Canadian brewing group, Molson Inc., is to extend its Project 100 cost-reduction initiative to its Brazilian brewing subsidiary, Kaiser. The company plans to cut costs by BR100m (US$41m) a year over the next three years. The Project 100 initiative in Canada undertaken in 1999 saved the brewer C$100m in annual costs.

Molson president and CEO, Dan O'Neill, said he expects to achieve the savings in Brazil mainly from improved capacity utilization, better procurement and distribution and more effective management. The company said the programme could involve plant closures and redundancies.

O'Neill added that he expects earnings before interest and taxes to grow by in excess of 20% for the fiscal 2002-2003 year, and earnings per share of between $1.95 and $2, in line with predictions analysts have been making since Molson's $765m acquisition of Kaiser in March.