Coors/SABMiller to Combine US Operations

Twelve packs and 18 packs of Coors Light and Coors beer share space in a cooler in a liquor store in southeast Denver in this May 7, 2007 file photo. The makers of Coors and Miller plan to combine their U.S. brewing operations in an effort to compete better against industry-leader Anheuser-Busch. The joint venture announced Tuesday, Oct. 9, 2007 will be known as MillerCoors and will have responsibility for selling brands like Miller Lite and Coors Light in the U.S. (AP Photo/David Zalubowski, file) (David Zalubowski - AP)

Beer Marketer's Insights reports overall beer sales were up just over 1 percent last year, while crafts were up 11-12 percent, imports 7-8 percent and lights in the low single digits. Dragging the industry down, executive editor Eric Shepard said, is mainstream, nonlight beers, such as Bud, Miller and Coors.

The merger has long been expected, he said, but the question now is how Miller Lite and Coors Light will keep their own identities.

"You have two powerhouse light brands," he said. "Can they figure out how to do that and not get in each other's way?"

Bud Light is the nation's top selling light beer, by far, he said, while Miller Lite and Coors Light have long been the second and third, sometimes swapping positions.

Consumers won't notice much difference after the merger, he said, though they can probably expect to see more national marketing campaigns.

The company will decide on a location for the new headquarters as integration moves forward executives said, though they promised to keep a presence in Miller's hometown of Milwaukee and Coors' headquarters in Golden, Colo. Miller has 6,000 employees and eight breweries and Coors has 4,000 employees and two breweries. Executives on the call estimated the new company would have 10,000 employees and said they do not expect brewery closings.

They said the deal will add to both of their earnings in the second full year of combined operations.

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AP Business Writers Christopher S. Rugaber in Washington and Jim Suhr in St. Louis contributed to this report.