Two major beer brands in the U.S. will combine forces. Molson Coors Brewing Company (NYSE:TAP) and London's SABMiller plc (LON:SAB) agreed to combine their U.S. operations. The joint venture will be called Miller Coors. What creativity!

Together, Miller Coors will produce annual revenue of $6.6 billion – that is 69 million barrels of beer. The combination came together in an effort to create a stronger business that could better adapt to changes in the U.S. alcohol beverage industry and as a direct challenge to the leading U.S. brewer, Anheuser-Busch Companies, Inc. (NYSE:BUD). Anheuser-Busch, brewer or Budweiser and Bud Light, owns more than 40% of the U.S. beer market.

Molson Coors Vice Chairman Pete Coors, clearly articulated the reasoning behind the combination. According to The Street,

 "This transaction is driven by the profound changes in the U.S. alcohol beverage industry that are confronting both of our companies with new challenges"

• "Consumers are broadening their tastes and are increasingly looking for greater choice and differentiation;
• wine and spirits companies are encroaching on traditional beer occasions, and
• global beer importers and craft brewers are both taking a larger share of volume and profit growth.”