European market regulators give OK to Coors, Miller merger
LONDON and DENVER, Colo. In the spirits market, the European Commission has given two formerly rival beer brands the go-ahead to marry.
The European Commission yesterday approved a proposed merger between the Coors Brewing Company of Colorado and the U.S. and Puerto Rican operations of Miller Brewing Co. of Milwaukee. The new company will be called MillerCoors.
The media has reported that the EC waved the green flag after finding no competitive concerns in Europe.
Parent companies of Coors and Miller, Molson Coors Brewing Company of Denver, Colo., and SABMiller of London, agreed last October to merge operations of Coors and Miller. The merger completed a plan to better compete with Anheuser-Busch Cos. Inc. of St. Louis, Mo.
CVS Caremark awarded AT&T PBM contract
WOONSOCKET, R.I. CVS Caremark has been awarded a contract to provide PBM services to AT&T’s employees and retirees, effective Jan. 1, 2009.
“We are delighted that AT&T has chosen to consolidate its entire PBM business with us,” stated Tom Ryan, chairman, president and chief executive officer of CVS Caremark. “AT&T is one of our oldest and best customers, and we consider this decision to be a vote of confidence for our integrated model of delivering pharmacy health care. By consolidating their PBM business with CVS Caremark, they will be well positioned to consider a number of the unique services that only we can offer.”
Under the agreement, CVS Caremark will provide a suite of integrated pharmacy services, including claims processing, network management, rebate contracting, mail order pharmacy and specialty pharmacy services.
Commenting on the news, Lehman Brothers analyst Meredith Adler stated in a research note, “Since Caremark already had about two-thirds of the contract previously, we estimate that the incremental revenue will be about $350 million. The total contract is approximately $1.25 billion, with mail accounting for two-thirds of revenue and retail representing the other one-third.”
Adler estimated that the impact to earnings to be about 2 cents to 3 cents. “We believe AT&T’s desire to work with CVS demonstrates that payors are beginning to appreciate the value of the company’s combined model,” she stated.
Safeway president of perishables exits company
PLEASANTON, Calif. Safeway’s president of perishables, Des Hague, has left the company and will be replaced by executive Kelly Griffith. A statement from Safeway stated Hague left the company “to pursue other business opportunities.”
“We are grateful for the contributions and wish him well in his future endeavors,” said Safeway president and chief executive officer Steve Burd in a statement.
Griffith has been with Safeway for 28 years and was most recently president of the chain’s Portland Division, a position he’s held since 2005. His position is going to be filled by Steve Frisby, who is currently president of Safeway’s Texas Division. Frisby has been with Safeway since 1972.