Business

When Adolph Coors and Bernhard Stroh started their breweries more than a century ago, the beer industry was wide open and hundreds of small companies were able to compete. Today the top five brewers control 90% of the market and the industry is no longer so forgiving. Last week struggling Stroh agreed to sell most of its brewery operations to Coors for $425 million.

For Stroh and Coors, the third and fourth largest U.S. brewers, the combination is a matter of necessity. Neither has the financial clout or national brands needed to compete against behemoths Anheuser-Busch (market share: 42%) and Miller (21%). By acquiring the Detroit brewer, Coors will have a 19% share and gain established Stroh brands, including Schlitz and Old Milwaukee.