Molson Coors settles lawsuit with Miller over brand distribution in Canada

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MONTREAL – North American beer partners Molson Coors and SABMiller are ending their 30-year relationship in Canada.

Molson Coors will no longer distribute SABMiller beers in Canada after next April, under a settlement between the two multinational brewing companies.

Molson Coors had sued to retain the Canadian distribution rights to beers such as Miller Genuine Draft and Miller Lite after SABMiller subsidiary Miller Brewing Co. gave notice in late 2012 that it wanted to end the agreement.

Miller had alleged that Molson’s Canadian subsidiary failed to meet volume sales targets and said it could do a better job of growing its own brands.

Terms of the settlement, which averts a trial that was to take place later this year, were not immediately disclosed but spokesmen for both companies said they expect minimal disruption as a result of the split.

The Miller beers under the distribution agreement represent less than one per cent of Molson Coors’ worldwide volume and around five per cent of its Canadian volume.

“We felt it was in the best interests of both parties to come to a settlement on it,” said Molson spokesman Colin Wheeler.

The loss of the beer volume isn’t expected to have an impact on employment, Wheeler added.

SABMiller spokesman John Ratchford said the brewer expects a “seamless transition” that ensures its ability “to better serve Canadian retailers and consumers beer preferences in the future.”

Molson had argued that Miller couldn’t end the licensing agreement that had been in place for about 30 years, while Miller said it gave the required six-month notification.

An Ontario court granted a temporary injunction in June 2013 preventing Miller from terminating the Canadian licensing agreement pending a trial.

Molson Coors, which has dual headquarters in Montreal and the Denver area, and SABMiller have a joint venture to sell their companies’ brands in the United States.

Molson Coors’ portfolio includes Coors, Coors Light, Molson Canadian, Carling, Blue Moon, Keystone and Rickard’s.

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