SABMiller says it will defend itself

Miller Brewing Company has accused Molson Coors of missing targets by as much as a quarter as the SABMiller subsidiary battles to regain control of its brands in Canada, according to a report.

Miller Brewing is locked in a legal showdown with Coors after it tried to terminate a license agreement between the two. Coors, the sales and marketing agent for Miller’s brands in Canada, has filed a lawsuit against the decision.

But, in court documents seen by The Globe and Mail, Miller Brewing said Coors only sold 86% of its target volumes of Miller Genuine Draft in 2010, 77% in 2011 and 75% in 2012.

Miller claims in its defence filings to the Ontario Superior Court that the shortfall gives it the right to cancel the agreement, the Mail said yesterday (11 March).

Coors also alleges that Miller Brewing tried to poach its staff, an accusation denied by Miller, the Mail said.

Last month, Miller said it will “vigorously defend” the action and maintains its right to end the contract. The company said it has given Coors six months notice from 18 January, with the agreement set to terminate on 22 July.