Printer Friendly

Molson U.S.A. moves to consolidate Martlet/Century brands in Miller houses.

Molson U.S.A., a subsidiary of the Miller Brewing Co., is beginning an effort to consolidate the Martlet and Century brands, in most cases by shifting them into Miller houses.

After Miller bought Molson U.S.A. in January, analysts speculated that a reshuffling might be in the cards.

In a letter from Molson U.S.A. president John Barnett to wholesalers, he spoke of a "substantial realignment of Martlet and Century brands in selected states, in an effort to strengthen our long-term viability as an importer."

Barnett says that the changes are being made after a review had been conducted to determine the most effective integration of the distribution network, and noted that "changes in distributor assignments do not reflect poorly on wholesalers who will no longer carry the Martlet and Century brands."

Barnett promised that Molson will "arrange purchase of inventory and provide distributors with compensation for the loss of Martlet and/or Century brands. We believe these arrangements are not only unique but fair and equitable as well."

According to industry sources, the deal will offer wholesalers compensation based on their one-year gross margin for the brands, minus the cost of goods sold (and including spoilage, rebates, deposits, taxes, credits and discounts) for the fiscal year ending August 31, 1993.

Currently the move affects wholesalers in "select states," including some houses in New York and Connecticut. Wholesalers affected were given ten days to reply.

Earlier in the year, Miller Chairman (then president) Jack MacDonough told Modern Brewery Age, "Franchise laws are such that it's really up to the people who have those brands now, as to what they wish to do. If a Miller wholesaler wants to buy a Molson brand from another distributor, that's their prerogative. We are not making distribution changes."

There were reports do some of the affected wholesalers are considering legal action, as they consider the action "unwarranted" and the compensation "inadequate."
COPYRIGHT 1993 Business Journals, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:Miller Breweries USA Inc.
Publication:Modern Brewery Age
Date:Sep 20, 1993
Previous Article:Labatt president forecasts tough competition in Canada.
Next Article:Health care package will require "sin taxes." (President Clinton's health care reform plan)

Related Articles
It's G'day for Century Importers after merger with Martlet Importing.
Asahi and Molson U.S.A. will sell dry beer in U.S.
Molson U.S.A. creates new "brand group." (Molson Breweries USA Inc.)
Molson U.S.A. to be absorbed by Miller Brewing Co.'s Specialty & Craft unit.
Imported to Milwaukee: interviews at Miller with executives for Asahi, Foster's and Molson.
Molson and Foster's Brewing Group buy back Miller Brewing Co. stake, become partners in U.S.
Comment: SAB takes control in Milwaukee.
Raising the Canadian flag: Molson U.S.A. focuses on Molson Canadian to revive a battered franchise.
Carlsberg regains control of brands in U.S.

Terms of use | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters