Events

INSIGHTS Express Vol 10, No 37a Jun 2, 2008

Major MillerCoors Merger in Northwest: Mount Hood and Columbia

Both these cos very active dealmakers in NW, but heretofore only as competitors. Now they’re getting together. Announcement comes right on ostensible eve of MillerCoors JV. Mount Hood and Columbia will merge to create 1 of top 10 beer distribs in US at 25 mil case+,. 35 mil cases, including non-alc bevs, pending supplier approval. Their wine bizzes will remain separate. Beauty of deal is they join forces without adding debt. It is 50/50 deal with 3 board members from Mount Hood (Dick Lytle, Steve Lytle and Dan Agnew) and 3 members from Columbia (Ed Maletis, Ron Fowler, John Von Schlegell). They hope to close by early fall. The chairman of the new co will be current Mt Hood prexy/ceo Steve Lytle and the prexy/ceo will be Greg Christiansen, currently prexy of Columbia.

The new co will be called CoHo. So now Coors and Miller be in same house in Portland, Eugene, Bend and other Oreg mkts. In Wash, Columbia sells Miller in Seattle, Mount Hood sells Coors/ Miller in Yakima, Wash and other smaller mkts. Collectively, these 2 cos will do $600 mil in beer and non-alc bevs. This is big, big move, but safe to say that new entity clearly looks to get bigger still.

EDITORIAL ADDRESS: PO BOX 264, West Nyack, NY 10994 (845) 624-2337 Fax: (845) 624-2340 Email: bmiexpress@aol.com Website: http://www.beerinsights.com. Copyright 2008 by Beer Marketer's INSIGHTS, Inc. All Rights Reserved. Warning: It is illegal under the Federal Copyright Law to retransmit or reproduce this newsletter in any manner, including for internal use, without our permission. Copyright violations will be prosecuted. To report illegal copying or forwarding, contact Betsy Koch, with the law firm Levine, Sullivan, Koch & Schulz. Confidential phone: (202) 508-1128

Beer Marketer's Insight