COORS FORMS U.S. PARTNERSHIP WITH MOLSON
By Adnews Staff
Molson Inc. of Montreal has inked a deal with the Coors Brewing Company of Golden, Colorado to market and sell Molson's brands in the U.S. market. Coors is paying Molson US$65 million to enter this partnership. Molson retains full control of brand equity and issues affecting brand equity, said Blair Shier, president of U.S. business strategy for Molson. The new partnership, which includes the marketing, sales and distribution of the brands, also includes provisions to extend Molson's licensing agreement with Coors in Canada for an indefinite period. Additional elements of the deal include the extension of the existing agreement to include the Maritime provinces, the co-development of the light beer category in Canada and an increase in Molson's production of Coors products in Canada for distribution in the U.S.