SABMiller subsidiary Miller Brewing Company said it will  "vigorously" defend the lawsuit

SABMiller subsidiary Miller Brewing Company said it will "vigorously" defend the lawsuit

Molson Coors and Miller Brewing Company are heading for a legal showdown in Canada after the SABMiller subsidiary said it is terminating a licence agreement between the two. 

Coors is currently the sales and marketing agent for Miller’s brands in Canada. But, Miller said in a statement today (27 February) that it is ending the contract. The move has prompted Coors, which also has a JV with SABMiller in the US, to file a lawsuit against the decision. 

Paul Gurr, Miller’s Canada MD said: “While Miller brands make up only a small percentage of Molson Coors’ Canadian sales, this decision reflects our belief that there exists the opportunity to grow Miller’s brands in Canada.” 

The Coors lawsuit was filed in Ontario, according to Miller. A Coors spokesperson declined to comment to just-drinks on the pending case, but said that the company “remains the sales and marketing agent for Miller brands in Canada”.

Miller said it will “vigorously defend” the action and “maintains its right” to end the contract.

The company has given Coors six months notice from 18 January, with the agreement set to terminate on 22 July, it added.