modelo brands, including Corona, pursuant to a distribution agreement with Modelo.
The Company’s Brands sold in the United Kingdom and Ireland include: Carling, Carling Zest, Coors Light, Worthington's, White Shield, Red Shield, Caffrey's, Sharp's Doom Bar, and Blue Moon, as well as a number of smaller regional ale brands. The Company also sells the Grolsch brands through a joint venture with Royal Grolsch N.V. and the Cobra brands through a joint venture called Cobra Beer Partnership Ltd., and is the exclusive distributor for several brands which are sold under license, including Corona, Coronita, Negra Modelo, Pacifico, and Singha.
Central Europe Segment
The Central Europe Segment majority of sales are in Czech Republic, Serbia, Romania, Bulgaria, Croatia and Hungary. Its portfolio includes beers that have the share in their respective countries, such as Jelen in Serbia and Ozujsko in Croatia. The Company has beers that rank in the top four in market share in countries throughout the region, including Staropramen, Bergenbier, Kamenitza and Borsodi. The Company also brews and distributes Stella Artois, Beck's, Lowenbrau and Spaten under license agreements with ABI companies.
The Company’s Brands sold in Central Europe include Staropramen, Branik, Ostravar, Ozujsko, Borsodi, Kamenitza, Astika, Jelen, Niksicko, Bergenbier, Noroc and Apatinsko as well as other regional brands. The Central European business has licensing agreements with various other brewers through which it also brews or distributes the Stella Artois, Hoegaarden, Leffe, Beck's, Lowenbrau, Spaten, Lowenweisse and Belle-Vue Kriek brands in certain central European countries.
Molson Coors International Segment
The MCI Asia region is primarily composed of businesses in India, Japan and China. its joint venture in India gives the Company a 51% share and operational control of Molson Coors Cobra India (MC Cobra India). MC Cobra India produces, sells and markets a beer portfolio consisting of King Cobra, Cobra and Iceberg's 9000. The Company has its business in Asia, continental Europe, Mexico, Latin America and the Caribbean. The Japan business is focused on the Zima, Coors Light and Modelo brands. Its China business is focused on growing Coors Light and other brands. During the 2012, the Company deconsolidated its 51% ownership in its joint venture in China, Molson Coors Si'hai (MC Si'hai), from its financial statements due to a loss of its ability to control the joint venture. Its business within continental Europe is focused on growing Carling, Coors Light and Cobra. These products are brewed by and exported from its United Kingdom breweries to portions of continental Europe. Coors Light is sold in Mexico through an exclusive licensing agreement with Heineken. In the Caribbean and Latin America, its products are produced under a brewing agreement with MillerCoors and are exported to and sold through agreements with independent distributors.
The Company competes with SABMiller, Heineken, and Carlsberg Group (Carlsberg).
Molson Coors Brewing Co
Suite 3200, 1225 17th Street
DENVER CO 80202