Molson Coors expects USD 250 million savings by the end of 2009

Molson Coors Brewing said in March that cutting costs will save it about a quarter of a billion dollars over the next two years. The money will be spent on improving its brands.

About time, too, many of you will say. Bikini-clad girls may be considered the height of fashion on America’s beaches. But when it comes to beer advertising, consumers may perhaps expect a bit more inspiration than perspiration.

Investors have been expecting a bit more from Molson Coors too – although, they cannot be too disappointed. Since the cost-cutting announcement, Molson Coors’ share price has risen from USD 80 per share to more than USD 90 (at the end of March 2007).

The brewer said it would save about USD 175 million in global supply chain costs, and USD 75 million in overhead expenses and other projects.

As part of these cost cuts, Molson Coors said it had cut about 100 jobs at its Molson Canada operations, saving it USD 11 million. A modest stock buy-back may also be in the offing, it was reported.