CASE STUDY: MOLSON COORS BREWING COMPANY 1. COMPANY HISTORY‚ DEVELOPMENT AND GROWTH The Molson Coors Brewing Company is an alcohol beverage company. It manufactures and markets beers and other beverage products through its subsidiaries across the world. Commercializes its products under a line of owned and partner brands. MCBC operates through four reportable segments‚ namely‚ Canada‚ the US‚ the UK‚ and Molson Coors International (MCI). Some of its major brands include Coors Light‚ Molson Canadian
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immigrants Adolph Coors and Jacob Schueler established a small brewery in Golden‚ Colorado. Lately‚ Coors Inc. had become the third-largest brewer in the United States. Coors invested $2‚000 in the operation‚ and Schueler invested $18‚000. In 1880‚ Coors bought out his partner and became sole owner of the brewery. Coors’ operating philosophy is “hard work‚ saving money‚ devotion to the quality of the product‚ caring about the environment‚ and giving people something to believe in.” Coors Inc. operation
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Adolph Coors Strategy for success in the mid 1970’s As per our understanding the strategy to Coors success can be attributed to the following Managing Production Cost Various Cost Control Strategies were • Single product Focus – only one kind of beer • High capacity utilization (The idea is that doubling the brewery scale will cut the unit capital cost by 25%) • Produced own malt. Set up rice-processing plant to avoid price fluctuations of “brewing” rice. • High Vertical Integration
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Case #1 South Delaware Coors The Coors Brewing Company is the fourth-largest brewer in the United States. Coors is also renowned for operating the Golden‚ Colorado brewery‚ the largest single brewery facility in the world. When Larry Brownlow wanted to open a new Coors beer distributorship for a two-county area in southern Delaware‚ he was faced with the decision of which research he needed Manson and Associates to complete for determining the market potential of a two-county area in southern
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Molson Coors Alcoholic Beverages Industry‚ Team 1 Leah Black Professor Shaked‚ FE449 12:30PM Section Industry Information -Make sure to add info about craft beer -Shift away from beer and towards liquor Key Industry Drivers For beer‚ wine and liquor‚ demand from wholesalers is very important. Companies in this industry must work closely with wholesalers to properly promote their product and ensure shelf space at liquor stores. An issue that arises with wholesaling is state restrictions
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the government allow Canadian companies to be purchased by foreign corporations? 3. What are the advantages and disadvantages to foreign ownership of Canadian companies‚ including beer-makers? 1) Labatt – Sold to InBev SA located in Belgium. Molson’s – Sold to Adolph Coors Co. with headquarters at Golden‚ Colorado U.S. Sleeman – Sold to Sapporo which is located in Tokyo‚ Japan. 2) From the point of view of being a proud Canadian foreign companies should not be able to purchase
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Summary Molson Coors is known worldwide as the fifth largest brewing corporation and they have proven to be a very successful company over their past years of business. Molson and Coors never used to be together. They were each successful breweries long before the two merged in 2005 and although the merge may have had early signs of failure‚ things have begun to look good for the company. Peter Swinburn‚ the company’s CEO has been able to greatly improve the every-day operations of Molson Coors and completely
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preservatives in Golden‚ Colorado‚ the heart of the Rockies‚ Coors Light is the eighth leading beer brand in the world. As Molson Coors’ largest brand‚ the new parent company after the 2005 merger‚ Coors Light has established itself as the biggest selling brand in both the US and Canada. The merger‚ however‚ left the company heavily indebted and with limited capital suffered a loss of partnering and sponsorship for major sporting events. Coors Light has worked extremely hard to maintain the positioning
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1. Coors was very successful through the mid-1970s. How was its value chain configured up to that point? What type of generic competitive advantage did such a value chain confer? (Please focus your analysis on procurement‚ manufacturing‚ marketing‚ and distribution functions). * Procurement * Long-term contracts with farmers * Can recycling for further use * Spring water from Colorado * Grain processing facility that supplied a third of its refined cereal starch * Sourced
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large brewing companies who were spending approximately $1200 million (about 10 percent of sales) in advertising in 1985. An entering firm had limited access to distribution channels as the wholesalers who served the largest brewers did not carry other brewer’s beer. The bargaining power of suppliers is medium since the removal of price controls for aluminum led to sharp increase in can prices and therefore raised cost of packaging materials and for the brewers. Some companies‚ like Coors‚ reduced these
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