The big beer joint venture between SABMiller plc and Molson Coors Brewing Co. is making at least one analyst nervous. According to one report, a J.P. Morgan Chase & Co. analyst
dropped his rating on shares of Molson Coors citing concern about the ability of MillerCoors to mesh breweries, brewing processes and cultures.
These are valid concerns, to be sure. The companies are merging their U.S. and Puerto Rican operations, which will raise a number of complex challenges. A big one will be figuring out how to handle sales and marketing of their popular competing brands Miller Lite and Coors Light. And certainly cultural differences between U.K.-based SABMiller and Denver-based Molson Coors could trip things up.
Still, the companies have already exhibited best-practice JV management in a couple of areas. They were talking integration long before the deal closed June 30, and they've committed
senior-level talent to the JV.
Plus, when it comes to negotiating, a round or two of cold brews can't hurt either. -
Suzanne Stevens
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Juergen Lasowski
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What ever happens they'll still brew very bland beer!