As part of its restructuring and revitalization program, Molson Coors Brewing's North American operational headquarters will be shifted to its existing Chicago offices at South Wacker Drive.
CHICAGO—As part of a company-wide revitalization effort, Molson Coors Brewing Co. is consolidating and reorganizing office locations and has announced its Denver office will be closed and Chicago will be designated as the North American operational headquarters.
The company's Denver office is located at 1801 California St. The company's new North American headquarters will be housed at its existing Chicago office at 250 South Wacker Drive. Functional support roles currently housed in several offices around the country will now be based in Milwaukee.
As a result of its office consolidation efforts, the company expects to reduce employment levels by approximately 400 to 500 employees, primarily in its existing United States, Canada and international reporting segments, as well as corporate.
"Our business is at an inflection point. We can continue down the path we've been on for several years now, or we can make the significant and difficult changes necessary to get back on the right track," says Coors president and CEO Gavin Hattersley. "Our revitalization plan is designed to streamline the company, move faster, and free up resources to invest in our brands and our capabilities. Through it, we will create a brighter future for Molson Coors."
In connection with these consolidation activities and related organizational and personnel changes, which were determined and initiated on Oct. 28, 2019, the company currently expects to incur certain cash and non-cash restructuring charges related to employee relocation, severance, retention and transition costs, non-cash asset related costs, lease exit costs in connection with office leases in Denver, and other transition activities estimated in the range of approximately $120 million to $180 million in the aggregate, the majority of which will be cash charges that will be spread through the balance of this fiscal year and fiscal years 2020 and 2021.
The consolidation activities are expected to be substantially completed by the end of fiscal year 2021. Costs related to these restructuring activities are expected to be recorded as special items within our financial results beginning in the fourth quarter of 2019.
Molson Coors says it plans to unlock approximately $150 million in savings by simplifying its structure. The company will move from a corporate center and four business units (MillerCoors in the U.S., Molson Coors Canada, Molson Coors Europe and Molson Coors International) to two streamlined business units—North America and Europe.
The North America business unit will consolidate the United States, Canada and corporate center, enabling the company to move much more quickly with an integrated portfolio strategy. The Europe business unit will be structured to allow for standalone operations, developed and supported by a European-based team, including a local leadership, commercial, supply chain and support functions. The existing Molson Coors International team will be reconstituted to more effectively grow the company's global brands—with the Latin America business reporting into the North America business unit and Africa and Asia Pacific reporting into the European business unit. The change in structure to two business units will not be effective until January 2020.
The company, which announced some new senior leadership appointments effective Nov. 1, also reported the company will change its name to Molson Coors Beverage Company to better reflect its strategic intent to expand beyond beer and into other growth adjacencies. The company will legally change its name starting in January 2020.
In another real estate related announcement, the company said that it will also invest several hundred million dollars to modernize its brewery in Golden, CO.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
