Coors and Miller brewing companies plan to combine their operations to compete against Anheuser-Busch. The new name will be MillerCoors. Right now their biggest competitor is Anheuser-Busch.
The change will save the two companies about $500 million dollars and will come from reducing the shipping distances, finding economies of scale in brewing operations, optimizing production, and getting rid of duplicate corporate and marketing services. They expect the company to have annual beer sales of about $6.6 billion dollars. With the money that they save they plan to invest more to market their products and be able to compete better and more efficiently.
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