CANADA: Molson Coors speaks out over Miller sales performance
Coors has come out fighting after SABMiller said it wants to end its contract in Canada
Molson Coors has defended its record over selling Miller brands in Canada and said it will “strongly defend” its rights to keep distributing them in the country.
SABMiller-owned Miller Brewing Company confirmed yesterday (27 February) that it is cancelling its licensing agreement with Molson Coors, as it believes it can grow its brands better under its own steam. The contract is due to end on 22 July, after Miller gave six month's notice.
However, Molson Coors has lodged a lawsuit in Ontario against the move.
In response to SABMiller’s comment’s, the North American brewer issued a statement yesterday saying that it will be “strongly defending our rights to market and sell Miller brands in Canada” as part of the legal action.
Peter Nowlan, Molson Coors Canada’s COO, added that the company is “proud of the success Miller brands have achieved in Canada under our stewardship for the past twenty years”.
Miller has alleged that Molson Coors had “failed to meet certain volume sales targets”, according to a filing from the North American brewer.
Molson Coors will also argue that Miller has breached the licensing agreement by trying to terminate it, according to the filing.
For the past five years, Coors and SABMiller have operated a JV in the US, MillerCoors.
MillerCoors' plans to launch a new, high-strength "golden" lager may not be surprising on one level, but the wider trend is puzzling....
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