Thursday, July 22, 2004

A Good Canadian Beer Plus a Watery American Beer Equals???

Sort of interesting for us beer drinkers: Coors and Molson to Merge in $6B Deal

It's no secret that I am not a fan of the "Big 3" American beers - Bud, Miller, Coors - but of the three, I do consider Coors the least watery. My regular beer is American - Sam Adams - but I do enjoy Molson when I want a pilsner. This deal is not likely to bring any new products to the market, so this is just an interesting move as the alcoholic beverage market continues consolidation.

The article notes that this is a "merger of equals", a phrase I always find interesting. If business history teaches us anything about mergers, it's that one company will always gain supremacy in a "merger of equals". Eventually one side's management team will gain all the top spots, putting their company's managers in the primo positions while forcing the other side's managers into crummy spots or out of the company.

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