CANADA: SABMiller unit "disappointed" over Molson Coors court injunction

By | 21 June 2013

SABMillers Canada unit is unhappy with the temporary injunction

SABMiller's Canada unit is unhappy with the temporary injunction

SABMiller's Canadian division has said it is "disappointed" after a court in Canada moved to temporarily stop it ending a licence agreement with Molson Coors' Canadian unit. 

The tie-up, which involves Molson acting as sales and marketing agent for Miller Brewing Co's (MBC) brands in Canada, was due to end next month. However, Ontario's Superior Court yesterday (20 June) granted a temporary injunction to Molson preventing MBC ending the deal before a full legal hearing in December. 

Details of the fall-out first emerged in February, when MBC's Canada chief said it was dumping the agreement in order to "grow Miller's brands in Canada". Molson subsequently lodged a lawsuit against the move, but did not comment on its motives. 

Following yesterday's injunction, Stephen Rogers, MBC's legal counsel said: "We remain firm in our expectation that the court will agree that we adhered to the terms of our Canadian licence agreement when we exercised our right to terminate."

Molson Coors has yet to respond to a request for comment. 

The two companies also operate a JV in the US, MillerCoors. Speculation at the time suggested SABMiller's move to end the Canada agreement could signal a renewed appetite for it to get a greater chunk of MillerCoors, as a year five-year lock-up period over the JV is also due to end

Expert analysis

Beer in Canada

Beer in Canada industry profile provides top-line qualitative and quantitative summary information including: market share, market size (value and volume 2007-11, and forecast to 2016). The profile also contains descriptions of the leading players including key financial metrics and analysis of competitive pressures within the market. Essential resource for top-line data and analysis covering the Canada beer market. Includes market size and segmentation data, textual and graphical analysis of market growth trends, leading companies and macroeconomic information.

Sectors: Beer & cider

Companies: Coors, SABMiller, Miller Brewing

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CANADA: SABMiller unit "disappointed" over Molson Coors court injunction

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