• MSNBC/AP, Wednesday, December 5, 2007 12 PM

As Miller Brewing and Molson Coors prepare to marry their U.S. operations to take on No. 1 Anheuser-Busch, some distributors of just Miller or just Molson Coors products are looking at buying competitors as they grapple with rising costs for fuel, materials and labor.

The U.S. beer industry has no nationwide distributors, consisting instead of family-owned and independent companies. The trend is driven by laws imposed after Prohibition, giving each state authority over alcohol regulation within its borders, says Craig Purser of the National Beer Wholesalers Association. The laws established a three-tiered system of distribution: Manufacturers and importers need federal licenses; distributors need federal and state licenses and retailers need state licenses to sell the products.

Molson Coors spokeswoman Kabira Hatland says she cannot comment on the status of distributors because the companies cannot integrate operations until the deal is finalized. However, all should benefit with more resources for marketing, research and development, representatives of both companies say.

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