May 21. 2010 2:00AM - Last modified: March 14. 2012 12:52PM

MillerCoors sets record straight about future of Milwaukee brewery

By Jim Butman

"Sensational" comments made by some Republican state legislators and echoed by some Milwaukee talk radio hosts in recent days prompted MillerCoors LLC to issue a statement of clarification about the future of its Milwaukee brewery today.

On Thursday, State Reps. Rich Zipperer (R-Pewaukee) and Robin Vos (R-Caledonia) called on Democratic Gov. Jim Doyle and Milwaukee Mayor Barrett to immediately reverse their proposed "excessive" water rate hikes.

 "It is ridiculous for Mayor Barrett to claim to be concerned about jobs while he is supporting a huge increase to MillerCoor's water bill, directly threatening 1,500 jobs at the brewery," Zipperer said. "The reckless policies of Gov. Doyle have already contributed to the loss of 163,000 jobs in Wisconsin, and Mayor Barrett has been supportive of these policies all along the way. Skyrocketing water bills for businesses and families, as proposed by Doyle and Barrett, will only make our state's economic situation more dire."

"This time, if not stopped, the tax shift to fill a hole in Mayor Barrett's city budget will cost jobs at MillerCoors and cost family budgets all across Southeast Wisconsin by driving up water rates," Vos said.

Julian Green, director of media relations for Miller Coors, today responded with an official statement, headlined, "MillerCoors Has No Intention of Ending Production at its Hometown Milwaukee Brewery." Here is Green's complete statement:

"The sensational statements and over-the-top media reporting of the last few days about the impact of the proposed Milwaukee water rate increase has blown this issue completely out of proportion. MillerCoors has no intention of ending production at our hometown Milwaukee Brewery, which is operating at historically high volume levels since the successful joint venture between Miller and Coors launched nearly two years ago. Like any good business, we constantly monitor our production costs across our facilities and seek efficiency and competitive advantage by spreading volumes optimally across our operations. While we are concerned about the proposed water utility rate increases, these costs are only part of a much bigger picture. We are only looking to lessen the financial impact to our Milwaukee operation due to the heavy volumes we utilize. We've been brewing great beer in Milwaukee for over 150 years with strong and continuous support from the leadership of The City of Milwaukee, Milwaukee County and State of Wisconsin. In fact, in response to the proposed water rate increase, the City of Milwaukee and Wisconsin State Legislature assisted us in passing SB651, which includes language to offset a portion of any potential future increase. We'd ask everyone to relax and enjoy one of our fine beers with the reassurance that we will be making beer in Miller Valley for many years to come."

The speculation about MillerCoors' future in Milwaukee was fueled earlier this week by the State Public Service Commission's consideration of higher water rates.

However, MillerCoors chief communications and government affairs officer Nehl Horton wrote a letter to Barrett Thursday, thanking him and his staff for assisting in the State Senate's passage of a bill that will allow a water tax credit for heavy industrial water users in certain parts of the City of Milwaukee.

"As one of our key, hometown breweries, the Milwaukee Brewery is also the oldest in our system and often struggles to compete for volume with some of our newer plants due to higher per barrel costs to brew beer. In particular, Milwaukee competes directly with our Trenton, Ohio brewery for a significant portion of volume here in the upper Midwest. Any increase in operating costs, and water rates are of particular concern due to the heavy volumes we utilize, can result in lost volume for Milwaukee. That is why we are so appreciative of the City's assistance in working with us to pass this water tax credit language, which will allow us to offset a portion of any future rate hikes here in Milwaukee," Horton wrote. (To view the entire letter, click here.)


UPDATE:

The campaigns of Wisconsin's two Republican gubernatorial candidates also made references to the MillerCoors situation this week.

Keith Gilkes, campaign manager for Milwaukee County Scott Walker, issued the following statement: "Unlike Tom Barrett, Scott doesn't need to ‘consult a tax expert' to know that a $22.5 million tax hike kills jobs and drives away business. Tom Barrett has raised taxes in Madison, in Washington, and in Milwaukee, and the recent Doyle-Barrett water rate hikes are now threatening to drive away the 1,500 jobs at MillerCoors .Barrett is lock step with Jim Doyle in supporting the same type of big government thinking that got us into this mess to begin with - a love for a boondoggle $810 million taxpayer funded train from Milwaukee to Madison, and going gaga for a global warming bill that threatens to cost Wisconsin 43,000 jobs."

Former Congressman Neumann, who is challenging Walker for the GOP nomination, issued the following statement earlier today: "First, it was Harley-Davidson. Now Miller Coors is considering whether to pull up stakes and leave Milwaukee. This would devastate not only Wisconsin's economy, but also our sense of pride as a state. The potential loss of two world-famous companies, both Wisconsin institutions, is simply unacceptable. It is telling that this is happening under the watch of a career politician who now wants to be governor. It is clear he doesn't have the ability to solve Wisconsin's jobs crisis. The business climate in Milwaukee and Wisconsin is in dire need of an emergency overhaul. As governor my highest priority will be to ensure that Wisconsin balances its budget, controls spending and cuts taxes with a goal of generating jobs at a record pace and keeping our largest employers right here."


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