Canada: Molson Coors Brewing Co. is in talks to acquire the Ontario based microbrewery, Creemore Springs Brewery Ltd. Sources say Molson Coors wants to buy 100 % of Creemore, which makes what beer connoisseurs say is among Canada's finest brews. There's no certainty that the discussions will lead to a deal, but sources said an announcement could come before the end of April, The Globe and Mail communicated on April 16.

"A portion of the market is turning to the small brewer segment," said a source familiar with the discussions. "It's long been rumoured that Sleeman [Breweries Ltd.] might be acquired by one of Labatt [Brewing Co. Ltd.] or Molson for that reason, and I think that Creemore probably fits into that kind of category. It doesn't give them huge volume, but it gives them some market share because these microbrands are very popular these days."

Calls to Molson Coors Canada and Creemore were not returned. It is believed that Molson Coors would take the Creemore brand national, but operate it as a separate division -- possibly using it as a first step in creating a specialty beers division.

Molson Inc. and Adolph Coors Co. merged in February to become the world's fifth-largest brewery. At the time, the companies said they would use the merger as a platform for further acquisitions.

For almost two decades, Creemore has taken pride in marketing itself as everything that a global giant isn't. The company was founded in 1987 by John Wiggins, a veteran of Toronto's ad industry. He set up shop in an abandoned hardware store on the main street in Creemore, Ont. In designing Creemore's image, Mr. Wiggins created a label featuring a brook and a waterfall. "We wanted to be known as the little guy, the beer made by elves," Mr. Wiggins told The Globe and Mail in 1997. In an era where some breweries produce dozens of brands, Creemore still only makes one beer year-round, a lager, plus a winter bock called urBock.

Molson and Labatt have both been under pressure from the growing popularity of discount beers, imports and microbrews. The non-voting shares of Molson Coors closed down $1.37 yesterday at $94.22 on the Toronto Stock Exchange.

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