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Wholesalers can breath easier after Coors sale.

Wholesalers can breath easier after Coors sale

For the time being, Stroh wholesalers can unclench their fists and take a deep breath since Coors Brewing Co. announced that the Stroh network of distributors "will be welcomed into the Coors family."

Before the $425 million deal was announced, industry analysts speculated that the Stroh Brewery Co. would abandon all but its most lucrative wholesalers in favor of sales representatives or brewery "brokers." However, at this point Stroh wholesalers will continue to exist alongside Coors distributors - their former competitors - without fear of brewer-backed distributor mergers.

Peter Coors, president, Coors Brewing Co., explained that because of regulatory reasons, the Colorado brewer is not permitted to force consolidations between Stroh and Coors wholesalers. But such mergers, "as the result of business decisions in areas where such consolidations would be helpful," will be encouraged, Coors said.

Coors added he did not fully understand the concept behind the use of "brokers" and could offer no further comment on the situation but that his company "is looking into the matter."
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Title Annotation:Coors Brewing Co.
Publication:Modern Brewery Age
Date:Oct 2, 1989
Previous Article:Coors bid for Stroh signifies fiercer competition in the 1990's.
Next Article:July imports to US drop eight percent.

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