Coors, Molson Plan to Merge
Coors, Molson Plan to Merge
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Coors Brewing Co., Golden, Colo., and Molson Inc., Montreal, have
announced plans to unite. The merger would create the fifth-largest brewer
in the world by volume, with 52 billion barrels, and have annual revenues
of $6 billion.
The company would be known as Molson Coors Brewing Co.
and would be led by Coors Chief Executive Officer Leo Kiely, who will keep
the same title, and Molson Chairman Eric Molson, who will serve as chairman
of the joint company. The company will have headquarters in Colorado and
Montreal.
“This transaction allows us to create a stronger
company in a consolidating global industry
while preserving Molson’s rich heritage as North America’s
oldest beer company and Canada’s leading brewer,” said Eric
Molson in a statement.
“I’m very proud to see the company started
by my great grandfather more than 130 years ago combine with a company of
Molson’s caliber and heritage,” said Coors Chairman Peter
Coors. The companies say they expect to generate $175 million per year by
2007 in cost savings and revenues.
The announcement of the merger was followed by rumors
that Ian Molson, cousin of Eric Molson, would attempt his own company
takeover by acquiring Molson for between $3.8 and $4 billion. Ian Molson
and several other Molson board members resigned this spring over
disagreements regarding company management. BI
Pepsi gets ‘Smart’
PepsiCo has launched a new
“Smart Spot” symbol to put on more than 100 of its products
that it says contribute to a healthy lifestyle. Beginning next month, U.S.
consumers will find the symbol on Tropicana, Gatorade, Frito-Lay, Quaker
and Diet Pepsi products.
“Consumers have told us they want simple, clear
and positive information to help them identify and consume food and
beverage choices that contribute to healthier lifestyles, said Steve
Reinemund, chairman and chief executive officer at PepsiCo, in a statement.
“The Smart Spot symbol is another step in our long-term efforts to
improve product choices and encourage healthier lifestyles.”
Products to carry the symbol meet nutrition criteria
based on the U.S. Food and Drug Administration and the National Academy of
Sciences. They include limits on fat, cholesterol, sodium and added sugar.
The symbol also will identify products that contribute fiber, vitamins and
other nutrients to the diet. According to PepsiCo, more than half of its
new product revenues come from Smart Spot products, and the company is
committed to having at least half of its future new products qualify for
the symbol.
In addition to the new symbol, PepsiCo has become the
national presenting sponsor for America on the Move, and along with the
association, is producing Balance First, educational materials on calorie
consumption that will be distributed to elementary school children in the
fall. BI
Starbucks, Kraft build relationship
Kraft Foods and Starbucks
Coffee Co. are expanding their supply, licensing
and distribution agreement with the addition of six new whole bean and
ground Starbucks coffees, three distribution channels and national
distribution of Seattle’s Best Coffee and Torre-fazione Italia
brands. The two companies formed their original partnership in 1998, and
the new agreement extends distribution to superstores, drug stores, natural
food stores and club stores. Seattle’s Best and Torrefazione were
acquired by Starbucks last year, and include 31 flavored, non-flavored and
organic Seattle’s Best coffees, as well as eight Torrefazione blends
named after regions of Italy. BI
California wine industry achieves 40 percent growth in
four years
The Wine Institute and the California Association of Winegrape
Growers have released results of Economic Impact of California Wine 2004.
According to the study, the California wine industry grew 40 percent
between 1998 and 2002, and contributed more than $45 billion to the
state’s economy.
“Our great California wine industry creates more
than 200,000 jobs, billions in economic activity and preserves agricultural
land and the family farm,” said Wine Institute President and Chief
Executive Officer Robert Koch in a statement.
“Despite the challenges of intense global
competition, trade barriers, agricultural pests and the constant threat of
increased taxes and regulations, the state’s wine industry is strong
and a major contributor to the economic vitality of California.”
California is the fourth-largest wine producer in the world
after France, Italy and Spain, and had more than $643 million in exports last
year. BI
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