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ADOLPH COORS COMPANY ANNOUNCES PROFIT IMPROVEMENT PLANS

 GOLDEN, Colo., July 12 /PRNewswire/ -- Adolph Coors Company (NASDAQ: ACCOB) announced today steps to improve the long-term profit capabilities of its single operating unit, Coors Brewing Company (CBC).
 The multi-part plan will include lowering overhead costs, outsourcing or decentralizing selected company functions, reducing inventories of raw and finished goods, improving productivity, utilizing excess capacity and increasing the effectiveness of market spending.
 According to Leo Kiely III, president and chief operating officer, all initiatives are designed to improve company financial performance and support the corporate goals of generating profit adequate to reward shareholders, repay debt, grow market share and reward employees.
 "Coors Brewing Company has outpaced the industry in volume growth rate for eight consecutive years. At the same time, we have lagged in providing adequate returns to our shareholders. We are committed to improved profitability while continuing to build our competitive position in the marketplace," he said.
 Included in the lowering of general and administrative costs will be a reduction over time of about 500 white collar jobs, primarily through enhanced early retirement packages, incentives for voluntary separation, and attrition. This represents about 20 percent of the 2,500 salaried exempt and salaried non-exempt workforce at Coors. Reductions from today's actions do not affect the remainder of the CBC workforce which totals 6,579.
 In working to lower overhead costs, the company will also outsource much of its marketing services and field marketing. By September, an independent, free-standing marketing services company will be formed, consisting largely of current CBC employees, who will provide the marketing support needs for Coors including merchandising, consumer promotion, fulfillment, creative services, field media and some parts of trademark licensing and trademark sales.
 About 100 Coors employees will be offered jobs in the new agency.
 Structured as a separate company, Front Range Communications will be run by an independent partnership consisting of three majority owners and minority partner Tracy-Locke, a DDB Needham advertising agency and part of the Omnicon Group, Inc. Tracy-Locke will provide services to the new business including human relations, legal counsel, payroll, finance accounting and the like.
 "This new integrated marketing communications agency is an example of the innovative approaches we will be taking to restructure some parts of our business in order to be more competitive and to use the tremendous talents of our people in a creative way," Kiely said.
 Other initiatives being planned include developing localized field business units with greater decision-making authority and accountability for all discrete activities within specific regions; reducing inventories of commodities, finished goods, packaging supplies and support materials; optimizing the use of Coors satellite distribution centers in order to reduce handling and inventory costs; improving productivity in all operations; investing in high return capital projects and increasing brand development funding.
 According to Kiely the brewing business continues to be highly competitive because of price discounting and brand spending and is faced with the possibility of increasing beer excise taxes.
 "Despite these challenges, we are planning to be more profitable in the future as a result of these new company initiatives," Kiely said.
 Peter H. Coors, vice chairman and chief executive officer of CBC said the changes are supportive of Coors' long range goals.
 "These moves put us on an aggressive path to be a strong competitor in the brewing industry," he said.
 Last Thursday, Coors announced second quarter income from continuing operations of $18.9 million, up from $14.9 million from continuing operations a year earlier. Last year Coors, the nation's third largest brewer, reported record sales volume of 19.569 million barrels.
 -0- 7/12/93
 /CONTACT: Anita K. Russell or Aimee St. Clair of Adolph Coors Company, 303-277-2555, or in Colorado, 800-332-3725/
 (ACCOB)


CO: Adolph Coors Company ST: Colorado IN: FOD SU:

TS-PS -- NY011 -- 0305 07/12/93 10:01 EDT
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Date:Jul 12, 1993
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