Molson Coors headquarters leaving Colorado, cutting 500 jobs

Discussion in 'Beer News & Releases' started by considerbeer, Oct 30, 2019.

  1. considerbeer

    considerbeer Initiate (36) Dec 15, 2016 Colorado

    This seems like a big deal.

    https://www.outtherecolorado.com/coors-headquarters-leaving-colorado-cutting-500-jobs/

    “CHICAGO (AP) — Molson Coors Brewing Co. is laying off 500 workers worldwide and restructuring its operations as it faces declining beer sales.

    The company expects to save $150 million by closing offices in Denver and making Chicago its North American headquarters. Its brewery in Golden, Colorado, will remain.

    Molson Coors says it needs to streamline and bring new products to market more quickly, like the canned wine and hard coffee it introduced this year.”
     
  2. FatBoyGotSwagger

    FatBoyGotSwagger Meyvn (1,377) Apr 4, 2009 Pennsylvania

    Factors like millineals not drinking their beer and the Seltzer takeover played a large part in this.

    The one interesting takeaway from the situation is Miller's push to get into the super premium/high end beer market which is the area in beer seeing the most growth nowadays.
     
  3. officerbill

    officerbill Disciple (378) Feb 9, 2019 New York
    Society

    How does moving from Colorado to Chicago save money? Isn't Denver a lot less expensive?
     
  4. jesskidden

    jesskidden Poo-Bah (1,868) Aug 10, 2005 New Jersey
    Society Trader

    Their US headquarters (one of 'em, anyway) has been in Chicago since the Miller - Coors merger of 2008. (I guess 'cause it was close to Milwaukee?)
    So, essentially, they're consolidating the two US-based offices.
     
  5. officerbill

    officerbill Disciple (378) Feb 9, 2019 New York
    Society

    Okay, probably cheaper/easier to move Denver operations to Chicago than the other way around.
     
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  6. ESHBG

    ESHBG Aspirant (239) Jul 30, 2011 Pennsylvania

    And Denver has shot way up on the cost of living scale over the years and it looks like it will keep trending upward.
     
  7. Squire

    Squire Poo-Bah (2,336) Jul 16, 2015 Mississippi
    Society Trader

    Short term profits and long term losses.
     
  8. spicoli00

    spicoli00 Defender (616) Jul 6, 2005 Indiana

    IIRC, Chicago was in the midst of granting significant tax incentives for businesses to relocate their headquarters in downtown Chicago after many fled to the suburbs. Pretty sure this brought Boeing's HQ to Chicago as well...

    https://www.bizjournals.com/milwaukee/stories/2009/06/29/daily5.html

    First...The brewer announced in July 2008 that it would locate the headquarters in the neutral city of Chicago in fairness to the cities of Milwaukee and Golden, Colo.

    but also...The city of Chicago agreed to provide $6 million in tax incremental financing funds for redevelopment of the property. In addition, the state of Illinois pledged an economic package of roughly $18 million to lure MillerCoors to Chicago over Dallas.
     
  9. stairway2heavn

    stairway2heavn Initiate (41) Aug 17, 2017 New Jersey

    It's a race to the bottom. They're playing states and cities to reduce their tax burden. Simultaneously I expect as pointed out a lot of positions will be merged and the number of jobs in Chicago will be less than those lost, though that's just going by business planning 101. Depends on how well unionized their workforce is.
     
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  10. MNAle

    MNAle Poo-Bah (1,605) Sep 6, 2011 Minnesota
    Society

    Headquarters would be mostly salaried and professional employees, not typically unionized in the USA. The brewery operations are not moving.
     
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  11. stairway2heavn

    stairway2heavn Initiate (41) Aug 17, 2017 New Jersey

    Ah, fair enough. Then, as the Brits say, there's a lot of positions that will be found to be redundant. Hope the corporate types like doing extra work for no extra pay!
     
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  12. ESHBG

    ESHBG Aspirant (239) Jul 30, 2011 Pennsylvania

  13. Ranbot

    Ranbot Champion (888) Nov 27, 2006 Pennsylvania
    Society

    Interesting and I'm quoting a little more from the article...
    BUT, There are some good counter-arguments too... Denver advocates mention some larger companies headquartered in Denver and their own respected universities with marketing programs, but also...
    I would also point out that technology is allowing more talented people to telecommute and grow their careers from almost anywhere. Being in proximity to talent is still important, for sure, but it's becoming less important.

    Not that I know anything about running a multi-billion dollar beer marketing company, of course.
     
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  14. Tripel_Threat

    Tripel_Threat Poo-Bah (2,625) Jun 29, 2014 Michigan
    Society Trader


    Hard coffee? Is the market moving from seltzers to Irish good mornings already?
     
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  15. hoppytobehere

    hoppytobehere Crusader (797) Aug 10, 2012 District of Columbia

    Denver has one of the "hottest" housing markets in the entire country. As someone who has lived in both cities, you would be surprised how expensive Denver is getting.

    Chicago on the other hand has a pretty stable housing market. A lot of neighborhoods have gentrified but city population hasn't grown at all.
     
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  16. MNAle

    MNAle Poo-Bah (1,605) Sep 6, 2011 Minnesota
    Society

    Well, in Chicago they do seem to have their own population control thing going... :grimacing:
     
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