U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES
EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): October 20,
1996
ADOLPH COORS COMPANY
(Exact name of registrant as specified in its charter)
COLORADO 0-8251
84-0178360
(State or other jurisdiction of (Commission File No.)
(I.R.S. Employer
incorporation or organization)
Identification No.)
Golden, Colorado
80401
(Address of principal executive offices)
(Zip Code)
303-279-6565
(Registrant's telephone number, including area
code)
Not applicable
(Former name or address, if changed since last report)
PART II. OTHER INFORMATION
Item 5. Other Events
On October 20, 1996 Adolph Coors Company issued a news release
announcing an arbitration panel's October 18, 1996, ruling in the
first phase of the legal proceedings against Molson Breweries and
related parties, collectively referred to as Molson. The news
release also disclosed the Company's expected range of third-
quarter financial results.
The three-member arbitration panel in Toronto ruled that Molson
breached its licensing agreement with Coors by allowing Miller
Brewing Company to acquire a 20 percent equity interest in Molson
without Coors' consent. The ruling returns all Canadian rights
to Coors products to Coors and requires Molson to pay Coors all
of Molson's profits derived from the sale of Coors products since
April 2, 1993. Damages will be determined in the next phase of
the arbitration, and Coors believes that the amount is
significant. The long-term financial effect of the portion of
the ruling that terminates the existing licensing agreement
cannot be assessed until decisions are made about how Coors will
proceed in Canada, but the Company believes that its future
opportunities in Canada could provide significantly better
financial returns than were available under the terminated
licensing agreement with Molson. The panel also ruled that Coors
was entitled to underpaid royalties. Molson made a cash payment
to Coors of $5.7 million (net of $600,000 of tax withholdings)
during 1996 to cover a portion of the unpaid royalties plus
interest sought by Coors. In its subsequent financial reports,
Coors disclosed the payment but did not record it as income
pending a ruling from the arbitration panel. The panel agreed
that Coors had been underpaid, and the royalty and interest
income will now be recorded in the third quarter that ended Sept.
29, 1996.
The next phase of the arbitration process, which will determine
the full amount of monetary damages due Coors, could begin in
early 1997. The Company's October 20, 1996 news release is
attached hereto as Exhibit 1.
Item 7. Financial Statements and Exhibits
(c) Exhibits
1. News Release of Adolph Coors Company dated October
20, 1996.
Pursuant to the requirements of the Securities Exchange Act of
1934, the
Registrant has duly caused this report to be signed on its behalf
by the
undersigned thereunto duly authorized.
ADOLPH COORS COMPANY
By /s/ M. Caroline Turner
M. Caroline Turner
Vice President and
Assistant Secretary
October 24, 1996
