![#](https://e-malt.com/Images/left_top_corner16x200.gif) | E-Malt.com News article: Latin America: Molson Coors poised to show strength in numbers due to integration of the Miller brand - analysts![Brewery news](https://e-malt.com/Images/BeerBullet2.gif)
Late last year, Molson Coors confirmed its intention to buy out SABMiller from their MillerCoors US joint venture for US$12 bln. As part of the deal, Molson Coors will take control of the Miller brand portfolio globally.
At the time, Molson Coors CEO Mark Hunter said the buyout would help accelerate Molson Coors' growth strategy "by strengthening our international beer portfolio ... as well as expand our presence in high-growth markets". Last month, Hunter even described the Miller Lite brand as providing a "great backbone" - along with its already-owned Coors Light and Staropramen brands - in international terms.
Last week, analysts agreed that the integration of the Miller brand would prove "transformative" - particularly in Latin America. In a note following a management meeting, Cowen & Co's Vivien Azer said the company is poised to show strength in numbers.
"Post the MillerCoors deal," Azer writes, "integration of the Miller brands should prove transformative to the segment, especially in Latin America as the brand will complement Molson Coors' footprint across the region and facilitate broader global expansion into additional markets such as Africa and Asia."
Delving further into Latin America, Stifel analyst Mark Swartzberg said that, once completed, the transaction will see Mexico provide scope for growth.
"In Mexico, the new rights to Miller Lite and the rest of the Miller International portfolio represent at least a 25% increase in region volume and the opportunity for joint marketing and in-market merchandising of Coors Light and Miller Lite, at a time when industry volume growth is at or above population growth and Bud Light is rapidly growing region share," he says.
Molson Coors' acquisition of SAB's 58% stake in MillerCoors is conditional on Anheuser-Busch InBev completing its purchase of SAB. Both are expected to complete in the second half of the year.
15 June, 2016
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