MillerCoors HQ moving to Chicago

[SeriesFinale]

I'm a little surprised I haven't seen anything about this posted here. Gruesome news on a number of levels.

[patrickgpe]

the number of jobs that we loose are not that substantial, to loose the status as the hq of miller brewing is catastrophic. It is a general trend of this city unfortunatly due to the tax climate that now exists.

[SeriesFinale]

I'd assume the 150 jobs lost are some of the higher-paying in the city, which will have ripples elesewhere. I do agree it's more devastating in terms of identity, however.

[endaround]

Yes they moved to that tax haven that is Chicago, Illinois!

[SeriesFinale]

Yes they moved to that tax haven that is Chicago, Illinois!

They did get massive subsidies, and then consider most of the employees themselves will probably move to the Northshore, where they'll be in a better situation, taxwise, than living in town.

[ccbrew]

In terms of brand/city pride, it's hard to tell whether this is better or worse than InBev's recent takeover of A-B.

[blatzlight]

the jobs lost have an average income in the six figure range. miller was one of the few companies left that could attract top marketing talent to the city. there isn't much left to do but move to chicago if this is your field.

[mothershipconnection]

Suddenly, everyone in Chicago "always liked Miller lite and never said it's for redneck slobs. No, I did, shut yer fricken face Bruno! I'm gonna come over there and beat ya like a sissy!"

[chuckiehacks]

I think this was the best-case scenario for Milwaukee, actually.

 

From nearly the beginning of the JV, MillerCoors made not-too-veiled statements about moving to a neutral site to avoid the sense of one Denver or Milwaukee "winning." I'd much prefer Chicago to Dallas. MC has already announced they're plowing $50MM into upgrading and expanding the Milwaukee brewery, which will produce beer at levels not seen since the '70s.

 

Chicago is also close enough that some of the relocated employees might stay in Milwaukee and commute. This is becoming more common in this area.

 

Its widely believed that Chicago offered $20MM in tax subsidies. Milwaukee is said to have made an offer (though I'm sure not that aggressive), but was told early on in the process that Milwaukee and Denver were not realistic candidates.

[blatzlight]

Chicago is also close enough that some of the relocated employees might stay in Milwaukee and commute. This is becoming more common in this area.

All that I have spoken with will be moving to Chicago. Most are not from Milwaukee but moved here to work for Miller, though some are from the area but will be leaving as there are not jobs that pay like Miller in Milwaukee.

 

Also, the new jobs being created are all blue collar and not equal to the value in terms income.

 

[Invader3K]

Things like this will continue happening until the tax and general business climate changes for the better in this state.

[AdvantageSchneider]

Things like this will continue happening until the tax and general business climate changes for the better in this state.

 

The move had nothing to do with the tax and general business climate of the state. It was done because the leadership of the new JV didn't want to pick either Denver or Milwaukee as the headquarters because they didn't want the city not chosen to be seen as the loser.

 

My question, is anyone going to drink less Miller products because it's no longer a Milwaukee product? Personally in the past I picked Miller products over other b/c it was a hometown product. I do think I will gravitate towards more microbrews made in the Milwaukee and Wisconsin rather than miller products.

[nate82]

My question, is anyone going to drink less Miller products because it's no longer a Milwaukee product? Personally in the past I picked Miller products over other b/c it was a hometown product. I do think I will gravitate towards more microbrews made in the Milwaukee and Wisconsin rather than miller products.

It will be still be made in Milwaukee and every other city where it is made. The factories are not going anywhere just the HQ which really isn't a big deal to me. Plus Miller still bottles some other beers than Miller.

 

[Invader3K]

Right...the idea of what is a "Miller" product is pretty vague...seeing how they got bought/merged with SAB a few years ago. Like nate82 pointed out, most of the stuff you will be buying locally will still be produced in Milwaukee.

 

Nothing wrong with trying other brews, though!

 

I do disagree that the move "had nothing to do with the tax climate". It sounds like Chicago gave them a pretty good incentive to come there. I think it probably was going to go there regardless, but Miller isn't the only example of a company moving at least part of its operation out of state due to taxes or other factors.

[endaround]

That incentive is peanuts to a company as big as Miller, especially since it won't do anything to reduce their tax burden in Milwaukee anyway. Taxes aren't a huge deal in locationd ecisions, studies have been done showing this. If they were no one would have business in Manhattan,

 

And how does living in Chicago' North Shore make them better? Thier cost of housing likely doubled with higher taxes from that plus higher energy costs.

[bork]

Interesting that now Pabst is the number 1 American owned brewer and they're trying to get a lot of mileage out of that. Of course, there's the small detail that they don't have any breweries and that MillerCoors brews all of their beer.

 

http://www.jsonline.com/story/index.aspx?id=773456

[JoeHova]

can I ask what would be the point of retaining Milwaukee's tax base if, in order to do it, the city had to give so many incentives and breaks as to barely be collecting any taxes at all? It seems bizarre to make an argument that having a business in town is important because of the tax revenues it generates, but then go on to say that to keep the business, the city should give the business upwards of $20 million in tax breaks. What would be the point? Let them leave, it's irrelevant anyway, I'm sure none of those people actually lived in the city of Milwaukee. Maybe they went to a few restaurants or a Brewers or Bucks game once in awhile but overall the effect will be negligible as long as the brewery itself doesn't leave.

[blatzlight]

can I ask what would be the point of retaining Milwaukee's tax base if, in order to do it, the city had to give so many incentives and breaks as to barely be collecting any taxes at all? It seems bizarre to make an argument that having a business in town is important because of the tax revenues it generates, but then go on to say that to keep the business, the city should give the business upwards of $20 million in tax breaks. What would be the point? Let them leave, it's irrelevant anyway, I'm sure none of those people actually lived in the city of Milwaukee. Maybe they went to a few restaurants or a Brewers or Bucks game once in awhile but overall the effect will be negligible as long as the brewery itself doesn't leave.

Many of these workers lived in the city. These are the bright and talented 27-35 year old talent that Wisconsin loses a lot. It is this type of thinking that expedite the "brain drain" that Wisconsin experiences.

 

[JoeHova]

Milwaukee has bigger problems than where a hundred yuppie d-bags spend their disposable income. If that makes people want to leave, oh well. It's laughable to think that a city of 600,000 should bend over backward to keep some marketers or that the loss of said marketing people constitutes any kind of "brain drain".

[blatzlight]

Milwaukee has bigger problems than where a hundred yuppie d-bags spend their disposable income. If that makes people want to leave, oh well. It's laughable to think that a city of 600,000 should bend over backward to keep some marketers or that the loss of said marketing people constitutes any kind of "brain drain".

Nice comment about being a d-bag. What is this, lowbrow hour at bf? Christ, I guess some aren't above juvenile name calling.

 

[homer]

"hundred yuppie d-bags spend their disposable income."

 

It's just one more example of high paying jobs leaving the city/area. I'm not totally convinced it's the taxes that make companies leave. I do think there's a lack of entreprenurial spirit in Milwaukee. I mean how many big companies have sprouted up there in the last 20 - 30 - 40 years?

[JoeHova]

What? I didn't call you anything, I was speaking in general terms.

And subsidize those that don't have jobs....

Who do you mean? Their wives/kids? Because otherwise I'm not sure what you could be referring to. 100 people leaving, even if they all make $400,000 per year is $40,000,000. How much of that gets spent on property and sales taxes in the city? Not too much. And even if every single penny of that went right into the city's coffers, that only would account for like 2% of the city's budget.

 

I don't see what the big deal is. Some jobs leave. Some new ones will take their place. The city has actually maintained it's population for the first time in awhile. That's a good sign.

[Invader3K]

The thing about Pabst is interesting, but also brings up the point that Miller does a ton of contract brewing in Milwaukee. They do a lot of Sam Adams product, if I'm not mistaken.

[SeriesFinale]

And how does living in Chicago' North Shore make them better? Thier cost of housing likely doubled with higher taxes from that plus higher energy costs.

Taxes are much lower on the Northshore and home value is much higher

[homer]

What? I didn't call you anything

Maybe he works there.

 

And taxes are lower outside Cook County - which includes a lot of the North Shore (Lake County).