Molson Inc. announced at the beginning of February this year that it had received the final court approval for its USD4 billion merger with Adolph Coors Co., after both sets of shareholders voted overwhelmingly in favour of the union.
The merger will create the world’s fifth largest brewer by volume behind Heineken with annual sales of more than USD6 billion. The new company, to be called Molson Coors Brewing Co., will have a 43 percent market share in Canada and 11 percent in the United States, with brands such as Molson Canadian and Coors Light.
On the announcement, shares of Molson rose 7 Canadian cents to CD38.77 on the Toronto Stock Exchange. On the New York Stock Exchange, Coors’ shares fell 11 cents to USD74.90. Well, thanks for that gentlemen.44 a share, up from CD3.26..

In Latin America few men are richer than the patriarch Julio Mario Santo Domingo, 80, Colombia’s top businessman whose net worth the Forbes Magazine estimated to be USD1.4 billion in 2004. On the Forbes list of the world’s richest men he ranked 406. Not bad, ey? Santo Domingo may not only be one of the wealthiest persons alive, he is also one of the most sought after. Through his majority stake of Grupo Empresarial Bavaria, Latin America’s number two brewer, and holding company Grupo Empresarial Valores Bavaria he controls more than 100 companies in a variety of industries from beverages to newspapers, crude oil production and temporary staffing. It is hard to believe that in our dangerous times Santo Domingo is said to be a familiar figure in the international jet set. Says Forbes..

Holiday meal replacement

Yuk. We dread to think what it could taste like. But one thing is certain. It could only happen in the U.S.. Jones Soda Co., located in Seattle, announced that it has released a limited edition holiday pack of five new seasonal flavours: Green Bean Casserole Soda, Mashed Potato & Butter Soda, Fruitcake Soda, Cranberry Soda and Turkey & Gravy Soda. The idea was to cut down on the time spent eating to leave consumers with more time to spend with their loved ones. Let’s hope they meant this as a joke. The limited edition holiday pack was available in stores through the Jones Soda distributor network and selected Target stores during the week of 8 November. Each pack of five bottles retailed at USD15.95.

Mr Smith does not go to Washington

At least he was spared Mr Smith’s experience. In Frank Capra’s Hollywood classic Mr Smith goes to Washington of 1939, Mr Smith (played by James Stewart) is appointed to fill a vacancy in the U.S. Senate. His idealism promptly collides with what is called "realpolitik", but he doesn’t back down.
Pete Coors was supposed to be golden. But in the end, the Republican brewer’s image was tarnished by a punishing series of what are called "attack ads" which linked him to implied problems with his company. In his bid for U.S. Senate, Pete Coors (47 percent) lost to Democrat Ken Salazar (50 percent). Many had thought that the 58-year-old political novice was the one candidate well-known enough and rich enough to beat the popular attorney general who has years of political experience..

Botched up

What a protracted deal: Adolph Coors Co. announced in November that it had agreed to pay CAD381 million (USD316 million) to Molson Inc.’s shareholders, sweetening its bid for its Canadian rival before a key shareholder vote on the deal. "The decision was made, clearly, in an effort to encourage Molson shareholders to approve the deal", Molson spokeswoman Sylvia Morin was quoted as saying. The payment adds a cash dividend that was not part of the original all-stock agreement. It will be remembered that the deal had been billed by the companies as a "merger of equals". Morin said Molson and Coors managements made the decision on the special dividend after holding meetings with shareholders and determining something had to be done to get them to view the deal in a positive light.

Molson to build new brewery

Molson will build a CAD35 million brewery in Moncton, in the eastern province of New Brunswick. Montreal-based Molson, which plans to merge with U.S.-brew-er Coors, explained that the project will allow it to compete more effectively in the region and cut costs. The brewery is expected to be completed by 2007 and will give Molson local brewer status, which means it will have the ability to operate warehouses and have a distribution system in the region.
The new brewery will feature bottling and keg lines and its capacity will be more than 250,000 hl annually. When fully operational, the facility will produce several of Molson’s core brands such as Canadian and Coors Light for the regional market. It will also support Molson’s long-term strategy to expand its export business..

No hangover cure

Sometimes it’s raw oysters that do the trick or several Bloody Maries. But sadly, none of this works for Molson, whose Brazilian hangover shows no signs of abating. Reporting its second quarter results in October, Molson announced a CAD 210 million write-down on its Kaiser business and the shut-down of a brewery in Rio de Janeiro which will incur restructuring costs of about CAD50 million. In Brazil, total market share fell to 10.6 percent from 13.1 per cent last year. Total sales volume fell 9.6 per cent, while net sales of beer also fell.

Not spoilt for choice

Crusta Fruit Juices is set to join Asia-Pacific soft-drink group Coca-Cola Amatil. It was reportedly sold for between AUD25 million and AUD30 million. Crusta is Australia’s third-largest fresh juice brand with annual sales in excess of AUD20 million. A bid by Coca-Cola Amatil for fruit juice company Berri earlier this year was thwarted by the national competition watchdogs. The Australian Competition and Consumer Commission have since given the green light to Filipino beverage giant San Miguel Corp’s acquisition of Berri.

Don’t cry for me Argentina

True, the song has been over-used. But the owner of Germany’s Warsteiner brewery, Albert Cramer, has every reason to whistle the tune each time they play it on the radio. After all, ten year’s into his investment in Argentina, he can look back and say, whatever happened, "the truth is I never left you". Three years ago we at Brauwelt were amazed how nonchalantly the then Managing Director of Warsteiner let it be known at a high-powered meeting of brewers from around the world that War-steiner’s brewery in Argentina, Isenbeck, was up for grabs. "Got a brewery there. You interested?" Well, the man is no more. That’s why in November, on the tenth anniversary of the Isenbeck brewery in Buenos Aires there were smiling faces all around. So much for Argentina’s politics. Ho.

To BE or not to BE ..

.. that is the question, especially since Anheuser-Busch has claimed that its new brew by the name of BE. would take beer to a new level. Actually, it does take the E to a higher level - whatever the significance. Apparently frustrated by the success drinks companies have enjoyed with their flavoured drinks, Anheuser-Busch decided to launch its own brew under the Budweiser label which will be infused with caffeine, guarana and ginseng. Anheuser-Busch’s marketers describe BE as "well balanced with select hops and aromas of blackberry, raspberry and cherry". The combination will offer "a lightly sweet and tart taste - a great mixture of beer and new flavours for adults to enjoy when out with friends at a club or at
a bar after work with colleagues.S. BE will contain 6..