Coors closes brewery
Molson Coors Brewing Co. announced at the end of February that it will shut its Memphis brewery in early 2007 axing 410 jobs. Production will gradually be phased out, starting in the second half of 2005. The closure is part of a wider restructuring plan that targets annual savings of USD 175 million within three years.
Molson Coors will spend USD 70 million to USD 90 million to shift production, reflecting capital expenditures at its other North American breweries, along with restructuring and other costs.
The company’s breweries are said to operate at about 79 percent capacity utilization, while its rivals have theirs running in the low 90 percent range. Anheuser-Busch has 12 breweries in the U.S., SABMiller six. It was originally built by the Stroh Brewery Co..
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