In a memo reviewed by Bloomberg, MillerCoors LLC said that an internal probe has uncovered two of its workers embezzled millions of dollars from the company in a scheme. Chief Executive Officer Tom Long named long-time employees David Colletti and Paul Edwards as the perpetrators in a scheme that involved selling beer illegally to restaurants and bar chains.
In the memo, Long said, "We are disappointed by this betrayal of pride and integrity by two longtime employees of the company. MillerCoors is seeking to recover the stolen funds from a combination of insurance and restitution in the criminal process. "MillerCoors will cooperate with federal authorities to assure that all those who were complicit in this crime are identified and prosecuted. This crime exploited some gaps in our vendor approval process that have since been addressed."
According to the memo, Colletti devised a scheme involving several former vendors that would have him stealing beer worth several million dollars over several years from a MillerCoors unit and peddling them to restaurants and bar. Edwards' involvement in the scheme was reportedly lesser than Colleti's, Long said. Long also stated in the memo that they have referred the case to federal authorities to prosecute the two and other players involved in the scheme.
When Bloomberg contacted MillerCoors about the memo, company spokesman Jonathan Stern refused to comment beyond an emailed statement which reflected the same language as that of the memo. The information from the memo was first reported by Beer Business Daily.
MillerCoors, which is a joint venture of Denver-based Molson Coors and London-based SABMiller back in 2008, had difficulty protecting shelf space and tap handles as they are losing ground to more craft brews and cocktails in restaurants and bars. Bloomberg said that the company has resorted to creating its own version of ciders and crafted beers in the hopes of winning back customers.
