MillerCoors, the U.S.-targeting joint venture between Molson Coors Brewing Co. (TAP) and SABMiller plc (ADR:SBMRY), said fourth-quarter profit slid 40%. The fall is mainly due to the costs to integrate the brands and impairment charges to its Sparks brand, the Associated Press reported.
The company is too focused in a few markets and does not offer a particularly diverse product line to offset times of slow beer growth or shifting preferences.
TAP is not as dominant, diversified, or versatile as some of its major competitors, and sports a much higher debt level, exposing the company to greater financial risks.