MillerCoors LLC continues to perform strongly since launching in July 2008. The No. 2 U.S. brewer, behind Anheuser-Busch InBev SA (NYSE:BUD), saw third-quarter profit rise 37% from the same quarter a year earlier. Revenue was up 3.1%.
Keystone Light, Miller High Life, MGD 64, Blue Moon and other less-expensive brands carried the day, reporting increased sales in the low single digits. Premium brands such as Miller Chill and Killian's Irish Red didn't go down so smoothly, with double-digit sales declines.
MillerCoors was formed when Molson Coors Brewing Co. (NYSE:TAP) and SABMiller plc combined their U.S. and Puerto Rican operations. The
integration required meshing the sales and marketing teams of competing brands and blending cultures of Denver-based Molson Coors and SABMiller of the U.K.
When the venture was announced, Molson Coors and SABMiller predicted cost savings of $500 million in the first three years of operation. MillerCoors said it saved $73 million in the third quarter by reducing its marketing and general and administrative costs, and combining functions. The latter has resulted in some job cuts, though not the significant downsizing some had feared. While a definitive tally is hard to come by, it appears about 250 to 300 jobs have been trimmed since the JV became operational, though some positions have been transferred to MillerCoors' new Chicago headquarters. - Suzanne Stevens
Adele Gulfo
And the winners are...
