strategic-management

ut he also proved he knew how to market it. The brewing company began shipping beer
by train to early settlers of other Western territories and in less than a year, the brewery was
making a profit. Coors beer was distributed into Colorado, California, New Mexico, and
Wyoming. In 1880, Adolph had earned enough money to buy his partner’s share of the
business and become sole owner.
Even though Prohibition became a reality in 1916, Adolph and his three sons found
ways to keep the brewery open and profitable during the 18 dry years by producing
beverages such as malted milk and a near-beer called Mannah.
Adolph died in 1929 before Prohibition ended, but one of his sons, Adolph Jr.,
assumed control of the brewery. In the year after the end of Prohibition, the brewery
produced more than 136,000 barrels of beer. Coors had only distributed their beer in a few
isolated markets before Prohibition, but they began to expand their market to include 11
western states.
World War II presented Coors with yet another hurdle to cross. It was customary that
resources were diverted from business to support the war. However, because beer was
viewed as important for the morale of the troops, the government enabled breweries to
purchase enough barley and other materials to continue brewing beer. However, the beer
produced was different than it was before the war. The alcohol content was reduced from
4.6 percent to only 3.2 percent. Coors set aside half of all the beer they produced for sale to
the military. When the war finally ended, demand continued to grow, allowing Coors to
double the amount of barrels of beer that had been produced before the war. By 1955,
Coors was producing over 1 million barrels of beer.
Coors
Coors produces, markets, and sells high-quality malt-based beverages. Their portfolio
of brands is designed to appeal to a wide range of consumer tastes, style, and price preferences.
Coors’ brand portfolio is composed of Coors Light, the third-largest-selling
beer in the country, Coors (previously called Original Coors), and more than a dozen
other malt-based beverages, including primarily premium and super-premium beers.
Coors’ beverages are sold throughout the United States and in select international
markets. Coors Light has captured 13 percent of the market share and is the largestselling
light beer and the second-best selling beer brand overall in Canada (Molson
Coors, Annual Report, 2008).
Under the direction of fourth-generation Peter Coors, Coors began the 1990s by
having the fastest volume growth rate in the industry and by reaching their long-sought
goal of becoming the nation’s third-largest brewer. In addition, the company started
expanding internationally, making its products available to consumers in Japan, Canada,
Ireland, the United Kingdom, and other countries. Coors products are now sold in about 30
international markets in North America, Latin America, the Caribbean, Europe, and Asia.
Coors adds nothing artificial to its beers. In fact, in 2000, Coors developed special
strains of barley from its own malts. Coors methodically and deliberately takes approximately
55 days to brew, age, finish, and package its lagers—about twice as long as its
major competitors. The result is a naturally aged, stable, and smooth product. Coors beers
are packaged in dark amber bottles and protective cartons to guard against light damage.
Most of its beer products are kept cold throughout the brewing, packaging, and distribution
process. In addition, they are shipped cold in insulated or refrigerated railcars and
trucks. Coors gives free brewery tours in both Golden (daily except Sundays and
holidays) and Memphis (Thursday through Saturday). More than 250,000 visitors tour
Coors’ breweries each year.
Molson
Canada’s “preeminent brewer,” Molson was founded in 1786 by John Molson, who opened
his first brewery on the banks of the St. Lawrence River in Montreal. With over 3,000
employees and six breweries across the country, Molson is one of Canada’s premier
consumer brand names and North America’s oldest beer brand.
Molson’s vision is to become and remain one of the top-performing beer companies
in the world. It has a specific structure for achieving that vision within the company.
CASE 23 • MOLSON COORS — 2009 221